Entrepreneurial teams: Comparing high-growth software firms through structure and strategy

Purpose: The purpose of this paper is to explore hypothesis that high-growth firms founded by entrepreneurial teams use a unique combination of organic structure and emergent strategy. Design/methodology/approach: A quantitative study of 445 software development firms in the USA and 219 firms in Ireland was undertaken with a valid response rate of 22 per cent and 38 per cent, respectively. Findings: Generally, all classifications of firms in the USA and in Ireland demonstrated a combination of organic structure and emergent strategy at the beginning of their existence. As the US firms grew older they moved towards a combination of organic structure and deliberate strategy, while Irish firms moved towards a combination of mechanical structure and deliberate strategy that was hierarchical and organised. Research limitations/implications: The survey was conducted in only one industry and some firm classifications had small cell sizes. Practical implications: The ambition of this study was to offer owner-managers an evidence-based structure/strategy combination that would support the attainment of high-growth. Originality/value: This was the first occasion that the concept of a combination of structure and strategy was explored as an explanation for high-growth amongst firms founded by entrepreneurial teams.