IDEAS home Printed from https://ideas.repec.org/a/eee/jbvent/v39y2024i1s0883902623000691.html
   My bibliography  Save this article

What is scaling?

Author

Listed:
  • Bohan, Sarah
  • Tippmann, Esther
  • Levie, Jonathan
  • Igoe, Josephine
  • Bowers, Blake

Abstract

As ‘scaling’ has gained significant attention from different stakeholders, multiple definitions have emerged, endangering the legitimacy of the area as a distinct field of inquiry. Using a mathematics perspective, we define scaling in the business context as a time-limited process of exponential growth. We then identify drivers of scaling and show that scaling for competitive advantage requires increasing returns to scale in input-output relationships (superlinear scaling). This is followed by the application of graph theory, supported with findings from a Delphi study, to demonstrate why scaling requires internal transformation. Finally, we discuss our definition's uniqueness, how it can be operationalized, and opportunities for future research.

Suggested Citation

  • Bohan, Sarah & Tippmann, Esther & Levie, Jonathan & Igoe, Josephine & Bowers, Blake, 2024. "What is scaling?," Journal of Business Venturing, Elsevier, vol. 39(1).
    • Handle: RePEc:eee:jbvent:v:39:y:2024:i:1:s0883902623000691
    DOI: 10.1016/j.jbusvent.2023.106355
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0883902623000691
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusvent.2023.106355?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. Besnik A. Krasniqi & Sameeksha Desai, 2016. "Institutional drivers of high-growth firms: country-level evidence from 26 transition economies," Small Business Economics, Springer, vol. 47(4), pages 1075-1094, December.
    2. Lu, Jinfeng & Dimov, Dimo, 2023. "A system dynamics modelling of entrepreneurship and growth within firms," Journal of Business Venturing, Elsevier, vol. 38(3).
    3. Jun Du & Yama Temouri, 2015. "High-growth firms and productivity: evidence from the United Kingdom," Small Business Economics, Springer, vol. 44(1), pages 123-143, January.
    4. Liang Chen & Noman Shaheer & Jingtao Yi & Sali Li, 2019. "The international penetration of ibusiness firms: Network effects, liabilities of outsidership and country clout," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(2), pages 172-192, March.
    5. Brett R. Smith & Geoffrey M. Kistruck & Benedetto Cannatelli, 2016. "The Impact of Moral Intensity and Desire for Control on Scaling Decisions in Social Entrepreneurship," Journal of Business Ethics, Springer, vol. 133(4), pages 677-689, February.
    6. Venâncio, Ana & Picoto, Winnie & Pinto, Inês, 2023. "Time-to-unicorn and digital entrepreneurial ecosystems," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    7. Daniel A. Levinthal & Brian Wu, 2010. "Opportunity costs and non‐scale free capabilities: profit maximization, corporate scope, and profit margins," Strategic Management Journal, Wiley Blackwell, vol. 31(7), pages 780-801, July.
    8. Gartner, William B., 1990. "What are we talking about when we talk about entrepreneurship?," Journal of Business Venturing, Elsevier, vol. 5(1), pages 15-28, January.
    9. Daniel Isenberg & Vincent Onyemah, 2016. "Fostering Scaleup Ecosystems for Regional Economic Growth (Innovations Case Narrative: Manizales-Mas and Scale Up Milwaukee)," Innovations: Technology, Governance, Globalization, MIT Press, vol. 11(1-2), pages 60-79, Winter-Sp.
    10. Sidney G. Winter & Gabriel Szulanski, 2001. "Replication as Strategy," Organization Science, INFORMS, vol. 12(6), pages 730-743, December.
    11. Rowe, Gene & Wright, George, 1999. "The Delphi technique as a forecasting tool: issues and analysis," International Journal of Forecasting, Elsevier, vol. 15(4), pages 353-375, October.
    12. 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.
    13. Taewon Kang, 2022. "Sources of variation in growth rate distribution: evidence from Korean, Japanese, and Chinese manufacturing firms," Applied Economics Letters, Taylor & Francis Journals, vol. 29(18), pages 1690-1695, October.
    14. Christian Busch & Harry Barkema, 2021. "From necessity to opportunity: Scaling bricolage across resource‐constrained environments," Strategic Management Journal, Wiley Blackwell, vol. 42(4), pages 741-773, April.
    15. 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.
    16. Manju Puri & Rebecca Zarutskie, 2012. "On the Life Cycle Dynamics of Venture-Capital- and Non-Venture-Capital-Financed Firms," Journal of Finance, American Finance Association, vol. 67(6), pages 2247-2293, December.
