IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v202y2024ics0040162524001082.html
   My bibliography  Save this article

Micro and macro factors of firm scaling

Author

Listed:
  • Audretsch, David B.
  • Belitski, Maksim
  • Theodoraki, Christina

Abstract

While firm scaling has been overlooked in previous management literature, this study provides an in-depth examination of the micro- and macro-level factors that enhance firm scaling. Viewing firm size, age, and scaling in prior period as micro factors of scaling, such as foreign employees as potentially rich international knowledge sources as well as regional economic development, we draw attention to the likelihood of firm scaling using panel data spanning 971,504 UK-based firms and 9,220,892 firm-year observations during 2002–2017. Our results show that (a) firm age decreases the likelihood of scaling, while firm size and scaling in prior period enhances the likelihood of scaling, (b) firms in regions with higher economic development are more likely to scale while the effect of localized knowledge spillovers from foreign employees on firm scaling depends on firm size.

Suggested Citation

  • Audretsch, David B. & Belitski, Maksim & Theodoraki, Christina, 2024. "Micro and macro factors of firm scaling," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    • Handle: RePEc:eee:tefoso:v:202:y:2024:i:c:s0040162524001082
    DOI: 10.1016/j.techfore.2024.123312
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162524001082
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2024.123312?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. Frédéric Delmar & Johan Wiklund, 2008. "The Effect of Small Business Managers’ Growth Motivation on Firm Growth: A Longitudinal Study," Entrepreneurship Theory and Practice, , vol. 32(3), pages 437-457, May.
    3. David Audretsch & Maksim Belitski & Sameeksha Desai, 2015. "Entrepreneurship and economic development in cities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 55(1), pages 33-60, October.
    4. 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.
    5. David B. Audretsch & Maksim Belitski, 2021. "Towards an entrepreneurial ecosystem typology for regional economic development: the role of creative class and entrepreneurship," Regional Studies, Taylor & Francis Journals, vol. 55(4), pages 735-756, April.
    6. Zoltán J. Ács & Erkko Autio & László Szerb, 2015. "National Systems of Entrepreneurship: Measurement issues and policy implications," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 28, pages 523-541, Edward Elgar Publishing.
    7. Burgelman, Robert A., 2002. "Strategy as Vector and the Inertia of Co-evolutionary Lock-in," Research Papers 1745, Stanford University, Graduate School of Business.
    8. Martin Carree & André van Stel & Roy Thurik & Sander Wennekers, 2007. "The Relation between Economic Development and Business Ownership revisited," Tinbergen Institute Discussion Papers 07-022/3, Tinbergen Institute.
    9. Martin Carree & André Van Stel & Roy Thurik & Sander Wennekers, 2007. "The relationship between economic development and business ownership revisited," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 19(3), pages 281-291, May.
    10. Roper, Stephen & Du, Jun & Love, James H., 2008. "Modelling the innovation value chain," Research Policy, Elsevier, vol. 37(6-7), pages 961-977, July.
    11. Joern H. Block & Massimo G. Colombo & Douglas J. Cumming & Silvio Vismara, 2018. "New players in entrepreneurial finance and why they are there," Small Business Economics, Springer, vol. 50(2), pages 239-250, February.
    12. Douglas Cumming & Michele Meoli & Silvio Vismara, 2021. "Does equity crowdfunding democratize entrepreneurial finance?," Small Business Economics, Springer, vol. 56(2), pages 533-552, February.
    13. Shige Makino & Andrew Delios, 1996. "Local Knowledge Transfer and Performance: Implications for Alliance Formation in Asia," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(5), pages 905-927, December.
    14. Henrik Bresman, 2010. "External Learning Activities and Team Performance: A Multimethod Field Study," Organization Science, INFORMS, vol. 21(1), pages 81-96, February.
    15. David B Audretsch & Maksim Belitski, 2022. "The knowledge spillover of innovation [Resource and output trends in the United States since 1870]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 31(6), pages 1329-1357.
