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How do entrepreneurs use digital tools and strategies to navigate the balance between scalability and personalization in service-based businesses?

Walde, Márk LU and Cicak, Marcel LU (2025) ENTN19 20251
Department of Business Administration
Abstract
For decades, entrepreneurs faced the same trade-off: either pursue cost leadership and grow fast through various scaling strategies or pursue differentiation strategies by emphasizing personalization of their services to customers. Nevertheless, the situation has changed when new technologies such as artificial intelligence, rising computing power, digitization of firms, or cloud services started to fully realize. These technologies offered an unprecedented pace of change, and above all, an opportunity for firms to pursue both scalability and personalization. This study explores how service-firm entrepreneurs navigate such endeavors to benefit from both worlds: scalability and personalization. By conducting qualitative research through... (More)
For decades, entrepreneurs faced the same trade-off: either pursue cost leadership and grow fast through various scaling strategies or pursue differentiation strategies by emphasizing personalization of their services to customers. Nevertheless, the situation has changed when new technologies such as artificial intelligence, rising computing power, digitization of firms, or cloud services started to fully realize. These technologies offered an unprecedented pace of change, and above all, an opportunity for firms to pursue both scalability and personalization. This study explores how service-firm entrepreneurs navigate such endeavors to benefit from both worlds: scalability and personalization. By conducting qualitative research through semi-structured open-ended interviews, the research investigates previously underexplored domains of entrepreneurship. The empirical findings reveal that entrepreneurs implement a myriad of interconnected digital tools amplified by artificial intelligence while following multiple strategies that allow them to grow fast while maintaining the level of personal touch with their customers. Additionally, the data demonstrates that the right mindset of the entrepreneur shapes decisions with regard to selection of digital tools and strategies implemented. The study addresses the gap in the literature which focuses mainly on product-based businesses and highlights a rather trade-off mindset. Since new technologies are emerging, the paper calls for further research and continuous re-evaluation of current and more traditional frameworks in the domain of entrepreneurship and strategic management. (Less)
Please use this url to cite or link to this publication:
author
Walde, Márk LU and Cicak, Marcel LU
supervisor
organization
course
ENTN19 20251
year
type
H1 - Master's Degree (One Year)
subject
language
English
id
9204352
date added to LUP
2025-06-24 10:01:22
date last changed
2025-06-24 10:01:22
@misc{9204352,
  abstract     = {{For decades, entrepreneurs faced the same trade-off: either pursue cost leadership and grow fast through various scaling strategies or pursue differentiation strategies by emphasizing personalization of their services to customers. Nevertheless, the situation has changed when new technologies such as artificial intelligence, rising computing power, digitization of firms, or cloud services started to fully realize. These technologies offered an unprecedented pace of change, and above all, an opportunity for firms to pursue both scalability and personalization. This study explores how service-firm entrepreneurs navigate such endeavors to benefit from both worlds: scalability and personalization. By conducting qualitative research through semi-structured open-ended interviews, the research investigates previously underexplored domains of entrepreneurship. The empirical findings reveal that entrepreneurs implement a myriad of interconnected digital tools amplified by artificial intelligence while following multiple strategies that allow them to grow fast while maintaining the level of personal touch with their customers. Additionally, the data demonstrates that the right mindset of the entrepreneur shapes decisions with regard to selection of digital tools and strategies implemented. The study addresses the gap in the literature which focuses mainly on product-based businesses and highlights a rather trade-off mindset. Since new technologies are emerging, the paper calls for further research and continuous re-evaluation of current and more traditional frameworks in the domain of entrepreneurship and strategic management.}},
  author       = {{Walde, Márk and Cicak, Marcel}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{How do entrepreneurs use digital tools and strategies to navigate the balance between scalability and personalization in service-based businesses?}},
  year         = {{2025}},
}