The formation of breakaway organizations: Observations and a process model

Two qualitative studies examined the processes leading to the formation of breakaway organizations, which result when groups leave existing organizati ons to form new organizations. In the first study, analysis of interviews a t 11 organizations in which group exit occurred revealed that the process u nfolded in six stages: relative harmony, idea development, change, resistan ce, intense conflict, and exit. Five trigger events-introduction of conflic ting ideas, legitimizing them, alarm, polarization of views, and justificat ion-moved the participants through the group exit process. Study 2, conduct ed in three organizations in which group exit was avoided, revealed a trigg er harmonizing event instead of a polarization event and a final dissonant harmony stage, instead of exit. Implications for the exit/voice/loyalty/neg lect paradigm, the group studies literature, and organization theory in gen eral are discussed.