Organizational growth: A study of the practical relationship between context, organizational capabilities, and leadership

Abstract

Purpose: To explore a process of organizational growth, considering different intervening factors: the institutional context, organizational capabilities, and the roles of leaders. Originality/value: From the literature point of view, the study contributes by explaining the practical process of linking different institutional pressures (regulatory, normative, and cognitive) that led to growth when combined with organizational dispositions and better leadership preparation to face challenges. For practice purposes, it highlights the importance of alignment between leaders and the effect of training when they respond to the expectations of the institutional context. Design/methodology/approach: A case study of the singular credit cooperatives affiliated with Central Sicredi PR/SP/RJ was carried out in which the practices were analyzed according to the interpretations of those involved. Documents were collected, and 24 executives from three levels of ten cooperatives were interviewed. An inductive content analysis was performed, and the themes were cataloged according to their recurrence. Findings: A dynamic explanation emerged according to which contextual pressure acted as a catalyst for the transformation of the practice through learning and the evolution of the interaction between upper and middle management in a more agile decision-making process. It also generated innovations and led to the optimized delivery of value, expected by the market, customers, and society in general. Assertive and responsive decision-making developed organizational competencies for differentiated growth.