From the organizational life-cycle to “ecocycle”: a configurational approach to strategic thinking

Abstract

Purpose The purpose of this paper is to build on the configurational approach to strategic thinking – with the “écocycle” framework – to advance the understanding of the organizational life cycle. This integrative approach brings new insights into the dynamism of organizational life cycle. Design/methodology/approach This framework builds on analysis of the literature on organizational life cycle and extensive consulting and teaching experience with business executives. Findings The framework highlights the complex and dynamic nature of thinking and decision making in organizations. It suggests a spectrum of multiple ways of thinking over time, as strategy changes to accommodate each organization’s challenging environment. Originality/value The “ecocycle” framework progresses the understanding of organizational life cycle, by incorporating the diverse factors and features into a more unified, holistic and synthetic approach. The framework challenges the linear sequential view of organizational life cycle, and suggests the process of strategy development is not comprised of independent forms or alternative choices, but rather different business practices of organizations aligned with different stages of the strategic thinking cycle.

The Organizational Life Cycle: Review and Future Agenda

“…We conducted a standard literature review starting with the studies listed in reviews of Quinn and Cameron (1983) and Dufour, Steane and Corriveau (2018). Then using the snowball method we added several other studies that are cited in the papers we review.…”

“…It usually grows foreseeably (Adizes, 1979) and at market rate (Kazanjian, 1988). The organization now lives on past successes, keeps it direction and focuses on exploitation (Dufour, Steane and Corriveau, 2018). At this time, the structure and processes are formalized as management is separated from ownership (Churchill and Lewis, 1983;Miller and Friesen, 1984) -which, however, may not be the case of small-and medium-sized organizations.…”

“…In our review, we focus on traditional organizational life cycle models. The theory itself has not developed much since its golden age in 70's and 80's (Dufour, Steane and Corriveau, 2018), yet it is possible that our traditionally conducted review may miss some recent studies that would enrich our perspective. Despite that, we believe that we present a concise picture of the organizational life cycle theory.…”

“…The theory itself is characteristic for the wealth of differing theoretical concepts rather than consensus understanding of the organization's life stages (Dufour, Steane and Corriveau, 2018). We overview the major frameworks further in our work.…”

The Organisational Life Cycle Scale: An Empirical Validation

“…Despite its great popularity among academics, business practitioners and management consultants, the life cycle theory of organisations has been, since its outset, the subject of controversy (Dufour et al, 2018). OLC theory has been critiqued by a number of researchers (e.g., Dufour et al, 2018; Levie & Lichtenstein, 2008, 2010; Lichtenstein et al, 2007; McMahon, 1998; O’Farrell & Hitchens, 1988; Penrose, 1952; Phelps et al, 2007; Stubbart & Smalley, 1999) with regards to the linearity of a firm’s growth, the stage sequence, the descriptive nature of its foundation and so forth. However, this theory has gained considerable currency among scholars and practitioners for several reasons.…”