Asymmetric Cost Behavior Across Life Cycle Stages

The traditional model of cost behavior has been criticized for its symmetric cost behavior assumption. A new model has been proposed assuming that costs respond differently to upward and downward activity changes. The main objectives of this paper are to investigate the existence, degree, and nature of asymmetric cost behavior (ACB) phenomenon and examine how the organization life cycle (OLC) affects this phenomenon in the context of Egypt. The current study achieves these objectives by employing multiple regression to explore the behavior of cost of goods sold (COGS), selling, general and administrative cost (SGA), and total cost (TC) for 1577 firm-year observations (99 manufacturing firms) during the period from 2000 to 2019. The results demonstrate that all three cost proxies (COGS, SGA, and TC) are sticky with the highest degree of stickiness to TC. In addition, OLC is a conditional factor that affects how costs behave in response to change in activity level. Consistent with theoretical propositions, both COGS and TC exhibit anti-stickiness behavior for firms in the introduction stage and stickiness behavior for firms in the growth, mature, and shakeout/decline stages. However, SGA is only sticky for firms in the mature stage. However, the hypotheses related to asymmetric behavior of SGA were rejected for firms in the introduction, growth, and shakeout/decline stages.

Assessment of the Network Interaction Synergistic Effect According to the Organization Life Cycle

The article's purpose was to econometric substantiate the peculiarities of achieving a synergistic effect and sources of economies of scale for participants in entrepreneurial networks, for example, industrial enterprises in Ukraine. The regression analysis method has been used to identify sources of economies of scale of production, which change affects the efficiency of enterprises. With the elasticity coefficient, the features of the manifestation of the effect of economies of scale for 106 network and non-network enterprises were determined, taking into account the organizational life cycle of the development. It was revealed that, despite the ephemeral nature of the economies of scale, network enterprises are characterized by longer nature as a component of the synergistic effect of production activities and a decrease in costs, regardless of the development cycle of the organization. The results obtained can be useful as a basis for strategic planning in business integration.

Toward a better comprehension of external environment factors and life cycle stages importance on SME failure in Brazil

Although importance of small and medium-sized enterprises (SME) is relatively well established in the literature, little research exists on life cycle stage at the time of SME failure or closure. This exploratory research builds a comprehensive description of SME mortality factors related to the external environment to analyse the changing importance of these factors throughout the SME’s organization life cycle stages (OLC). Seven case studies are used to develop a more complete understanding of the relationship between external environment and mortality factors. Data were collected through interviews and analysed based on inductive content analysis technique. The results indicate that failure SME did not adequately assimilate nine main factors: non-payment of the clients, competition with big business, seasonality of sells during the year, minimum amount of purchase required by suppliers, tributary load, government economic plans, national economy crisis, and headquarter/office robbery and asymmetric relationship with the franchisor. Regarding SME’s OLC, environmental factors’ relevance changed throughout the SME life cycle. Additional result suggests that exists more stages than discussed in the literature, reported by sample SME owner-managers studied.

JENIS KAPABILITAS DINAMIS PELAKU RINTISAN START UP ENTREPRENEUR (Studi Pada Pelaku Subsektor Gastronomi di Industri Kreatif)

The purpose of this study was to identify the types of dynamic capabilities for start-up entrepreneurs in the creative industries gastronomy sub-sector where the Organization Life Cycle stage is at the entrepreneurial stage. The method used was a snapshot case study with a naturalistic descriptive type. The informants were determined using purposive techniques with some criteria that are in accordance with the focus and locus of research. Data were collected through in-depth interviews, observation, and literature study. Data were analyzed using an interactive model. The results showed that there are several types of dynamic capabilities that start-up entrepreneurs need: the ability to choose and design organizational structures, the accuracy of the choice of information technology types, and the ability to design market-oriented strategies. Based on the results of the research above, the startup entrepreneurs are required to have a renewal ability to sustain managerial skills to analyze and adapt to the dynamics of the internal and external environment that changes amicably. Tujuan penelitian ini adalah mengidentifikasi jenis kapabilitas dinamis yang diperlukan bagi para pelaku start up entrepreneur di sub sektor gastronomi industri kreatif yang tahap Organization Life Cycle berada pada tahap entrepreneurial. Metode yang digunakan adalah snapshoot case study dengan type deskriptif naturalistic. Penentuan informan menggunakan teknik purposive, dengan beberapa krieria yang sesuai dengan fokus dan lokus penelitian. Teknik pengambilan data melalui wawancara mendalam, observasi dan studi pustaka. Analisis data menggunakan model interaktif. Hasil penelitian menunjukkan ada beberapa jenis kapabilitas dinamis yang sangat diperlukan bagi pelaku rintisan start up entrepreneur, yaitu kemampuan memilih dan mendesain struktur organisasi, ketepatan pemilihan jenis teknologi informasi dan kemampuan mendesain strategi yang berorientasi pasar. Berdasarkan hasil penelitian di atas, maka pelaku rintisan start up entrepreneur dituntut untuk memiliki renewal ability untuk menopang managerial skill, sehingga mampu menganalisa dinamika lingkungan internal dan eksternal.

Разработка компонентов корпоративной системы управления проектами с учетом стадии жизненного цикла организации

В исследовании определены требования к моделям жизненного цикла организации, позволяющим сформировать адекватную корпоративную систему управления проектами и получить максимальный эффект от ее использования. Выявлены наиболее подходящие для поставленных целей модели жизненного цикла. Определен состав и содержание компонентов корпоративной системы управления проектами на разных стадиях жизненного цикла организации. The application of various life cycle models in the company development is becoming more widespread. When a company realizes at what stage of its life cycle it is, it can adjust its behavior, avoid traps and develop the appropriate strategies. Relevant management decisions are to be made and specific management tools are required at each stage of the organization life cycle. Project management is no exception. A specific set of approaches and methods of project management is essential at each stage of the organization life cycle. A certain level of the project management system development is inherent to each stage of the organization life cycle. The organization life cycle theory and project management were the theoretical and methodological background of the investigation. The study presents the analysis of various models of the organization life cycle according to their features in the process of developing the corporate project management system and its individual components. The requirements to the life cycle model, which allows forming an adequate corporate project management system and get the maximum effect from its application, were determined. The life cycle models that are most suitable for the set goals were identified. These were the Adizes life cycle model and the Chernov model. The requirements for the components of the corporate project management system at different stages of the organization's life cycle were specified. The study found that the implementation of project management system components is most effective in the period from the stage of "youth" to the stage of "aristocracy" in accordance with the model of the Adizes life cycle. It is at these stages that it is essential for the company to introduce the methodology and formalize project and program management processes. The necessity for setting up a full-fledged project management system for the company appears at the stage of “stability” and it is at this stage that it has all the resources required for implementing the system.