The processes surrounding the birth of organizations have been explained on the basis of structural contingency, resource dependency, population ecology, and institutional theories. In general, these theories view the role of communication and interpretation as largely unproblematic. We argue that strategically ambiguous messages play a key role in the birth of loosely coupled organizations. The successful birth is contingent on these messages being interpreted differently by key constituencies in the organization’s environment. Acase study is presented in support of this argument. STRATEGIC AMBIGUITY IN THE BIRTH OF A LOOSELY COUPLED ORGANIZATION The Case of a $50-Million Experiment Noshir S. Contractor Matthew C. Ehrlich University of Illinois at Urbana-Champaign In recent years, organizational researchers have expressed a growing interest in the emergence of organizations (e.g., Cameron, Kim, & Whetten, 1987; Covaleski & Dirsmith, 1988; Hambrick & D’Aveni, 1988; Katz & Gartner, 1988; Kimberly, 1979; Marrett, 1980; Romanelli, 1989; Saunders & Kreps, 1987; Singh, 1990; Weitzel & Jonsson, 1989). This interest is in response to past theory and research that “assumes the existence of a relatively fixed organi- zational structure and does not inquire into its etiology” (Kimberly, 1980, p. 3). Further, studying processes leading to the birth of organizations provides researchers the opportunity to examine how these “prehistory” processes mold and constrain the organization’s future structures and practices (Gersick, 1991; Pennings, 1980; Sarason, 1972). AUTHORS’ NOTE: Theprrparalion oJ/his manuscript was supported by a grant Jrom the University oJ Illinois Research Roard. Theaufhors wish 10 expresstheirappreciation to DanielAlpert, TheodoreBrown, Eric Eisenbcrg, Peter Mortge, and Everelf Rogers /or their help/u1 comments on an earlier draJt o/this manuscripf. Inquiries and requesls Jor reprints should be sent to Noshir S. Contracfor, 244 Lincoln Hall, Vtliversity o/Illinois al Urbana-Champaign, Urbana, IL 61801. Management Communication Quarterly, Vol. 6, No. 3, February 1993 2.51-281 0 1993 Sage Publications, Inc.