Metamorphosis of Entrepreneurial Ventures: A Holistic Paradigm from Two Tales

Abstract

Some entrepreneurial ventures grow into large organizations within a relatively short duration. These startups rapidly increase their scale and scope to turn into matured organizations. Though the literature is replete with such examples, there is no explanation for such a phenomenon. Also, nothing has been said about the role of the environment in metamorphosis of such ventures. We look at two global organizations and explain their metamorphosis. We arrive at four dynamic stages through which an entrepreneurial venture grows: prime pillar formation stage, scale catapult stage, scope enlargement stage, and maturity stage. We also explain the different roles played by the firm and the environment during each stage, the interactions between each of these roles, and the dominant strategic process underlying in each stage.