Entrepreneurship and Organised Crime

Entrepreneurship and Organised Crime

Entrepreneurs in Illegal Business

Petter Gottschalk

Entrepreneurship and Organised Crime provides a fresh and realistic insight into the problem of organised crime activity and the role of entrepreneurs in illegal business.

Chapter 2: Stage Models for Criminal Entrepreneurs

Petter Gottschalk

Subjects: business and management, entrepreneurship


‘Stages of growth’ models have been used widely in organisational research. These models describe the possible evolution of an organisation over time. In this book, several stage models for criminal organisations are developed. In one of the models, the stages are opportunity-based, activity-based, knowledge-based and strategy-based criminal organisations respectively. Such models may prove helpful to law enforcement agencies as they try to understand how entrepreneurs develop criminal organisations over time. Finckenauer (2005) suggested a distinction between certain crimes that may be extremely complex and highly organised in their commission, but which are not committed by criminal organisations, and true organised crime. Hagan (2006) suggested that ‘Organised Crime’ be used to refer to crime organisations, while ‘organised crime’ should refer to activities – crimes that often require a degree of organisation on the part of those committing them. According to him, not all ‘organised crime’ is committed by ‘Organised Crime’ groups. Both Finckenauer (2005) and Hagan (2006) have suggested that criminal organisations evolve over time. Building on their work as well as research by von Lampe (2005) and von Lampe and Johansen (2003), the first stages of growth model suggested for criminal organisations in this chapter is developed, which might be applied to determine the maturity level to which a criminal organisation is brought by the entrepreneur. Maturity is regarded as an indication of the efficiency and effectiveness with which a criminal organisation responds to environmental changes in a professional way. STAGES OF GROWTH MODELS Stages of growth models have been used...

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