THE DYNAMICS OF ORGANIZATION CREATION: TRACKING THE IN-DEPTH THOUGHTS AND ACTIONS OF A NASCENT ENTREPRENEUR
Benyamin
Lichtenstein, University of Hartford
G. T. Lumpkin,
University of Illinois–Chicago
Kevin Dooley,
Arizona State University
Principal Topic
How do new organizations come into being? We develop a dynamic model that incorporates three modes of organizing: cognitions are explored in terms of opportunity recognition; actions are explored through start-up behaviors, and contextual constraints are captured in configuring processes. Following recent theory we assume that these modes will not remain stable over time, but will shift in non-linear ways. This and other propositions are empirically tested through our in-depth, longitudinal, multi-method analysis of one entrepreneur who was in the process of creating her own business.
Method
We analyzed 15 months of bi-weekly interviews as well as financial, marketing, and product information. We tracked cognitive changes using Centering Resonance Analysis, a new discourse text-analysis package. We tracked behavioral changes using visual time series analysis. We tracked configurational changes using event time series analysis.
Results and Implications
Our analysis reveals an “emergence event” in the venture, reflecting a qualitative (statistically significant) shift in the entrepreneur’s cognition, action, and configuring patterns. This shift is nearly instantaneous—occurring in just 6% of the total data period within each mode—and is highly coordinated across all three modes. However, contrary to theory, we find that the shift was catalyzed by changes in start-up behavior, which lead to a new configuration, which then leads to a new cognitive schema.
These results confirm a growing recognition that organizational emergence is neither a unitary nor a cumulative process, but instead involves a series of non-linear and unpredictable shifts and changes. Moreover, our counter-intuitive finding that behavioral and configurational changes sparked cognitive reframing argues against the common notion that thought precedes action; suggesting instead a Weickian query “how do I know what I am until I see what I do.” In addition, the multiple modes of data and analysis suggest that while context is an important factor in entrepreneurship, it alone cannot reveal the subtle dynamics underlying emergence. Practically, our findings reflect a growing recognition that visioning and planning, important as they are, may be less crucial than an action orientation for successfully creating new ventures.
CONTACT: Benyamin Lichtenstein, University of Hartford, W. Hartford, CT, 06117; (T) 860-233-5884; (F) 860-768-4226; Benyamin@hartford.edu
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