Organizational Structural Changes: Life‐cycle Stage Influences and Managers′ and Interventionists′ Challenges

The focus of this study was on successful, small, rapidly growing firms and on people who manage (entrepreneurs/ CEOs) or help manage (interventionists/consultants) these firms. Investigates the structural (complexity, formalization and centralization) changes that occur in firms as they move from the start‐up stage to the growth stage of development. One reason these structural changes were examined was that rapid growth often strains organizations′ existing structures and, in turn, threatens their very existence. Further, little empirical information exists about structural changes in small, growing firms. Using a sample of Inc. 500 firms, finds support for the hypotheses that organizations in their growth stage will exhibit greater complexity, greater formalization, and less centralization than in their start‐up stage.