Funnelling Through the Stages of Organizational Growth

Abstract: In an ever-increasing digital environment, Stockholm's technology startup scene is thriving. A category of digital platforms packaged as subscription-based services, Software as a Service, or SaaS, has emerged as a trademark business model of successful tech startups. This paper aims to answer what distinguishes organizational growth at a fast-growing SaaS company through a qualitative case study with ten in-depth interviews at the firm Funnel. The organizational growth is understood through the theoretical lens of Greiner's growth phases, and Schein's three levels of culture are used to understand the company culture. The SaaS business model and its unique characteristics are also explained. The study concludes that a solid and cohesive company culture built on certain basic assumptions can help companies to mitigate crises throughout their respective growth journeys. Furthermore, the immense scalability of the SaaS business model makes organizational growth faster than in many other industries. There is currently a research gap within academia regarding to what extent the SaaS business model applies to Greiner's organizational growth phases, which this thesis intends to fill. Additionally, this thesis provides startups operating in similar fields to Funnel with valuable insights regarding how organizational growth can be achieved.