    17. Czinkota, Michael R. & Ronkainen, Ilkka A., 2005. "A forecast of globalization, international business and trade: report from a Delphi study," Journal of World Business, Elsevier, vol. 40(2), pages 111-123, May.
    18. Dean Shepherd & Johan Wiklund, 2009. "Are we Comparing Apples with Apples or Apples with Oranges? Appropriateness of Knowledge Accumulation across Growth Studies," Entrepreneurship Theory and Practice, , vol. 33(1), pages 105-123, January.
    19. Mihailova, Irina, 2023. "Business model adaptation for realized international scaling of born-digitals," Journal of World Business, Elsevier, vol. 58(2).
    20. Jonathan Levie & Erkko Autio, 2011. "Regulatory Burden, Rule of Law, and Entry of Strategic Entrepreneurs: An International Panel Study," Journal of Management Studies, Wiley Blackwell, vol. 48, pages 1392-1419, September.
    21. Mithani, Murad A., 2023. "Scaling digital and non-digital business models in foreign markets: The case of financial advice industry in the United States," Journal of World Business, Elsevier, vol. 58(4).
    22. 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).
    23. Van Lancker, Evy & Knockaert, Mirjam & Collewaert, Veroniek & Breugst, Nicola, 2023. "Preparing for scaling: A study on founder role evolution," Journal of Business Venturing, Elsevier, vol. 38(4).
    24. 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.
    25. Jing Zeng & Yunlu Yang & Soo Hee Lee, 2023. "Resource Orchestration and Scaling‐up of Platform‐Based Entrepreneurial Firms: The Logic of Dialectic Tuning," Journal of Management Studies, Wiley Blackwell, vol. 60(3), pages 605-638, May.
    26. Rudy Aernoudt, 2017. "Executive Forum: the scale-up gap: and how to address it," Venture Capital, Taylor & Francis Journals, vol. 19(4), pages 361-372, October.
    27. Timothy E. Ott & Kathleen M. Eisenhardt, 2020. "Decision weaving: Forming novel, complex strategy in entrepreneurial settings," Strategic Management Journal, Wiley Blackwell, vol. 41(12), pages 2275-2314, December.
    28. Xiaoyu Yu & Jiangyong Lu & Xiaomin Liu & Yihan Wang & Yilin Jia & Yi Su, 2021. "Fractal Characteristics of Discontinuous Growth of Digital Company: An Entrepreneurial Bricolage Perspective," Complexity, Hindawi, vol. 2021, pages 1-9, February.
    29. Sven-Olov Daunfeldt & Dan Johansson & Daniel Halvarsson, 2015. "Using the eurostat-OECD definition of high-growth firms: a cautionary note," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 4(1), pages 50-56, April.
    30. Peter Kalum Schou, 2023. "Coming Apart While Scaling Up – Adoption of Logics and the Fragmentation of Organizational Identity in Science‐Based Ventures," Journal of Management Studies, Wiley Blackwell, vol. 60(3), pages 688-721, May.
    31. Belitski, Maksim & Martin, Jeff & Stettler, Tatiana & Wales, William, 2023. "Organizational scaling: The role of knowledge spillovers in driving multinational enterprise persistent rapid growth," Journal of World Business, Elsevier, vol. 58(5).
    32. Autio, Erkko & Rannikko, Heikki, 2016. "Retaining winners: Can policy boost high-growth entrepreneurship?," Research Policy, Elsevier, vol. 45(1), pages 42-55.
    33. Nason, Robert S. & Wiklund, Johan & McKelvie, Alexander & Hitt, Michael & Yu, Wei, 2019. "Orchestrating boundaries: The effect of R&D boundary permeability on new venture growth," Journal of Business Venturing, Elsevier, vol. 34(1), pages 63-79.
    34. Alicia DeSantola, 2021. "Scaling considerations for the social franchising model," Journal of Organization Design, Springer;Organizational Design Community, vol. 10(3), pages 99-102, December.
    35. Alex Coad & Julian S. Frankish & David J. Storey, 2020. "Too fast to live? Effects of growth on survival across the growth distribution," Journal of Small Business Management, Taylor & Francis Journals, vol. 58(3), pages 544-571, May.
    36. Candida G. Brush & Sarah Y. Cooper, 2012. "Female entrepreneurship and economic development: An international perspective," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 24(1-2), pages 1-6, January.
    37. 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.
    38. 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.
    39. Marco van Gelderen & Johan Wiklund & Jeffery S. McMullen, 2021. "Entrepreneurship in the Future: A Delphi Study of ETP and JBV Editorial Board Members," Entrepreneurship Theory and Practice, , vol. 45(5), pages 1239-1275, September.
