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Creating New Technology‐Based Organizations: A System Dynamics Model

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  • Stuart L. Hart
  • Daniel R. Denison

Abstract

While the study of mature organizations and bureaucracies is well established, there has been comparatively little examination of the creation and development of new organizations. What work has been done is highly fragmented, primarily by discipline, and concentrates on different facets of a complex phenomenon. Following a literature review and classification this article attempts a conceptual integration; it proposes a system dynamics model for the creation and development of one particular organizational type: new, technology based organizations. Drawing upon concepts from ecology, the central concept of the model is that new venture creation takes place within, and is thus dependent upon, a larger context of “ecosystem” consisting of environmental resources (technical expertise, capital, services) and existing inhabitants (individuals, firms, and institutions). Intraorganizational factors are also discussed including a set of proposed measures for new venture success. The article closes with some suggestions for the direction of future research and describes a research project the authors have recently begun.

Suggested Citation

  • Stuart L. Hart & Daniel R. Denison, 1987. "Creating New Technology‐Based Organizations: A System Dynamics Model," Review of Policy Research, Policy Studies Organization, vol. 6(3), pages 512-528, February.
    • Handle: RePEc:bla:revpol:v:6:y:1987:i:3:p:512-528
    DOI: 10.1111/j.1541-1338.1987.tb00765.x
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    Cited by:

    1. Howard E. Aldrich, 1990. "Using an Ecological Perspective to Study Organizational Founding Rates," Entrepreneurship Theory and Practice, , vol. 14(3), pages 7-24, April.
    2. Yuen Ping Ho & Poh Kam Wong, 2005. "Availability of Financing, Regulatory Business Costs and National Entrepreneurial Propensity," Industrial Organization 0504025, University Library of Munich, Germany, revised 03 Aug 2005.

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