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An Empirical Test of a Stage of Growth Progression Model

Author

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  • Robert K. Kazanjian

    (Emory Business School, Emory University, Atlanta, Georgia 30322)

  • Robert Drazin

    (Emory Business School, Emory University, Atlanta, Georgia 30322)

Abstract

This paper presents a stage of growth model for technology based new ventures (TBNVs). TBNVs are postulated to evolve through four discrete stages of growth---Conception and Development, Commercialization, Growth, and Stability. Based on a longitudinal sample of 71 ventures in the computer and electronics industries, the hypothesis that TBNVs progress according to this model is tested using the del procedure for prediction analysis of cross-classification tables. The hypotheses are supported, although not all firms progressed as expected. These results suggest that some variation in interstage transition patterns are due to a progression imperative.

Suggested Citation

  • Robert K. Kazanjian & Robert Drazin, 1989. "An Empirical Test of a Stage of Growth Progression Model," Management Science, INFORMS, vol. 35(12), pages 1489-1503, December.
    • Handle: RePEc:inm:ormnsc:v:35:y:1989:i:12:p:1489-1503
    DOI: 10.1287/mnsc.35.12.1489
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