    40. Chandler, Gaylen N. & McKelvie, Alexander & Davidsson, Per, 2009. "Asset specificity and behavioral uncertainty as moderators of the sales growth -- Employment growth relationship in emerging ventures," Journal of Business Venturing, Elsevier, vol. 24(4), pages 373-387, July.
    41. Snihur, Yuliya & Clarysse, Bart, 2022. "Sowing the seeds of failure: Organizational identity dynamics in new venture pivoting," Journal of Business Venturing, Elsevier, vol. 37(1).
    42. Tippmann, Esther & Ambos, Tina C. & Del Giudice, Manlio & Monaghan, Sinéad & Ringov, Dimo, 2023. "Scale-ups and scaling in an international business context," Journal of World Business, Elsevier, vol. 58(1).
    43. Dean A. Shepherd & Holger Patzelt, 2022. "A Call for Research on the Scaling of Organizations and the Scaling of Social Impact," Entrepreneurship Theory and Practice, , vol. 46(2), pages 255-268, March.
    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. Audretsch, David B. & Belitski, Maksim & Theodoraki, Christina, 2024. "Micro and macro factors of firm scaling," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    2. Tippmann, Esther & Ambos, Tina C. & Del Giudice, Manlio & Monaghan, Sinéad & Ringov, Dimo, 2023. "Scale-ups and scaling in an international business context," Journal of World Business, Elsevier, vol. 58(1).
    3. Iurkov, Viacheslav & Koval, Mariia & Zakaryan, Arusyak, 2023. "The role of network community characteristics for firms' rapid business scaling," Technological Forecasting and Social Change, Elsevier, vol. 196(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. 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).
    6. 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).
    7. 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.
    8. Somaya, Deepak & You, Jingya, 2024. "Scalability, venture capital availability, and unicorns: Evidence from the valuation and timing of IPOs," Journal of Business Venturing, Elsevier, vol. 39(1).
    9. Simon C. Parker & Thomas Åstebro & David B Audretsch & Robert Blackburn & Andrew Burke & Alex Coad & Marc Cowling & Per Davidsson & Michael Fritsch & Francis Greene & Paul D. Reynolds & Roy Thurik, 2024. "“Remembering David J Storey, a pioneer of the entrepreneurship field”," Small Business Economics, Springer, vol. 62(1), pages 1-21, January.
    10. Márta Bisztray & Francesca de Nicola & Balázs Muraközy, 2023. "High-growth firms’ contribution to aggregate productivity growth," Small Business Economics, Springer, vol. 60(2), pages 771-811, February.
    11. Mihailova, Irina, 2023. "Business model adaptation for realized international scaling of born-digitals," Journal of World Business, Elsevier, vol. 58(2).
    12. Sanasi, Silvia & Ghezzi, Antonio & Cavallo, Angelo, 2023. "What happens after market validation? Experimentation for scaling in technology-based startups," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    13. Erhardt, Eva Christine, 2018. "Firm performance after high growth: A comparison of absolute and relative growth measures," MPRA Paper 88077, University Library of Munich, Germany.
    14. Cyrine Ben-Hafaïedh & Anaïs Hamelin, 2023. "Questioning the Growth Dogma: A Replication Study," Entrepreneurship Theory and Practice, , vol. 47(2), pages 628-647, March.
    15. Raysa Geaquinto Rocha & João J. Ferreira, 2022. "Gazelles (High-Growth) Companies: a Bibliometric Science Map of the Field," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(4), pages 2911-2934, December.
    16. 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.
    17. Fabio Bertoni & Massimo Colombo & Luca Grilli, 2013. "Venture capital investor type and the growth mode of new technology-based firms," Small Business Economics, Springer, vol. 40(3), pages 527-552, April.
    18. Crawford, G. Christopher & Aguinis, Herman & Lichtenstein, Benyamin & Davidsson, Per & McKelvey, Bill, 2015. "Power law distributions in entrepreneurship: Implications for theory and research," Journal of Business Venturing, Elsevier, vol. 30(5), pages 696-713.
    19. Liang Chen & Mengmeng Wang & Lin Cui & Sali Li, 2021. "Experience base, strategy‐by‐doing and new product performance," Strategic Management Journal, Wiley Blackwell, vol. 42(7), pages 1379-1398, July.
    20. Katherine Tatarinov & Tina C. Ambos & Feichin Ted Tschang, 2023. "Scaling digital solutions for wicked problems: Ecosystem versatility," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(4), pages 631-656, June.

    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:jbvent:v:39:y:2024:i:1:s0883902623000691. 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/jbusvent .

    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.