The Startup Paradox qualitative study of institutional logics in a growing organisation

Abstract

Research on organisational growth suggests that companies follow a predictable pattern of organising, where the degree of formalization increases as organizations grow. This study provides an alternative perspective to organisational growth by analysing the case of a company, that has grown from a handful to over 3500 in a period of ten years, through the lens of institutional logics. Data has been collected by conducting over 30 in-depth interviews, multiple observations and reviews of internal documents in an organisation. The case study illustrates, what we call the startup paradox, the problem associated with expanding the business, while at the same time maintaining the innovative organisational structure – the startup logic – that once was the source of uniqueness and organisational identity. The case study shows how new institutional logics were introduced in the company, as new hires entered the organisation with different norms about how to best organise, what we call institutional backpacks. Thus, institutional logics changed according to changing composition of the workforce, rather than through some predetermined organisational structure based on size or complexity. The study, thus, contributes with new insights to the research field of both organisational growth and institutional logics.