The key to scaling in the digital era

Simultaneous automation, individualization and interdisciplinarity

Journal article (2024)

Authors

J. Gartner Lund University
Daniela Maresch University of Southern Denmark, Grenoble Ecole de Management
Robert Tierney Northern New Mexico College
Affiliation
External organisation
Scaling Digital technologies Differentiation Cost-leadership Explanatory case study Hybrid strategies Small businesses
More Info
expand_more

Published Date

2024

Language

English

Reuse Rights

Other than for strictly personal use, it is not permitted to download, forward or distribute the text or part of it, without the consent of the author(s) and/or copyright holder(s), unless the work is under an open content license such as Creative Commons.

Affiliation

External organisation

Abstract

In this paper, we develop a theoretical framework that explains how digital technologies can help small businesses generate competitive advantages for scaling. To gain and sustain competitive advantages, small businesses traditionally had to choose between cost leadership and differentiation strategies. Digital technologies enable small businesses to reduce their costs and at the same time enhance the value of their market offerings through differentiation. The aim of this paper is to explain the role of digital technologies in such hybrid strategies for small businesses. We first identify automation, individualization and interdisciplinarity as the three dimensions of digital technologies that together enable technology-driven firms to gain and sustain competitive advantages and to scale rapidly. Second, we integrate these three dimensions into a theoretical framework. Third, we test and confirm the theoretical framework in an explanatory case study and discuss the results.