Abstract
We examine how firm revenue scales with labor for revenue-per-employee (RPE) and is moderated by firm-level AI investment. We compare AI start-ups, in which AI provides a competitive advantage, with digital platforms and service start-ups. We use propensity score matching to explain the scaling of start-ups and find evidence for sublinear scaling intensity for revenue as a function of labor. Our study suggests similar scaling intensities between AI and service start-ups, while platform start-ups produce higher scaling intensities. We show that an increase in employee counts is associated with major revenue increases for platform start-ups, while increases were modest for service and AI start-ups.
Original language | English |
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Publication date | 2022 |
Number of pages | 10 |
Publication status | Published - 2022 |
Event | The 32nd Workshop on Information Technologies and Systems - Copenhagen Business School, Copenhagen, Denmark Duration: 14 Dec 2022 → 16 Dec 2022 Conference number: 32 https://witsconf.org/wits2022-program-schedule/ |
Workshop
Workshop | The 32nd Workshop on Information Technologies and Systems |
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Number | 32 |
Location | Copenhagen Business School |
Country/Territory | Denmark |
City | Copenhagen |
Period | 14/12/2022 → 16/12/2022 |
Internet address |