AN EMPIRICAL INVESTIGATION OF THE ORGANISATION LIFE CYCLE MODEL FOR SMALL BUSINESS DEVELOPMENT AND SURVIVAL IN THE SOUTH PACIFIC

Four general stages appear to be common in the organisational life-cycle of small businesses in Papua New Guinea (PNG): Formation, Early Growth, Later Growth and Maturity. Owner/managers confront different set of problems as the life-cycle of their businesses progressed inevitably shifting their operational and management priorities, degree of involvement in running the business, and the scope of management. External environmental problems appear predominant over the life-cycle particularly in the formation and survival stages. Internal problems predominate the late growth and maturity stages. Planning emerged as the biggest problem of small businesses in PNG. At the formation stages, developing a viable business plan for the sourcing of funds and establishing a direction for the business was the major planning problem. Marketing planning problems were more prevalent in the growth stages, and financial planning problems appeared at both the formation and maturity stages. Other problems, such as poor customer contact and weak and fragmented market, spanned the life cycle stages. The organisational life-cycle concept was shown to be adaptable across cultures but problems at different stages of the organisational life-cycle differed across cultures and level of economic development of nations.

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The dividend signaling hypothesis and the corporate life cycle

Managerial Finance ◽

10.1108/mf-10-2019-0512 ◽

2020 ◽

Vol 46 (12) ◽

pp. 1569-1587

Author(s):

Narcisa Meza ◽

Anibal Báez ◽

Javier Rodriguez ◽

Wilfredo Toledo

Keyword(s):

Life Cycle ◽

Growth Stages ◽

Content Type ◽

Future Earnings ◽

Life Cycle Stages ◽

Dividend Signaling ◽

Corporate Life Cycle ◽

Firm’S Life Cycle ◽

Signaling Hypothesis ◽

The Relationship

PurposeThis paper aims to examine the relationship between the dividend signaling hypothesis and a firm's life cycle.Design/methodology/approachThe authors use Dickinson's (2011) methodology to develop a proxy for the firm's stages in its life cycle and to examine the relationship between dividends and future earnings following a nonlinear setting.FindingsUsing a sample of US firms during the 2000–2014 period, the authors find that the signaling hypothesis can be dependent on firm-specific characteristics, such as life cycle stages. The authors report that the relationship between dividend changes and subsequent earnings changes is different for different life stages. They also find that changes in the amount of the dividend provide some information about future earnings, especially during the early (introductory and growth) stages. These results are consistent with the use of earnings or return on assets as the dependent variables in models of earnings expectations.Originality/valueThe authors believe that this is the first time that the dividend signaling hypothesis has been linked to the life cycle of the firm.

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The Role of Firms’ Life Cycle Stages on Voluntary Disclosure and Cost of Equity Capital in Brazilian Public Companies

Brazilian Business Review ◽

10.15728/bbr.2020.17.6.1 ◽

2020 ◽

Vol 17 (6) ◽

pp. 601-620

Author(s):

Paulo Victor Novaes ◽

Jose Elias Almeida

Keyword(s):

Life Cycle ◽

Voluntary Disclosure ◽

Cost Of Capital ◽

Equity Capital ◽

Growth Stages ◽

Cost Of Equity Capital ◽

Cost Of Equity ◽

Public Companies ◽

Life Cycle Stages ◽

The Cost

We examine the effects of firms’ life cycle stages on voluntary disclosure and the cost of equity capital. We also examine the relationship between the interaction of life cycle stages and voluntary disclosures measures on cost of equity capital. Our sample consists of non-financial Brazilian public companies, covered by analysts between 2008 and 2014, collected from I/B/E/S and Comdinheiro databases. We find that voluntary disclosure level is higher for firms in maturity and growth stages. We also find that firms in introduction and decline life cycle stages show higher implied cost of capital, however declining firms that increase voluntary disclosure reduce their cost of capital. Moreover, mature firms significantly reduce such inherent risk by reporting social and environmental voluntary information. Our results are useful for investors, practitioners, and regulators to the understanding of the incentives of voluntary disclosure practices.

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A change in the importance of mortality factors throughout the life cycle stages of small businesses

Journal of Global Entrepreneurship Research ◽

10.1186/s40497-016-0051-1 ◽

2016 ◽

Vol 6 (1) ◽

Cited By ~ 2

Author(s):

Alexandre Farias Albuquerque ◽

Edmundo Escrivão Filho ◽

Marcelo Seido Nagano ◽

Luiz Adalberto Philippsen Junior

Keyword(s):

Life Cycle ◽

Small Businesses ◽

Mortality Factors ◽

Life Cycle Stages

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Managing Growing Pains for the Sustainable Growth of Organizations: Evidence from the Growth Pathways and Strategic Choices of Korean Firms

Sustainability ◽

10.3390/su10103824 ◽

2018 ◽

Vol 10 (10) ◽

pp. 3824

Author(s):

Yeongjun Yeo ◽

Chansoo Park

Keyword(s):