    16. David B. Audretsch & Maksim Belitski, 2017. "Entrepreneurial ecosystems in cities: establishing the framework conditions," The Journal of Technology Transfer, Springer, vol. 42(5), pages 1030-1051, October.
    17. Brush, Candida G. & Ceru, Dennis J. & Blackburn, Robert, 2009. "Pathways to entrepreneurial growth: The influence of management, marketing, and money," Business Horizons, Elsevier, vol. 52(5), pages 481-491, September.
    18. Sven-Olov Daunfeldt & Daniel Halvarsson, 2015. "Are high-growth firms one-hit wonders? Evidence from Sweden," Small Business Economics, Springer, vol. 44(2), pages 361-383, February.
    19. Dunne, Paul & Hughes, Alan, 1994. "Age, Size, Growth and Survival: UK Companies in the 1980s," Journal of Industrial Economics, Wiley Blackwell, vol. 42(2), pages 115-140, June.
    20. Alex Coad & Sven-Olov Daunfeldt & Werner Hölzl & Dan Johansson & Paul Nightingale, 2014. "High-growth firms: introduction to the special section," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 23(1), pages 91-112, February.
    21. Zoltán J. Ács & Pontus Braunerhjelm & David B. Audretsch & Bo Carlsson, 2015. "The knowledge spillover theory of entrepreneurship," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 7, pages 129-144, Edward Elgar Publishing.
    22. Sven-Olov Daunfeldt & Niklas Elert & Dan Johansson, 2016. "Are high-growth firms overrepresented in high-tech industries?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 25(1), pages 1-21.
    23. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    24. Andy Lockett & Johan Wiklund & Per Davidsson & Sourafel Girma, 2011. "Organic and Acquisitive Growth: Re‐examining, Testing and Extending Penrose's Growth Theory," Journal of Management Studies, Wiley Blackwell, vol. 48(1), pages 48-74, January.
    25. Yang, Zhihao & Hong, Junjie & Wang, Xuan, 2022. "Environmental spillovers in international joint ventures: Evidence from Chinese industrial firms," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    26. Ginn, Charles W. & Sexton, Donald L., 1990. "A comparison of the personality type dimensions of the 1987 Inc. 500 company founders/CEOs with those of slower-growth firms," Journal of Business Venturing, Elsevier, vol. 5(5), pages 313-326, September.
    27. 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).
    28. F. H. Knight, 1921. "Cost of Production and Price over Long and Short Periods," Journal of Political Economy, University of Chicago Press, vol. 29(4), pages 304-304.
    29. Autio, Erkko & Rannikko, Heikki, 2016. "Retaining winners: Can policy boost high-growth entrepreneurship?," Research Policy, Elsevier, vol. 45(1), pages 42-55.
    30. Ron Boschma, 2005. "Editorial: Role of Proximity in Interaction and Performance: Conceptual and Empirical Challenges," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 41-45.
    31. Karen J. Jansen, 2004. "From Persistence to Pursuit: A Longitudinal Examination of Momentum During the Early Stages of Strategic Change," Organization Science, INFORMS, vol. 15(3), pages 276-294, June.
    32. 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.
    33. Audretsch, David Bruce & Belitski, Maksim & Guerrero, Maribel, 2023. "Sustainable orientation management and institutional quality: Looking into European entrepreneurial innovation ecosystems," Technovation, Elsevier, vol. 124(C).
    34. Francesca Lotti & Enrico Santarelli & Marco Vivarelli, 2003. "Does Gibrat's Law hold among young, small firms?," Journal of Evolutionary Economics, Springer, vol. 13(3), pages 213-235, August.
    35. Pekka Stenholm & Zoltán J. Ács & Robert Wuebker, 2015. "Exploring country-level institutional arrangements on the rate and type of entrepreneurial activity," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 20, pages 387-404, Edward Elgar Publishing.
    36. Sven-Olov Daunfeldt & Niklas Elert, 2013. "When is Gibrat’s law a law?," Small Business Economics, Springer, vol. 41(1), pages 133-147, June.
    37. Donald F. Kuratko & Michael H. Morris, 2018. "Examining the Future Trajectory of Entrepreneurship," Journal of Small Business Management, Taylor & Francis Journals, vol. 56(1), pages 11-23, January.
    38. 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.
    39. Onwuegbuzie, Henrietta N. & Mafimisebi, Oluwasoye P., 2021. "Global relevance of scaling African indigenous entrepreneurship," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    40. David Audretsch & Maksim Belitski, 2013. "The missing pillar: the creativity theory of knowledge spillover entrepreneurship," Small Business Economics, Springer, vol. 41(4), pages 819-836, December.
