Dynamics of rapid growth and change: A complexity theory of entrepreneurial transitions

At the heart of the new venture growth that fuels the economic expansion is the question of how organizations make transitions from one stage of their development to the next (Churchill & Lewis, 1983; Covin & Slevin, 1997). To study this phenomenon, a three-stage model of self-organization was formulated and then tested in four growth-based new ventures that were each undergoing a major developmental transition. Although the outcomes of the transitions were all different, the process of the transitions was virtually the same, each time validating the three-stage model. Implications for research and practice of new venture growth are provided.