Capability Orchestration and Innovation Management in Scaling Startups: A Systematic Literature Review

Startups are key drivers of innovation-driven economic development. However, many fail to survive beyond their early years, and even fewer succeed in achieving sustainable scaling. Although venture growth has long been a core theme in entrepreneurship research, existing literature remains fragmented regarding how startups manage the resources and capabilities that enable successful scaling. In particular, the conceptualization of innovation management and capability orchestration during the scaling phase lacks a unified framework. This thesis addresses this gap through a Systematic Literature Review conducted using the PRISMA statement. Drawing on approximately 40-50 studies identified primarily through the Scopus database and supplemented by citation searching, the review synthesizes dispersed research at the intersection of startup scaling, innovation management, and capabilities orchestration. The analysis examines how scaling has been defined and operationalized, how capabilities and process innovations are developed and managed during scale-up, and which theoretical lenses, mostly Dynamic Capabilities Theory, have been applied to explain these phenomena. The findings provide an integrated conceptual foundation that highlights the centrality of process innovation and capability orchestration in supporting startups’ exponential growth. The review also identifies significant related gaps. By consolidating current knowledge, this thesis contributes to entrepreneurship and innovation management research by offering a systematic and transparent synthesis of existing evidence and laying the groundwork for future empirical investigation.