Browsing by Author "Viljoen, Anika"
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- ItemDeveloping stage theory: an industrial management approach to validate an organizational life cycle developing theory(Stellenbosch : Stellenbosch University, 2016-03) Viljoen, Anika; Schutte, C. S. L.; Bam, Wouter; Stellenbosch University. Faculty of Engineering. Dept. of Process Engineering.ENGLISH ABSTRACT: Kenneth Boulding (1950) developed the first concept of an organizational life cycle model in 1950 (Ionescu and Negrusa, 2007). Ever since, discussions of this concept have developed within many disciplines, including management, education, sociology, psychology and marketing. Some organizational experts are of opinion that no organization progresses through a discrete set of development growth stages, while others have modernized Boulding’s (1950) original life cycle model to accommodate the growth changes seen in organizations today (Penrose, 1959). Marc van der Erve (2013), an organizational philosopher and expert, developed a stage theory which focuses on the growth of natural organizations (Van der Erve, 2013). Although his developed theory is based upon natural sciences (thermodynamics) and the social sciences (particularly sociology), he states that it can be applied to business organizations as well. He is of the opinion that his developed stage theory can predict the future success of organizations. The study is set out to investigate these claims and to determine whether Van der Erve’s (2013) theory can be accepted and is feasible in the industry today. The main discussion however will focus on the investigation of Van der Erve’s development stage theory and the comparison thereof with already existing life cycle models. Together with the main project statement, the study aims to answer two objectives, namely: - Firstly: The investigation of Van der Erve’s (2013) development stage theory and the comparison thereof with already existing life cycle models. - Secondly: Determining whether an organization is successful if its organizational life stage is aligned with the specific leadership role, as presented by Van der Erve (2013). Moreover, in order to answer the above mentioned objectives, the study attempts to formulize a proposed hypothesis on which various organizations will be tested on by evaluating them against certain variables. The hypothesis specifically examines the relationship between organizational life cycle stages, leadership roles, competitive strategy in the market and financial performance of an organization The motivation for this study derives from the research done by Van der Erve (2013) stating that the successful performance, as measured by its revenue growth, of any organization can be predicted if the right leadership role is in line with the respective organizational growth stage of the organization. The focus of this research is to offer a variety of ideas, measures, and empirical facts on how organizations grow and develop throughout their life cycle, and if, as stated in the newly developing stage theory, can predict the success of any organization. The study concludes by stating that the formulating hypothesis can neither be accepted nor rejected when analysing and investigating the four chosen organizations operating in the technology industry. Two organizations, in the service-based technology industry, showed significant correlation between the two factors, developing stage and leadership role, which resulted in a successful performance for the organizations. While the two organizations in the product-based technology industry showed similarities of a product life cycle. Together with the proven formulated hypothesis, interesting results and conclusions were seen in the outcomes of all four organizations under investigation. It can thus be said that the development theory can be applicable to some organizations in the technology theory, but research must be expanded to determine whether it is valid in other industries as well.