Business theorists and economies of scale

Maslow (Hierarchy of Needs)

Employees are motivated by fulfilling five levels of needs, starting with basic needs and moving toward self-actualization (reaching their full potential).

McClelland (Acquired Needs Theory)

Employees are motivated by three main needs: achievement, affiliation, and power

Taylor (Scientific Management)

Employees are primarily motivated by money and will work harder when paid based on their productivity

Adams Equity (perception of fairness)

Employees are motivated by fairness. They compare their contributions and rewards to those of other employees (input-output)

Deci + Ryan (Self-Determination Theory)

Employees are motivated when they experience autonomy (independence), competence (feeling capable), and relatedness (connection with others)

Vroom (Expectancy Theory)

Employees are motivated when they believe their effort will lead to good performance and desirable rewards

Herzberg (Two-Factor / Motivation-Hygiene Theory)

Employees are motivated by factors like achievement and recognition, while hygiene factors like pay and working conditions help prevent dissatisfaction

Technical

Larger businesses can afford advanced machinery and technology that make production more efficient and cheaper per unit

purchasing/bulk

Businesses buy materials in bulk and receive discounts, lowering their costs

managerial

Larger businesses can hire specialized managers who improve efficiency and productivity

marketing

Advertising costs are spread across more products, reducing the marketing cost per unit

financial

Larger businesses can often borrow money at lower interest rates because lenders view them as less risky

risk-bearing

Larger businesses can spread risk across different products or markets, reducing the impact if one fails