A review of the firm life cycle theory and its applicability to small and medium sized enterprises

This paper provides an overview of the firm life cycle theory with a focus on small and medium sized enterprises. The development of organizational life cycle theory, further research directions and theoretical limitations are outlined. Some reasons for the combined application of stage models and the life cycle model in SME development research are presented. This paper addresses two nouvelle areas. Firstly, the theoretical development perspective on the life cycle theory is provided. Secondly, most reviews have looked at firm life cycle theory from the perspective of larger firms and this paper aims to address this deficit