What is a Scalable Business?

Ali-Yrkkö JyrkiHyytinen AriPajarinen MikaRouvinen Petri

Abstract

Scalable business creates good opportunities for productivity growth. Unlike previous studies, in this study, scalability was defined through a business model. This metric does not require growth in the past but is forward-looking in nature and indicates the scalability potential. Our descriptive analyses indicate that companies’ own perceptions on their scalability significantly varies between industries. Interestingly, based on our empirical results, companies’ digital business, international orientation and growth aspiration are positively linked on scalability. Moreover, an indicator for the ventures that report having created their business idea predicts scalability.

Publication info

Research group
Business renewal
Series
ETLA Muistio - ETLA Brief 109
Keywords
Scalability, Scaling, Digital, Growth, Potential, Company, Firm-level
ISSN
2323-2463
JEL
D24, L25, L23
Pages
10
Language
Finnish