Digital Transformation

Scaling Strategies for Industrial Small Tech Firms: Exploring the Market Scaling Process, Barriers, and Outcomes

Patricia Carolina Garcia Martin, Nikolina Koporcic, David Sjödin, and Vinit Parida


Abstract
Scaling is both the main goal and the ultimate challenge for industrial small tech firms (STFs). This is particularly true when firms offer complex and innovative digital solutions for industrial applications. We delineate scaling strategies deployed by STFs, uncovering the underlying configuration of activities driving the scaling process. Specifically, the study reveals a distinctive sequence, where scaling evolves from a common phase of systematic digital solution piloting, into two distinctive strategies called ecosystem scaling (i.e., solution market evaluation, ecosystem development, and horizontal partner-led scaling activities) and servitization scaling (i.e., customer insights mining, service operations development, and vertical customer-led scaling activities).

California Management Review

Published at Berkeley Haas for more than sixty years, California Management Review seeks to share knowledge that challenges convention and shows a better way of doing business.

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