An explorative model of business model scalability

Abstract

There is broad consensus that a scalable business model plays a key role in new venture success. However, the factors that influence business model scalability have received little attention thus far. This paper aims to shed more light on this topic by introducing an explorative model of business model scalability. The proposed model is based on an analysis of (a) a wide body of literature, in particular including a broad range of studies from entrepreneurship, strategy and business model research and (b) data from qualitative research based on in-depth expert interviews with experienced entrepreneurs and investors. The model provides a basis for understanding the role of a scalable business model in new venture growth and identifies mechanisms for successful web-based business model innovations. This study serves as a starting point for further research on business model scalability and provides guidance for executives in assessing the potential of new business models.