Characterizing Organizational Lifecycle through Strategic and Structural Flexibility: Insights from MSMEs in Mexico

Abstract Today’s lifespan of companies tends to be low in the so-called micro-, small-, and medium-sized enterprises (MSMEs). Organizational life cycle (OLC) theory indicates that organizational aging is related, but not determined, by firm chronological age or its size. Therefore, a firm’s should analyzed other factors such as flexibility. The literature considers flexibility an essential capability, source competitive advantage, enabler long-term growth for MSMEs. However, little attention emerging economies has been paid examine nuances this concept relation OLC type companies. Additionally, studies tend analyze general term, ignoring it polymorphic concept. That why there need research different categories Drawing on quantitative approach conducting factor analysis, two-step cluster, decision tree analysis interrogate data from 257 MSMEs Mexico, study provides evidence dimensions strategic structural help characterize predict growth, maturity, declining stages Our results show mature firms present more flexible characteristics than those involved decline stages. classify MSME maturity stage include open communication, decentralized making, formalization. We provide model with these illuminate unaddressed issues regarding broad term relationship OLC.