    41. José Calvo, 2006. "Testing Gibrat’s Law for Small, Young and Innovating Firms," Small Business Economics, Springer, vol. 26(2), pages 117-123, March.
    42. Danny Miller & Peter H. Friesen, 1978. "Archetypes of Strategy Formulation," Management Science, INFORMS, vol. 24(9), pages 921-933, May.
    43. Tzeng, Cheng-Hua, 2018. "How foreign knowledge spillovers by returnee managers occur at domestic firms: An institutional theory perspective," International Business Review, Elsevier, vol. 27(3), pages 625-641.
    44. Siegel, Robin & Siegel, Eric & Macmillan, Ian C., 1993. "Characteristics distinguishing high-growth ventures," Journal of Business Venturing, Elsevier, vol. 8(2), pages 169-180, March.
    45. 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.
    46. Allan O’Connor & Erik Stam & Fiona Sussan & David B. Audretsch, 2018. "Entrepreneurial Ecosystems: The Foundations of Place-based Renewal," International Studies in Entrepreneurship, in: Allan O'Connor & Erik Stam & Fiona Sussan & David B. Audretsch (ed.), Entrepreneurial Ecosystems, pages 1-21, Springer.
    47. 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.
    48. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-640, June.
    49. Maksim Belitski & Sameeksha Desai, 2021. "Female ownership, firm age and firm growth: a study of South Asian firms," Asia Pacific Journal of Management, Springer, vol. 38(3), pages 825-855, September.
    50. Antonio Messeni Petruzzelli, 2014. "Balancing knowledge exploration and exploitation within and across technological and geographical domains," Knowledge Management Research & Practice, Taylor & Francis Journals, vol. 12(2), pages 123-132, May.
    51. Sinéad Monaghan & Esther Tippmann, 2018. "Becoming a multinational enterprise: Using industry recipes to achieve rapid multinationalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(4), pages 473-495, May.
    52. Amemiya, Takeshi, 1984. "Tobit models: A survey," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 3-61.
    53. David B. Audretsch & Maksim Belitski & Sameeksha Desai, 2019. "National Business Regulations and City Entrepreneurship in Europe: A Multilevel Nested Analysis," Entrepreneurship Theory and Practice, , vol. 43(6), pages 1148-1165, November.
    54. David Bruce Audretsch & Maksim Belitski & Rosa Caiazza, 2021. "Start-ups, Innovation and Knowledge Spillovers," The Journal of Technology Transfer, Springer, vol. 46(6), pages 1995-2016, December.
    55. Delmar, Frederic & Davidsson, Per & Gartner, William B., 2003. "Arriving at the high-growth firm," Journal of Business Venturing, Elsevier, vol. 18(2), pages 189-216, March.
    56. Kuratko, Donald F. & Holt, Harrison L. & Neubert, Emily, 2020. "Blitzscaling: The good, the bad, and the ugly," Business Horizons, Elsevier, vol. 63(1), pages 109-119.
    57. 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.
    58. Coad, Alex & Segarra, Agustí & Teruel, Mercedes, 2016. "Innovation and firm growth: Does firm age play a role?," Research Policy, Elsevier, vol. 45(2), pages 387-400.
    59. John Armour & Douglas Cumming, 2006. "The legislative road to Silicon Valley," Oxford Economic Papers, Oxford University Press, vol. 58(4), pages 596-635, October.
    60. Aija Leiponen & Constance E. Helfat, 2010. "Innovation objectives, knowledge sources, and the benefits of breadth," Strategic Management Journal, Wiley Blackwell, vol. 31(2), pages 224-236, February.
    61. Chaudhuri, Atanu & Prætorius, Thim & Narayanamurthy, Gopalakrishnan & Hasle, Peter & Pereira, Vijay, 2021. "Finding your feet in constrained markets: How bottom of pyramid social enterprises adjust to scale-up-technology-enabled healthcare delivery," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    62. John Haltiwanger & Ron S. Jarmin & Javier Miranda, 2013. "Who Creates Jobs? Small versus Large versus Young," The Review of Economics and Statistics, MIT Press, vol. 95(2), pages 347-361, May.
    63. Farzana Chowdhury & David B. Audretsch & Maksim Belitski, 2019. "Institutions and Entrepreneurship Quality," Entrepreneurship Theory and Practice, , vol. 43(1), pages 51-81, January.
    64. David B. Audretsch & Maksim Belitski, 2015. "Creativity spillover of entrepreneurship: evidence from European cities," Chapters, in: Charlie Karlsson & Urban Gråsjö & Sofia Wixe (ed.), Innovation and Entrepreneurship in the Global Economy, chapter 6, pages 141-161, Edward Elgar Publishing.
