Digitalization in Startups and the Proclivity to Professionalize: Ignorance is Bliss?

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Abstract

Managing information processing requirements and allocating founder attention is crucial for startups. Digitization changes the volume and nature of information startups need to process. Based on information processing theory, we theorize that startups respond to these new, digital information challenges with an increased proclivity to professionalize by introducing middle management - especially when founder attention is scarce because other startup activities demand founder attention. Based on a sample of 1,438 startups, we find support for our hypotheses. Our findings have implications for startup management and for theory on the emergence of organizational design in startups.
Original languageEnglish
Title of host publicationProceedings of the Eightieth Annual Meeting of the Academy of Management
EditorsGuclu Atinc
Number of pages6
Place of PublicationBriarcliff Manor, NY
PublisherAcademy of Management
Publication date2020
Article number196
DOIs
Publication statusPublished - 2020
EventThe Academy of Management Annual Meeting 2020: Broadening Our Sight - Virtual
Duration: 7 Aug 202011 Aug 2020
Conference number: 80
https://aom.org/events/annual-meeting/past-annual-meetings/2020-broadening-our-sight

Conference

ConferenceThe Academy of Management Annual Meeting 2020
Number80
LocationVirtual
Period07/08/202011/08/2020
Internet address
SeriesAcademy of Management Proceedings
ISSN2151-6561

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