What is scaling?

Sarah Bohan, Esther Tippmann, Jonathan Levie, Josephine Igoe, Blake Bowers

Journal of Business Venturing · 2024 · Volume 39 · Issue 1

DOI: 10.1016/j.jbusvent.2023.106355

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.

Keywords

High growth, Scale-ups, Exponential growth, Scaling, Delphi

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