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Invisible Scaling and Resource Efficiency: Decoupling Market Reach From Organizational Growth in Digital Small and Medium Enterprises

Salman, Rabia, Mohsin Ali, Rana ORCID logoORCID: https://orcid.org/0009-0001-0438-7359 and Shabbir, Muhammad ORCID logoORCID: https://orcid.org/0000-0002-0796-0456 (2026) Invisible Scaling and Resource Efficiency: Decoupling Market Reach From Organizational Growth in Digital Small and Medium Enterprises. Business Strategy and the Environment.

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Abstract

This study introduces invisible scaling, a digitally mediated growth configuration in which entrepreneurial firms expand market reach without proportionate growth in internal employment and organizational infrastructure. Using an exploratory secondary‐data design, it examines 24 purposively selected digital SMEs across four countries and sectors. The analysis identifies variation in reach‐size decoupling and suggests two preliminary configurations: platform‐automated firms relying mainly on digital infrastructure and algorithmic market access, and partner‐orchestrated firms coordinating broader networks of external providers. An organizational decoupling index provides a preliminary representation of market reach relative to internal employment, although the study does not establish causality or the prevalence of the phenomenon. The findings distinguish invisible scaling from its possible mechanisms and show why organizational leanness should not be treated as environmental performance. As energy use, emissions, materials, logistics, and external labor are not measured directly, the environmental implications remain exploratory and concern the appropriate boundary of assessment.

Item Type: Article
Status: Published
DOI: 10.1002/bse.71624
School/Department: London Campus
URI: https://ray.yorksj.ac.uk/id/eprint/15878

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