Laurier Centre for Research in Entrepreneurship (formerly known as NeXt)
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 entrepreneurís changing vision and the membersí sense of organizational mission.
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revised May 4/06