Processual Formalisation in Venture Growth

Abstract

This study examines how startups formalise as they scale without losing adaptability. Existing accounts
depict formalisation as a linear progression from informality to professionalism. An integrative review
of 63 studies across organisation theory, entrepreneurship, and process research reveals a more
cyclical and provisional dynamic. Four findings emerge: formalisation unfolds in loops rather than
stages; artefacts matter less in design than in use; temporal rhythms act as a key design lever; and
institutional and sociomaterial pressures shape adoption and endurance. Synthesising these insights,
the study develops a framework that crosses artefact use (enabling vs. coercive; interactive vs.
diagnostic) with temporal pacing (flexible vs. rigid), generating four trajectories: scaffolding, focused
coordination, symbolic drift, and bureaucratic entrenchment. Theoretically, the study reframes
formalisation as scaffolding and integrates previously fragmented literatures. Practically, it offers a
diagnostic tool to help founders and investors calibrate their structures to strike a balance between
discipline and agility.