IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v186y2025ics0148296324004910.html
   My bibliography  Save this article

Looking inside the ‘black box’ of digital firm scaling: An ethnographically informed conceptualisation

Author

Listed:
  • Brown, Ross
  • Mawson, Suzanne
  • Rocha, Augusto
  • Rowe, Alex

Abstract

In recent years there has been an upsurge of interest in firm scaling. Owing to the fact our conceptual and theoretical grasp of this phenomenon remains under-developed, this paper offers a novel conceptualisation of the scaling process based on an in-depth ethnographic study of a London-based digital Fintech. Scaling involves deliberately enacting and surmounting a series of managerial challenges such as human capital re-positioning, business model reconfiguration, customer acquisition and the acquisition of external growth capital. Our theoretical contribution views the micro-foundations of scaling as a distinctive relational process-based phenomenon. Under the conceptual framework posited, entrepreneurial human capital and successful scaling are inextricably interwoven. Entrepreneurial founders and managers are pivotal for orchestrating scaling and our conceptualisation builds upon the trigger point model of firm development, which reinforces the primacy of entrepreneurial agency for optimising growth triggers.

Suggested Citation

  • Brown, Ross & Mawson, Suzanne & Rocha, Augusto & Rowe, Alex, 2025. "Looking inside the ‘black box’ of digital firm scaling: An ethnographically informed conceptualisation," Journal of Business Research, Elsevier, vol. 186(C).
  • Handle: RePEc:eee:jbrese:v:186:y:2025:i:c:s0148296324004910
    DOI: 10.1016/j.jbusres.2024.114987
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296324004910
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jbusres.2024.114987?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. David J. Teece & Greg Linden, 2017. "Business models, value capture, and the digital enterprise," Journal of Organization Design, Springer;Organizational Design Community, vol. 6(1), pages 1-14, December.
    2. Jean–François Hennart, 2014. "The Accidental Internationalists: A Theory of Born Globals," Entrepreneurship Theory and Practice, , vol. 38(1), pages 117-135, January.
    3. Ramana Nanda & William R. Kerr, 2015. "Financing Innovation," Annual Review of Financial Economics, Annual Reviews, vol. 7(1), pages 445-462, December.
    4. Ben Spigel, 2022. "Examining the cohesiveness and nestedness entrepreneurial ecosystems: evidence from British FinTechs," Small Business Economics, Springer, vol. 59(4), pages 1381-1399, December.
    5. Dean A. Shepherd & Johan Wiklund & Dimo Dimov, 2021. "Envisioning Entrepreneurship’s Future: Introducing Me-Search and Research Agendas," Entrepreneurship Theory and Practice, , vol. 45(5), pages 955-966, September.
    6. Mula, Claire & Zybura, Nora & Hipp, Thomas, 2024. "From digitalized start-up to scale-up: Opening the black box of scaling in digitalized firms towards a scaling process framework," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    7. Reuben Vinnell & R. T. Hamilton, 1999. "A Historical Perspective on Small Firm Development," Entrepreneurship Theory and Practice, , vol. 23(4), pages 5-18, July.
    8. Nambisan, Satish & Wright, Mike & Feldman, Maryann, 2019. "The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes," Research Policy, Elsevier, vol. 48(8), pages 1-1.
    9. repec:zbw:bofrdp:urn:nbn:fi:bof-201512141480 is not listed on IDEAS
    10. Garnsey, Elizabeth, 1998. "A Theory of the Early Growth of the Firm," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 7(3), pages 523-556, September.
    11. David Audretsch & Maksim Belitski & Christina Theodoraki, 2024. "Micro and macro factors of firm scaling," Post-Print hal-04676733, HAL.
    12. Coad, Alexander & Domnick, Clemens & Flachenecker, Florian & Harasztosi, Peter & Janiri, Mario Lorenzo & Pál, Rozália & Teruel Carrizosa, Mercedes, 2021. "Do capacity constraints trigger high growth for enterprises?," EIB Working Papers 2021/08, European Investment Bank (EIB).
