Founder Influences on the Development of Organizations: A Comparison between Founder and Non-Founder Managed Russian Firms

The paper deals with the problem of founders’ impact on the process of organizational development and performance. The goal of the research is to provide a comparative analysis of activity in founder-run and non-founder-run Russian firms. In order to run this analysis 224 companies created from scra...

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Bibliographic Details
Published in:Journal of business economics and management 2008-01, Vol.9 (2), p.91-95
Main Authors: Knatko, Dmitri, Shirokova, Galina V
Format: Article
Language:English
Subjects:
Economy
entrepreneurship
founder
organization life cycle
Russia
succession
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Summary:The paper deals with the problem of founders’ impact on the process of organizational development and performance. The goal of the research is to provide a comparative analysis of activity in founder-run and non-founder-run Russian firms. In order to run this analysis 224 companies created from scratch by Russian entrepreneurs in the period of years from 1992 to 1998 were studied. Statistical analyses were performed on two independent samples of companies, namely 162 companies managed by the founders and 62 companies that were run by hired professional managers. As a result of the analysis, statistical differences were found in relation to the criteria of number of employees and hierarchical levels; firms managed by founders usually have less staff and fewer hierarchical levels than the non-founder companies. Nevertheless the dynamics in sales of the two samples of founder and non-founder companies during the last 3 years were quite similar.
ISSN:1611-1699
2029-4433
DOI:10.3846/1611-1699.2008.9.91-95