The Dynamics of Organizational Routines in a Startup: The Ereda Model

We propose a model of the dynamics of organizational routines developed from a three-year qualitative grounded theory study in a startup web-based open source technology organization. At the micro level, the model describes five primary responses to newly formed routines: extension, replacement, elucidation, distortion, and avoidance (EREDA). Each mode is determined by both the degree of comprehension and the perceived value, and we propose that interrelated cycles of learning and forgetting processes – what we label as knowledge shaping – may help explain the variation of routines over time. We draw implications from these findings for theory and practice and offer suggestions for future research on the dynamics of organizational routines.