Life Cycle ◽

Organizational Development ◽

Organizational Structures ◽

Sustainable Growth ◽

Business Strategies ◽

Growth Stages ◽

Strategic Choices ◽

Life Cycle Stages ◽

Growing Pains ◽

Different Types

Life-cycle literature suggests that business organizations evolve in consistent and predictable manners, implying that organizational structures and strategies evolve as firms move through growth stages. The sustainable growth of firms involves successful transitions between growth stages through managing different types of organizational growing pains and maintaining sustainable competitive positions, suggesting shifts in the strategic orientation of the firms as the firms grow. Based on this approach, this study proposes a holistic framework to account for linkages between determinants of a firm’s growing pains and key areas of organizational development, based on a synthesis of qualitative and quantitative findings. From statistical analyses, Korean firms are found to have proceeded through distinct stages of growing pains as they reached organizational sizes as follows: 20, 100, 300, and 500 million USD in sales revenue. Furthermore, qualitative findings suggest that business strategies evolve to deal with different types of growing pains in life-cycle stages from the systemization of management system to the revitalization process. Our results expect to provide extensive knowledge on the role of strategic management to deal with firm’s growing pains, considering both internal and external factors governing organizations. Furthermore, this study expects to provide an insightful and practical framework for managing organizational growing pains and transitions required to build sustainably successful organizations.

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The Effect of an Acquirer’s Life Cycle Stage on the Performance of M&As: Evidence from Mega and Non-Mega Deals in the US

Journal of Corporate Finance Research / Корпоративные Финансы | ISSN 2073-0438 ◽

10.17323/j.jcfr.2073-0438.13.3.2019.7-18 ◽

2019 ◽

Vol 13 (3) ◽

pp. 7-18

Author(s):

Svetlana Grigorieva ◽

Angelina Egorova

Keyword(s):

Life Cycle ◽

Life Cycle Stage ◽

Growth Stages ◽

Stock Market Reaction ◽

Life Cycle Stages ◽

Thomson Reuters ◽

Corporate Life Cycle ◽

Main Determinants ◽

The Impact ◽

A Performance

A substantial body of academic literature continues to investigate whether M&A deals create or destroy shareholdervalue and what are the main determinants of M&A performance, but the results are still inconclusive. In this paper, weinvestigate the impact of corporate life cycle on M&A performance from the perspective of acquiring firms.We shed additional light on the performance of M&A deals from the perspective of bidders’ life cycle stages and thedeal size . We single out mega deals, where activity remains upbeat, and compare their effects on M&A performancewith the effect of non-mega transactions. In contrast to previous studies in the area, we identify four life cycle stages(introduction, growth, maturity and decline), whereas the existing literature mostly focuses on three life cycle stages.Our sample includes 2413 US domestic M&A deals from 2003 to 2017, and consists of 386 mega deals and 2027 nonmega transactions. The data for analysis were obtained from Capital IQ, Bloomberg and Thomson Reuters Eikondatabases.Based on the event study method and regression analysis, we find that stock market reaction is positive for M&A deals inthe US and this reaction is more favourable for non-mega acquisitions than for mega M&A deals. We show that nonmega deals outperform mega transactions for acquirers at the introduction and growth stages of the business life cycle.Our results also indicate that benefits for shareholders from acquiring firms decrease on average with the lifecycle of anorganisation, but the returns for shareholders are positive in both cases. By contrast, in mega deals, shareholders receivenegative returns when the acquiring firm is at introductory life cycle stage.The scientific novelty of this paper is reflected in our contribution and expansion of the scope of research in this field.There is a relative scarcity of analysis examining M&A deals from the perspective of life cycle stage, and our addition of afourth category of analysis in this area, along with a focus on the value of the deal, expands the range of methodology forfuture research. This research is open to further expansion in different markets and our methodology is readily adaptablefor the addition of further analytical variables. Importantly, with the validation of our research hypotheses and theconfirmation of significant results, we provide a useful new tool for managers and professionals engaged in M&A dealsto actively gauge and forecast practical implications of their deals.

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Research on the Correlation between Technological Innovation and Value Increase of Agricultural Companies Based on the Perspective of Company Life Cycle Theory

E3S Web of Conferences ◽

10.1051/e3sconf/202127503081 ◽

2021 ◽

Vol 275 ◽

pp. 03081

Author(s):

Zhu Yu ◽

Hua Zheng

Keyword(s):

Life Cycle ◽

Empirical Research ◽

Technological Innovation ◽

Saving Energy ◽

Maturity Stages ◽

Life Cycle Theory ◽

Life Cycle Stages ◽

Start Up

Technological innovation should be given full play, and R&D by agricultural companies should be given guidance. Because, for the purpose of increasing listed agriculture companies’ value, promoting the industry’s development, saving energy and resources in advanced agriculture productivity, such actions are of great significance. This paper takes agriculture companies listed in China’s A-shares from 2015 to 2019 as research samples, and makes empirical research on the influence of technological innovation on the value of agriculture companies in different life cycle stages. It is found that technological innovation does not significantly increase the companies’ value in their start-up and decline stages, while the situation becomes the opposite way in growth and maturity stages.

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