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The Early Stages of Growth in Technology- and Service-Based Firms

Muhos Matti, Saarela Martti, Simunaniemi Anna-Mari, Foit Jr. Del, Rasochova Lada

Management and Production Engineering Review

2021

Vol. 12, No. 2

3--16

Many stages of growth models have been introduced to clarify management priorities during the early stages of business growth. However, many of these models are conceptual and universal, providing only limited benefits to specific industries and business contexts. The early stages of technology-based ventures have attracted broad interest, while less attention has been paid to the early stages of service-based firms. However, in recent years, interest in service-based businesses, as well as servitisation, has grown. This literature-based study explores and compares the early stages of growth in service-based and technology-based firms. On one hand, this study condenses the basic characteristics of recent empirical studies on the early stages of technology- and service-based firms. On the other, this study clarifies the central themes, sequential patterns and central differences in the early stages of service- and technology-based firms. This study pinpoints the importance of contextual understanding related to the early stages of business growth and encourages the scholars towards bridging the contextual gaps of this stream of literature.