    65. Johan Wiklund & Holger Patzelt & Dean Shepherd, 2009. "Building an integrative model of small business growth," Small Business Economics, Springer, vol. 32(4), pages 351-374, April.
    66. Erik Stam, 2018. "Measuring Entrepreneurial Ecosystems," International Studies in Entrepreneurship, in: Allan O'Connor & Erik Stam & Fiona Sussan & David B. Audretsch (ed.), Entrepreneurial Ecosystems, pages 173-197, Springer.
    67. 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. 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.
    2. Bohan, Sarah & Tippmann, Esther & Levie, Jonathan & Igoe, Josephine & Bowers, Blake, 2024. "What is scaling?," Journal of Business Venturing, Elsevier, vol. 39(1).
    3. David B. Audretsch & Maksim Belitski & Rosa Caiazza & Farzana Chowdhury & Matthias Menter, 2023. "Entrepreneurial growth, value creation and new technologies," The Journal of Technology Transfer, Springer, vol. 48(5), pages 1535-1551, October.
    4. Maksim Belitski & Rosa Caiazza & Erik E. Lehmann, 2021. "Knowledge frontiers and boundaries in entrepreneurship research," Small Business Economics, Springer, vol. 56(2), pages 521-531, February.
    5. Audretsch, David B. & Belitski, Maksim, 2024. "Knowledge collaboration, firm productivity and innovation: A critical assessment," Journal of Business Research, Elsevier, vol. 172(C).
    6. 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.
    7. Maksim Belitski & Pınar Büyükbalci, 2021. "Uncharted waters of the entrepreneurial ecosystems research: Comparing Greater Istanbul and Reading ecosystems," Growth and Change, Wiley Blackwell, vol. 52(2), pages 727-750, June.
    8. Andrew Godley & Norbert Morawetz & Lebene Soga, 2021. "The complementarity perspective to the entrepreneurial ecosystem taxonomy," Small Business Economics, Springer, vol. 56(2), pages 723-738, February.
    9. Eva Christine Erhardt, 2022. "Prevalence and Persistence of High-Growth Entrepreneurship: Which Institutions Matter Most?," Journal of Industry, Competition and Trade, Springer, vol. 22(2), pages 297-332, June.
    10. Daniele Moschella & Federico Tamagni & Xiaodan Yu, 2019. "Persistent high-growth firms in China’s manufacturing," Small Business Economics, Springer, vol. 52(3), pages 573-594, March.
    11. Demir, Robert & Wennberg, Karl & McKelvie, Alexander, 2016. "The Strategic Management of High-Growth Firms: A Review and Theoretical Conceptualization," Ratio Working Papers 273, The Ratio Institute.
    12. Maksim Belitski & Ana-Maria Grigore & Anca Bratu, 2021. "Political entrepreneurship: entrepreneurship ecosystem perspective," International Entrepreneurship and Management Journal, Springer, vol. 17(4), pages 1973-2004, December.
    13. Alex Coad & Sven-Olov Daunfeldt & Daniel Halvarsson, 2018. "Bursting into life: firm growth and growth persistence by age," Small Business Economics, Springer, vol. 50(1), pages 55-75, January.
    14. 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.
    15. David Bruce Audretsch & Maksim Belitski & Rosa Caiazza, 2021. "Start-ups, Innovation and Knowledge Spillovers," The Journal of Technology Transfer, Springer, vol. 46(6), pages 1995-2016, December.
    16. Eva Christine Erhardt, 2021. "Measuring the persistence of high firm growth: choices and consequences," Small Business Economics, Springer, vol. 56(1), pages 451-478, January.
    17. Sohail, Kanza & Belitski, Maksim & Castro Christiansen, Liza, 2023. "Developing business incubation process frameworks: A systematic literature review," Journal of Business Research, Elsevier, vol. 162(C).
    18. Audretsch, David Bruce & Belitski, Maksim & Guerrero, Maribel, 2022. "The dynamic contribution of innovation ecosystems to schumpeterian firms: A multi-level analysis," Journal of Business Research, Elsevier, vol. 144(C), pages 975-986.
    19. David Bruce Audretsch & Maksim Belitski & Georg Maximilian Eichler & Erich Schwarz, 2024. "Entrepreneurial ecosystems, institutional quality, and the unexpected role of the sustainability orientation of entrepreneurs," Small Business Economics, Springer, vol. 62(2), pages 503-522, February.
    20. Niels Bosma & Jeroen Content & Mark Sanders & Erik Stam, 2018. "Institutions, entrepreneurship, and economic growth in Europe," Small Business Economics, Springer, vol. 51(2), pages 483-499, August.

    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:tefoso:v:202:y:2024:i:c:s0040162524001082. 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.sciencedirect.com/science/journal/00401625 .

    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.