Organizational Thermodynamics: A Phase Transition Model of Value Resonance and Entropic Collapse in High-Growth Startups

Abstract

A recurring failure mode in high-growth startups is the progressive deterioration of organizational coherence traceable not to product failure or market dynamics but to value-misaligned senior leaders insulated from accountability by their own rank and compensation. This paper introduces Organizational Thermodynamics (OT), a formal framework modeling the scaling organization as an open thermodynamic system. The governing equation G = (U·V) − (S·T) captures free organizational energy as the net of purposive coupling force (U·V, institutional binding modulated by Value Resonance Coefficient V) minus entropic load (S·T, structural complexity scaled by growth velocity). When V turns negative in a high-rank leader, U·V turns negative, converting institutional architecture into a net entropy amplifier—a discontinuous collapse I term destructive sublimation. Two leading behavioral indicators—Agenda Engagement (AE) and Reward Centricity (RC)—are proposed as a composite early-warning index (EWI). Case vignette evidence from thirty-one technology startups (2015–2024, Series A–D) offers directional support: nine of eleven organizations (81.8%) experiencing destructive sublimation exhibited the AE↓ RC↑ pattern at least two quarters prior to visible deterioration. A multi-phase research agenda is proposed to underpin quantitative validation.

Keywords: Organizational Thermodynamics, Phase Transition, Latent Organizational Failure, Value Resonance Coefficient, Entropic Collapse, Startup Scaling

DOI: 10.54941/ahfe1008157