Given the pattern of managers’ responses with regard to the five organisational issues, firms
were classified into the following OLC stages: 25% of the companies were classified as Existence,
Survival (17%), Success (11%), Renewal (35%) and Decline (13%).
Contrary to what was found for SCPM3 maturity, the statistical analysis revealed that there
was a significant association between the current stage of the companies’ organisational life cycle
and their age (Chi-square sig. 0,003) and size (Chi-square sig. 0,000). This finding corroborates
Miller and Friesen’s (1984) findings that there is a relationship between a company's profile and its
stage of the OLC.
After the analysis and classification of SCPM3 maturity and the OLC, an investigation of the
relationship between maturity levels of SCPM3 and OLC was conducted. For this purpose, a
correspondence analysis technique was used. Hair et al. (2005) argue that correspondence analysis
consists of two basic steps: first, the construction of the contingency table to access the Chi-square
test and determine whether there was a non-random relationship between categorical variables, and
second, the construction of the perceptual map to analyse the pattern of associations.
The chi-square test (0,000) revealed that there is a conditional association between the level
of maturity of SCPM and the OLC. Based on this finding, the first research hypothesis (the
association between the maturity level of SCPM and the OLC) was not falsified, suggesting that
there is a relationship between the development of SCPM3 levels and the stages of the OLC.
To determine the specific nature of this relationship, the second step of the correspondence
analysis was conducted: the perceptual map. Hair et al. (2005) explain that the perceptual map is
based on the amount of observations for each variable (mass) and the singular values and inertia
extracted from each cell of the contingency table. It then represents the...