The Goal of Growth: Navigating the Founder’s Dilemma and Scaling Excellence

Dean A. Shepherd () and Holger Patzelt ()
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Dean A. Shepherd: University of Notre Dame, Mendoza College of Business
Holger Patzelt: Technical University of Munich, School of Management

Chapter 7 in The Entrepreneurial Compass, 2026, pp 51-59 from Springer

Abstract: Abstract As ventures expand, entrepreneurs must navigate the founder’s dilemma—the tension between seeking personal wealth and maintaining personal control. This chapter explores the dual nature of organizational slack; while financial slack fuels growth, it may also reduce incentives for entrepreneurial innovation. Growth is presented as a multidimensional phenomenon with varying indicators (sales, employees, profit) that may not always align. The authors trace the life cycle of organizational liabilities, from the protected honeymoon period to the high-risk liability of adolescence, where routines must be formalized. A vital dynamic capability introduced is organizational listening, which helps ventures sense opportunities through bidirectional communication with stakeholders. Scaling is defined as the “spreading of excellence” through accumulating, communicating, relocating, and connecting knowledge repositories. Finally, the chapter details how absorptive capacity facilitates international expansion and warns of the speed trap, where rapid growth can mask a lack of strategic fit.

Keywords: Dynamic Capabilities; Founder’s Dilemma; Liability of Adolescence; Organizational Listening; Organizational Slack; Scalability; Scaling (search for similar items in EconPapers)
Date: 2026
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DOI: 10.1007/978-3-032-36429-6_7

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