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The life-cycle and decline of a Dotcom firm: an effectuation approach

Israel Drori, Benson Honig, Zachary Sheaffer

published: 2006 | Working paper

We examine, longitudinally and ethnographically, a case of organizational emergence and evolution, focusing on an Internet company during an economic bubble. We follow the organizational actors in the firm during a seven year period that includes a boom-to-bust economic cycle. The study seeks to examine how founders of an Internet start-up engage in effectuation processes, and how life-cycles interact with organizational culture. We observe the organizational tension resulting from clashes between the entrepreneur’s changing vision and the members’ sense of organizational mission. 

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revised May 4/06

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