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What is a Scalable Business?

Author

Listed:
  • Ali-Yrkkö, Jyrki
  • Hyytinen, Ari
  • Pajarinen, Mika
  • Rouvinen, 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.

Suggested Citation

  • Ali-Yrkkö, Jyrki & Hyytinen, Ari & Pajarinen, Mika & Rouvinen, Petri, "undated". "What is a Scalable Business?," ETLA Brief 109, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:briefs:109
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    File URL: https://www.etla.fi/wp-content/uploads/ETLA-Muistio-Brief-109.pdf
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    More about this item

    Keywords

    Scalability; Scaling; Digital; Growth; Potential; Company; Firm-level;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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