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Change of Internal Communications in a Growing Technology-Affine Company

Pressfeldt, Carl-Oscar LU and Oudendijk, Sander LU (2014) ENTN19 20141
Department of Business Administration
Abstract
Background: Internal communication is widely accepted as an elementary factor for venture growth, arguably an even more dominant factor than external influences. As companies highly differ, the implemented internal communication systems, which prove to be adequate for company needs vary. The internal communication systems additionally vary at different stages of company growth. The gap in research the authors found are that theory of internal communication is largely over 40 years old and possibly obsolete due to changes in organisation structures and the emergence of immensely disruptive technologies such as the Internet. The theory is tested on its validity with a company, which is organisationally open-minded and technically adept with... (More)
Background: Internal communication is widely accepted as an elementary factor for venture growth, arguably an even more dominant factor than external influences. As companies highly differ, the implemented internal communication systems, which prove to be adequate for company needs vary. The internal communication systems additionally vary at different stages of company growth. The gap in research the authors found are that theory of internal communication is largely over 40 years old and possibly obsolete due to changes in organisation structures and the emergence of immensely disruptive technologies such as the Internet. The theory is tested on its validity with a company, which is organisationally open-minded and technically adept with technologies similar to modern communication technology.

Issue of study: With use of a case study based upon qualitative research, this paper examines structures, processes and methods for internal communication used within the company Trialbee AB during its foundation in 2010 and April 2014. The author’s interest lies within the change of internal communication structures that were needed for the employees to adapt to the different company growth phases. The interest lies specifically within the influence that organisation has, specifically the transition from informal to more formal communication channels, as well as the technological advantage that a company may have if the company product and internal communication systems are based on a similar technological background. The issue of study has been composed into two research questions:

1. What changes between formal and informal communication are needed for a small software company to break through its first growth barrier?

2. How does the employee's technical understanding of communication systems affect its implementation?

Method: A qualitative case study with five semi-structured in-depth interviews has been conducted with the company Trialbee AB. The research approach is abductive starting from existing theories which is compared to the empirical findings

Conclusion:
Contributions to the Academia: The findings are that internal communication confirmed to be crucial for the growth of the company. All interviewees had highly mutually affirmative perspective on what kind of internal communication systems were needed. Concerning the first research question, the informal communication was highly regarded and needed changes to adapt to company growth made strongly reactively to conserve the informal attitude. The second research question is in strong correlation with the first research question, as a technologically favourable and innovative company does indeed benefit from its internal knowledge, but does not utilize this to its full extent as traditional informal communication channels are regarded more highly.

Contributions to the Practitioners: The reactive habit of adapting to company growth is a successful strategy as it keeps the initiating founders and employees in agreement. The informal communication methods are an important asset of Trialbee. The founders should further increase their knowledge on what communication problems will likely arise to be align with their intention to grow the company further and be sensitive towards upcoming crisis. Lastly, the change of the founders roles from a manager working in the company should further change to an entrepreneur working on the company so that the company, not only regarding internal communications, can function independently from its founders. (Less)
Please use this url to cite or link to this publication:
author
Pressfeldt, Carl-Oscar LU and Oudendijk, Sander LU
supervisor
organization
course
ENTN19 20141
year
type
H1 - Master's Degree (One Year)
subject
keywords
internal communication, organisation strategy, communication behaviours, internal transparency, information distribution, growth barrier
language
English
id
4500486
date added to LUP
2014-06-27 12:11:04
date last changed
2014-06-27 12:11:04
@misc{4500486,
  abstract     = {{Background: Internal communication is widely accepted as an elementary factor for venture growth, arguably an even more dominant factor than external influences. As companies highly differ, the implemented internal communication systems, which prove to be adequate for company needs vary. The internal communication systems additionally vary at different stages of company growth. The gap in research the authors found are that theory of internal communication is largely over 40 years old and possibly obsolete due to changes in organisation structures and the emergence of immensely disruptive technologies such as the Internet. The theory is tested on its validity with a company, which is organisationally open-minded and technically adept with technologies similar to modern communication technology.

Issue of study: With use of a case study based upon qualitative research, this paper examines structures, processes and methods for internal communication used within the company Trialbee AB during its foundation in 2010 and April 2014. The author’s interest lies within the change of internal communication structures that were needed for the employees to adapt to the different company growth phases. The interest lies specifically within the influence that organisation has, specifically the transition from informal to more formal communication channels, as well as the technological advantage that a company may have if the company product and internal communication systems are based on a similar technological background. The issue of study has been composed into two research questions:

1. What changes between formal and informal communication are needed for a small software company to break through its first growth barrier?

2. How does the employee's technical understanding of communication systems affect its implementation? 

Method: A qualitative case study with five semi-structured in-depth interviews has been conducted with the company Trialbee AB. The research approach is abductive starting from existing theories which is compared to the empirical findings

Conclusion: 
Contributions to the Academia: The findings are that internal communication confirmed to be crucial for the growth of the company. All interviewees had highly mutually affirmative perspective on what kind of internal communication systems were needed. Concerning the first research question, the informal communication was highly regarded and needed changes to adapt to company growth made strongly reactively to conserve the informal attitude. The second research question is in strong correlation with the first research question, as a technologically favourable and innovative company does indeed benefit from its internal knowledge, but does not utilize this to its full extent as traditional informal communication channels are regarded more highly. 

Contributions to the Practitioners: The reactive habit of adapting to company growth is a successful strategy as it keeps the initiating founders and employees in agreement. The informal communication methods are an important asset of Trialbee. The founders should further increase their knowledge on what communication problems will likely arise to be align with their intention to grow the company further and be sensitive towards upcoming crisis. Lastly, the change of the founders roles from a manager working in the company should further change to an entrepreneur working on the company so that the company, not only regarding internal communications, can function independently from its founders.}},
  author       = {{Pressfeldt, Carl-Oscar and Oudendijk, Sander}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Change of Internal Communications in a Growing Technology-Affine Company}},
  year         = {{2014}},
}