Abstract
Transitioning from a small entrepreneurial company to a larger, “structured”, organisation
presents both organisational and management challenges to the founding entrepreneur and
stakeholders. Various theories have been put forward that have studied the behaviour of the
entrepreneur. However the dynamics that evolve with the change process from the
behaviour and decisions of the entrepreneurial founder and managerial structures that
emerge have not been well researched. Through a case study research this paper reports a
longitudinal study done over three years on a company that is into manufacturing of drilling
rods. Theory of organisation transition and a framework for longitudinal researching of
entrepreneurial organisations making transition into structured organisations was used. The
change process was studied through a conceptual framework that has five informational
factors. New management systems and structures were put in place; a new manufacturing
strategy and business model were developed. The “verbal culture”, of small companies was
replaced by written instructions and proper records keeping, the manufacturing process was
documented and standardised through the implementation of Total Quality Management.
This paper contributes to the understanding of how an entrepreneurial company transition to
a structured one and strengthens our ability to assist entrepreneurs in achieving sustainable
growth.