Organisational Size Sample Clauses

Organisational Size. ‌ The second driver for learning in new ventures is firm size8. Although entrepreneurial learning is mostly experiential and thus dominated by the principle of learning-by-doing, new ventures do not necessarily develop all their capabilities internally (Zahra and Xxxxxxxxxxx 2004). By increasing the number of employees, organisations acquire knowledge through grafting; i.e. they gain access to knowledge that was not available before (Xxxxx 1991). However, not only the acquisition of knowledge increases with the number of organisational members. Organisations need to interpret the knowledge; i.e. the collected data is given meaning (Daft and Weick 1984). From chapter 2.3.1 we have learned that the outcome of organisational learning improves with the number of shared interpretations. Consequently, we can assume that the exchanges of different interpretations of acquired and distributed knowledge increase with the size of the entrepreneurial venture. The fact that the number of possible interactions between employees rises much faster than the actual increase of employees (Davila 2005)9 further supports the argument. Since entrepreneurial learning fosters the creation of dynamic capabilities, I put forward the following hypothesis.