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This book addresses the organizational design of entrepreneurial
ventures. While many definitions of organizational design exist,
the authors consider it as consisting of two main dimensions - the
organizational structure of the firm and the human resource
management practices. The authors focus on entrepreneurial ventures
operating in high-tech industries because these firms have
characteristics that generate salient organizational challenges and
require appropriate design choices. First, high-tech
entrepreneurial ventures operate in high-velocity environments
where rapid changes require decision-makers to timely process a
large amount of information and cope with uncertainty. Moreover,
most high-tech entrepreneurial ventures are founded by teams of
high-skilled individuals, who, in turn, hire highly skilled
employees. The human capital of founders and key employees, as
reflected in their education and work experience, is the main
source of competitive advantage for these firms but creates major
organizational challenges. After the initial introduction, Section
2 illustrates the general contextual characteristics of high-tech
entrepreneurial ventures that pose organizational design challenges
different from those of both incumbent firms and low-tech ventures.
Next, the authors present the state of the art on the main
dimensions of high-tech entrepreneurial ventures' organizational
design. Section 3, in particular, focuses on the relevant elements
of organizational structure while in Section 4, the literature on
human resource management practices is reviewed. Section 5 moves
from the premise that high-tech entrepreneurial ventures are
heterogeneous across several dimensions and highlights prominent
factors that shape their organizational design. Section 6 concludes
by summarizing its main points and suggesting directions for future
research.
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