What is Scaling?

Sarah Bohan, Esther Tippmann, Jonathan Levie, Josephine Igoe and Blake Bowers (University of Galway) return to the origin of the scaling construct, to its mathematical meaning, to define scaling as time-limited process of exponential growth. The study addresses the drivers of scaling, the internal transformation required to scale and how scaling ventures can achieve competitive advantage through superlinear scaling.

Our insights we wish to share with you:

‘Scaling’ has gained great attention from policymakers, practitioners and academics, resulting in many definitions of the concept, including treating it synonymous to growth. This has caused ambiguity and confusion as to what is scaling.

We therefore sought to put forward a definition of scaling that informs future research, policy and practice.

Following the mathematical meaning, we define scaling as a time-limited process of exponential growth. We elaborated on this definition in two ways. First, scaling for sustained competitive advantage should attain increasing returns to scale in input-output relationships because such efficiencies contribute to both the financial viability and competitiveness of the business. We describe this as ‘superlinear scaling’. Second, we invoke graph theory to deduce that scaling requires internal transformation by management to ensure the business is fit to deliver an exponential increase in outputs and attain increasing returns to scale.

What was the approach for the research?

Our objective was to answer the question: “what is scaling in the business context?” In addition to the theory-driven insights, the arguments are enriched by findings from a Delphi study with 41 scaling experts, involving academics, policy makers, practitioners and service providers, who shared their perspective on the meaning of scaling. The Delphi study involved 82 interviews. The findings revealed the key attributes of the internal transformation associated with scaling, namely a fundamental modification of inputs and input-output relationships, a proactive and well-paced transformation, and sustained innovation

How might you benefit from these insights?

Scaling is a significant management challenge. A common definition of scaling across practice, policy and academia is an important step in advancing more shared conversations across stakeholders on this topic and therefore enable the design of appropriate supports to enable scaling performance. For researchers interested in examining scaling, our definition results in guidelines for measurement to enable cumulative knowledge development.

Citation: Bohan, S., Tippmann, E., Levie, J., Igoe, J. & Bowers, B. (2024) What is scaling? Journal of Business Venturing