    13. Michael Ewens & Matt Marx, 2018. "Founder Replacement and Startup Performance," The Review of Financial Studies, Society for Financial Studies, vol. 31(4), pages 1532-1565.
    14. Coviello, Nicole & Autio, Erkko & Nambisan, Satish & Patzelt, Holger & Thomas, Llewellyn D.W., 2024. "Organizational scaling, scalability, and scale-up: Definitional harmonization and a research agenda," Journal of Business Venturing, Elsevier, vol. 39(5).
    15. Elco Van Burg & Joep Cornelissen & Wouter Stam & Sarah Jack, 2022. "Advancing Qualitative Entrepreneurship Research: Leveraging Methodological Plurality for Achieving Scholarly Impact," Entrepreneurship Theory and Practice, , vol. 46(1), pages 3-20, January.
    16. Martine Hlady-Rispal & Alain Fayolle & William Gartner, 2021. "In search of creative qualitative methods to capture current entrepreneurship research challenges," Post-Print hal-03983156, HAL.
    17. Jonathan Levie & Benyamin B. Lichtenstein, 2010. "A Terminal Assessment of Stages Theory: Introducing a Dynamic States Approach to Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 34(2), pages 317-350, March.
    18. Sinéad Monaghan & Esther Tippmann & Nicole Coviello, 2020. "Born digitals: Thoughts on their internationalization and a research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(1), pages 11-22, February.
    19. Gianluigi Giustiziero & Tobias Kretschmer & Deepak Somaya & Brian Wu, 2023. "Hyperspecialization and hyperscaling: A resource‐based theory of the digital firm," Strategic Management Journal, Wiley Blackwell, vol. 44(6), pages 1391-1424, June.
    20. Audretsch, David B. & Belitski, Maksim & Theodoraki, Christina, 2024. "Micro and macro factors of firm scaling," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    21. Mihailova, Irina, 2023. "Business model adaptation for realized international scaling of born-digitals," Journal of World Business, Elsevier, vol. 58(2).
    22. Clarysse, Bart & Moray, Nathalie, 2004. "A process study of entrepreneurial team formation: the case of a research-based spin-off," Journal of Business Venturing, Elsevier, vol. 19(1), pages 55-79, January.
    23. Gerasymenko, Violetta & Arthurs, Jonathan D., 2014. "New insights into venture capitalists' activity: IPO and time-to-exit forecast as antecedents of their post-investment involvement," Journal of Business Venturing, Elsevier, vol. 29(3), pages 405-420.
    24. Oecd, 2015. "Disruptive Innovation in the Financial Sector," OECD Roundtables on Competition Policy Papers 179, OECD Publishing.
    25. Josh Lerner & Ramana Nanda, 2020. "Venture Capital's Role in Financing Innovation: What We Know and How Much We Still Need to Learn," Journal of Economic Perspectives, American Economic Association, vol. 34(3), pages 237-261, Summer.
    26. Teece, David J., 2016. "Dynamic capabilities and entrepreneurial management in large organizations: Toward a theory of the (entrepreneurial) firm," European Economic Review, Elsevier, vol. 86(C), pages 202-216.
    27. David Audretsch & Maksim Belitski & Christina Theodoraki, 2024. "Micro and macro factors of firm scaling," Post-Print hal-04677871, HAL.
    28. Martine Hlady-Rispal & Alain Fayolle & William B. Gartner, 2021. "In search of creative qualitative methods to capture current entrepreneurship research challenges," Journal of Small Business Management, Taylor & Francis Journals, vol. 59(5), pages 887-912, September.
    29. Mie Augier & David J. Teece, 2007. "Dynamic capabilities and multinational enterprise: Penrosean insights and omissions," Management International Review, Springer, vol. 47(2), pages 175-192, March.
    30. repec:zbw:bofrdp:2015_028 is not listed on IDEAS
    31. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    32. Joep P. Cornelissen & Rodolphe Durand, 2014. "Moving Forward: Developing Theoretical Contributions in Management Studies," Journal of Management Studies, Wiley Blackwell, vol. 51(6), pages 995-1022, September.
