The IPO Process as a Hybrid Temporary Organization - Coordinating common ground between the firm, investment bank and legal adviser through cross-boundary mechanisms

Abstract

The initial public offering (IPO) of a firm is a complex process including an intricate network of actors that assure the publishing of firms and stock emittance. This paper explores the IPO process as a temporary organization and through 29 interviews with experienced IPO actors, create an empirical map that is divided into three phases and two workstreams. The paper uses a framework of coordination in temporary organizations to analyse the data and reveal insights relevant to both the temporary organization and IPO literature. First, in relation to the temporary organization literature, the paper shows that the IPO represents a novel form of hybrid temporary organization that comprise both repetitive and unique elements which poses coordinating challenges in terms of creating common ground for knowledge sharing, visibility and clear role structures. Second, it is argued that the unique firm has a coordinating role in the IPO process wherein repetitive advisers allow for them to gain appropriate knowledge to perform their responsibilities. Third, the investment bank is demonstrated to have a more diverse coordinating role than previously accounted for in the IPO literature. Besides contributing with coordination of the financial transaction, they are demonstrated to set president for knowledge sharing between all involved advisers as well as for the firm in their first and following encounters. Lastly, the legal advisor and prospectus is demonstrated to have a prominent role in coordinating IPO actors through the notation workstream, thereby contributing to how common ground, visible work and clear role structures are established.