Organizational Identity and Growth of Young Companies – A Case Study Approach Based by System Theory

Abstract

Research on organizational identity is, followed by Albert and Whetten’s seminal work in 1985, dominated by the social identity theory stream which puts focus on the «enduring” character of identity. In this context the inclusion of change is a major challenge, especially with regard to a changing identity itself. Constructs of organizational identity which are based on system theory are reflexive in nature and thus incorporate an immanently dynamic view on identity. In this paper we briefly summarize different concepts of organizational identity before we describe the system theory view on organizational identity as a theoretical basis for two case studies. These cases deal with changes in the organizational identity of two young companies during times of growth. It results that both case companies run the risk of falling into an identity trap if they miss to adapt their identities. Identity adaptations, observed by changing self descriptions, are triggered by irritations from the environment.