The
Management Department
Department
Seminar Series
BART CLARYSSE
ETH Zurich
Tuesday,
April 10th 2018
Room N231
at 10:00 am
(5.00
p.m
in
Singapore)
Theme: “Sowing
the Seed of Failure: Organizational Identity Dynamics in New Venture Evolution”
Abstract: “New ventures in nascent markets often
morph from one organizational form to another, while still developing their
organizational identity. We study how the organizational identity of a new
venture co-evolves with such a process of continuous morphing. To shed light on
this process, we conduct an in-depth longitudinal field study of a new venture
developing a technology to transform Internet websites for mobile devices. The
venture morphs from one organizational form to another successfully once, but
fails in its second attempt to pivot. Comparing the successful and the unsuccessful
change, we find that the successful morphing relies on the ability to
crystallize the role identities of organizational members in line with
organizational identity. However, as an unintended consequence, the role
identities rigidify and inhibit further adaptation. The explanation lies in the
surprisingly strong influence of one stakeholder: the venture capitalist that
provides resources to the firm. Through involvement in co-development of the
business model, recruitment, and the implementation of routines, the committed
venture capitalist accelerates the crystallization of role identities, yet that
also leads to an inflexible organizational identity, which inhibits subsequent change.”
Keywords: organizational identity,
organizational form, role identity, entrepreneurial processes,
venture capital,
new venture growth
