An Emergent Life-Cycle Model in Small New Zealand Wineries

Abstract

A number of authors have noted that few small firms grow into larger firms. As a result they have criticized models that implicitly assume small firms grow. One such model is that of the organizational life-cycle. These models assert that firms go through a series of distinct stages or cycles as they develop over time. This study develops a four-stage model of a life-cycle based on 20 case studies of small growth-oriented New Zealand wineries. Wineries were found to go through pre-birth, start-up, expansion and growth stages in their first eight years. During this time, owners had little choice about the developmental path their organizations took. After this initial eight years, owners had far more influence on the future direction of the firm.