    33. Palmié, Maximilian & Parida, Vinit & Mader, Anna & Wincent, Joakim, 2023. "Clarifying the scaling concept: A review, definition, and measure of scaling performance and an elaborate agenda for future research," Journal of Business Research, Elsevier, vol. 158(C).
    34. Johannes Gartner & Daniela Maresch & Robert Tierney, 2024. "The key to scaling in the digital era: Simultaneous automation, individualization and interdisciplinarity," Journal of Small Business Management, Taylor & Francis Journals, vol. 62(2), pages 628-655, March.
    35. Donald F. Kuratko & David B. Audretsch, 2022. "The future of entrepreneurship: the few or the many?," Small Business Economics, Springer, vol. 59(1), pages 269-278, June.
    36. Zeki Simsek & Justin J. P. Jansen & Alessandro Minichilli & Alejandro Escriba-Esteve, 2015. "Strategic Leadership and Leaders in Entrepreneurial Contexts: A Nexus for Innovation and Impact Missed?," Journal of Management Studies, Wiley Blackwell, vol. 52(4), pages 463-478, June.
    37. Maksim Belitski & Tatiana Stettler & William Wales & Jeff Martin, 2023. "Speed and Scaling: An Investigation of Accelerated Firm Growth," Journal of Management Studies, Wiley Blackwell, vol. 60(3), pages 639-687, May.
    38. Ross Brown & Suzanne Mawson & Colin Mason, 2017. "Myth-busting and entrepreneurship policy: the case of high growth firms," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 29(5-6), pages 414-443, May.
    39. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    40. Stallkamp, Maximilian & Hunt, Richard A. & Schotter, Andreas P.J., 2022. "Scaling, fast and slow: The internationalization of digital ventures," Journal of Business Research, Elsevier, vol. 146(C), pages 95-106.
    41. Maria Tunberg & Johan Gaddefors, 2022. "Small Firm Growth: The Unfolding of a Trigger Point," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 30(02), pages 161-184, June.
    42. Kiss, Andreea N. & Danis, Wade M. & Cavusgil, S. Tamer, 2012. "International entrepreneurship research in emerging economies: A critical review and research agenda," Journal of Business Venturing, Elsevier, vol. 27(2), pages 266-290.
    43. Tina C. Ambos & Julian Birkinshaw, 2010. "How Do New Ventures Evolve? An Inductive Study of Archetype Changes in Science-Based Ventures," Organization Science, INFORMS, vol. 21(6), pages 1125-1140, December.
    44. Justin J. P. Jansen & Ciaran Heavey & Tom J. M. Mom & Zeki Simsek & Shaker A. Zahra, 2023. "Scaling‐up: Building, Leading and Sustaining Rapid Growth Over Time," Journal of Management Studies, Wiley Blackwell, vol. 60(3), pages 581-604, May.
    45. Barringer, Bruce R. & Jones, Foard F. & Neubaum, Donald O., 2005. "A quantitative content analysis of the characteristics of rapid-growth firms and their founders," Journal of Business Venturing, Elsevier, vol. 20(5), pages 663-687, September.
    46. van Rijnsoever, Frank J., 2020. "Meeting, mating, and intermediating: How incubators can overcome weak network problems in entrepreneurial ecosystems," Research Policy, Elsevier, vol. 49(1).
    47. Elina Jaakkola, 2020. "Designing conceptual articles: four approaches," AMS Review, Springer;Academy of Marketing Science, vol. 10(1), pages 18-26, June.
    48. Hambrick, Donald C. & Crozier, Lynn M., 1985. "Stumblers and stars in the management of rapid growth," Journal of Business Venturing, Elsevier, vol. 1(1), pages 31-45.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bohan, Sarah & Tippmann, Esther & Levie, Jonathan & Igoe, Josephine & Bowers, Blake, 2024. "What is scaling?," Journal of Business Venturing, Elsevier, vol. 39(1).
    2. Justin J. P. Jansen & Ciaran Heavey & Tom J. M. Mom & Zeki Simsek & Shaker A. Zahra, 2023. "Scaling‐up: Building, Leading and Sustaining Rapid Growth Over Time," Journal of Management Studies, Wiley Blackwell, vol. 60(3), pages 581-604, May.
    3. Marquardt, Leon & Harima, Aki, 2024. "Digital boundary spanning in the evolution of entrepreneurial ecosystems: A dynamic capabilities perspective," Journal of Business Research, Elsevier, vol. 182(C).
