Internationalising scale-ups: an organisational capability approach : A multiple-case study of knowledge acquisition and integration in innovative and internationalising scale-ups.

Abstract: Background: “Scale-ups”, characterised by their high growth and significant contribution to economic development, receive increasing attention in today's economies. They are often young and innovative SMEs that grow rapidly across international borders. “Scale-ups” achieve growth and improved performance through an accelerated organisational development process, which is based on their knowledge resources. Purpose: The purpose of this study is to explore and theorise what constitutes a scaling capability. Specifically, we will study knowledge acquisition and integration in SMEs that scale across international markets. Method: This study has an abductive research approach that considers the current theories on scaling and the knowledge-based view on strategic management and international business. To this end, we completed a multiple-case study of 4 innovative and internationalising scale-ups to accomplish our purpose. Conclusion: The study contributes with a view of scaling as a “scaling capability” that captures how innovative scale-ups manage the internal organisation of experiential knowledge. We develop frameworks that give a generalised understanding of how scale-ups in this particular context acquire and integrate knowledge resources during episodes of growth and improved performance. These frameworks show how scale-ups start their scaling journey with a full acquisition of specialised resources in technical, business and internationalisation knowledge, which they integrate through providing direction and organisational routines to organisational members. We address the importance of having different knowledge capital in symmetry to increase the common knowledge, and we suggest that the scaling capability enables a scale-up to adapt for their changing organisational needs, which is why we liken scaling to developing organisational capability.