SYSTEMATIZATION OF FIRM LIFE CYCLE APPROACHES

Life cycle approaches describe and explain changes in organizational entities (e.g. firms) between their conception and termination. Life cycle theory assumes that development is governed or mediated by underlying natural, logic or institutional rules. Life cycle models do not deny that firm size and age vary, but they assert that prospective development is related to typical configurations (e.g. transition between stages, vulnerable spots). Knowing these configurations hypothetically can facilitate (pro-) active change and crisis management in favour of firm survival and growth. More than 100 life cycle models have been published during the last 50 years. These models differ in many respects, in general they analyse the opposite forces of growth (success) and decline (crisis) or both. Some of these models are more conceptual and holistic (e.g. whole life cycle; range from small to large); others are more empirical and very specific (e.g. small number of selected firms; mainly cross sectional, few longitudinal). Due to this variety the predictive power of life cycle models tend to be rather specific than general. This paper presents a conception to systemize life cycle models and to create a basis for comparing different approaches. Intended is a portfolio which relates life cycle approaches to firm characteristics and to configurations indicating (predict) requirements or recommendations for change and (pro-) active crisis management. This portfolio can aid further research and evaluations of relevance.