The Organizational Life Cycle

1/2

The Organizational Life Cycle
Birth Liability of newness Dangers associated with being first Lacks formal Structure Hostile conditions for obtaining resources

2/2

Growth

Institutional Theory Building legitimacy amongst stakeholders Organizational Isomorphism Imitating the Leaders Failure to adapt to External of Internal pressure Dwindling Effectiveness and Profitability Organizational Inertia to changes Risk aversion, Overly Bureaucratic culture, Desire to Maximize rewards Decline to the point of no return Insolvency resulting into the selling of Assets

Decline

Death

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