    4. Gartner, Johannes & Moro, Andrea, 2024. "C-level managers and born-digitals' scaling: The case of Initial Coin Offerings (ICOs)," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    5. Shaker A. Zahra & Olga Petricevic & Yadong Luo, 2022. "Toward an action-based view of dynamic capabilities for international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 583-600, June.
    6. Noorliza Karia, 2022. "Antecedents and Consequences of Environmental Capability towards Sustainability and Competitiveness," Sustainability, MDPI, vol. 14(19), pages 1-16, September.
    7. Shi, Xianwei & Liang, Xingkun & Luo, Yining, 2023. "Unpacking the intellectual structure of ecosystem research in innovation studies," Research Policy, Elsevier, vol. 52(6).
    8. Pietro Borsano & Veronica Marozzo & Marco Bonaglia & Alberto Minin & Antonio Crupi, 2024. "Digital transformation and digital dynamic capabilities improvement in low-medium technology sector: evidence from Thai family firms," Asian Business & Management, Palgrave Macmillan, vol. 23(5), pages 683-712, November.
    9. Buccieri, Dominic & Javalgi, Raj G. & Cavusgil, Erin, 2020. "International new venture performance: Role of international entrepreneurial culture, ambidextrous innovation, and dynamic marketing capabilities," International Business Review, Elsevier, vol. 29(2).
    10. Coviello, Nicole & Autio, Erkko & Nambisan, Satish & Patzelt, Holger & Thomas, Llewellyn D.W., 2024. "Organizational scaling, scalability, and scale-up: Definitional harmonization and a research agenda," Journal of Business Venturing, Elsevier, vol. 39(5).
    11. A. Rebecca Reuber & Esther Tippmann & Sinéad Monaghan, 2021. "Global scaling as a logic of multinationalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(6), pages 1031-1046, August.
    12. Friesenbichler, Klaus S. & Hoelzl, Werner, 2022. "Firm-growth and Functional Strategic Domains: Exploratory evidence for differences between frontier and catching-up economies," Journal of Economics and Business, Elsevier, vol. 119(C).
    13. Muhammad Farooq Islam & Ozge Can, 2024. "Integrating digital and sustainable entrepreneurship through business models: a bibliometric analysis," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 14(1), pages 1-18, December.
    14. FeCheng Ma & Farhan Khan & Kashif Ullah Khan & Si XiangYun, 2021. "Investigating the Impact of Information Technology, Absorptive Capacity, and Dynamic Capabilities on Firm Performance: An Empirical Study," SAGE Open, , vol. 11(4), pages 21582440211, November.
    15. Hélène Laurell & Leona Achtenhagen & Svante Andersson, 2017. "The changing role of network ties and critical capabilities in an international new venture’s early development," International Entrepreneurship and Management Journal, Springer, vol. 13(1), pages 113-140, March.
    16. Hock-Doepgen, Marianne & Clauss, Thomas & Kraus, Sascha & Cheng, Cheng-Feng, 2021. "Knowledge management capabilities and organizational risk-taking for business model innovation in SMEs," Journal of Business Research, Elsevier, vol. 130(C), pages 683-697.
    17. Gala, Kaushik & Schwab, Andreas & Mueller, Brandon A., 2024. "Star entrepreneurs on digital platforms: Heavy-tailed performance distributions and their generative mechanisms," Journal of Business Venturing, Elsevier, vol. 39(1).
    18. Selene Pennetta & Francesco Anglani & Carmen Reaiche & Stephen Boyle, 2024. "Mapping the Field of Entrepreneurial Versus Managerial Abilities: A New Trend of Dynamic Capabilities-A Bibliometric Analysis," SAGE Open, , vol. 14(1), pages 21582440241, March.
    19. Kroh, Julia & Globocnik, Dietfried & Schultz, Carsten & Holdhof, Frederike & Salomo, Søren, 2024. "Micro-foundations of digital innovation capability – A mixed method approach to develop and validate a multi-dimensional measurement instrument," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    20. Gregory Ludwig & Jon Pemberton, 2011. "A managerial perspective of dynamic capabilities in emerging markets: The case of the Russian steel industry," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 16(3), pages 215-236.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:186:y:2025:i:c:s0148296324004910. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.