Abstract
Scaling up is important for many reasons. Yet, growth may bring not only the benefits of scaling but also its potential complications. This study examines the relationship between firm growth rate and survival especially focusing on how it could be influenced by business model complexity. Examining this question in internet firms circa 2000s, this study offers new insights on the effect of fast growth rate of post-IPO ventures. We found that in general a faster growth rate can improve survival but that relationship beyond a certain point, will reverse. Having a business model that operates in a multi-sided market, having a high level of complexity, also increases failure risk and shifts the optimal growth rate to be lower compared to operating in a single-sided market.
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