Making a larger engine with the same design (power density) and larger displacement will cause the engine to operate in a different RPM band for the same power demand, and the answer to your question depends on the details of the execution.
One example of the hypothetical engine is where every part grows proportionally to, and around the increase in cylinder displacement, meaning literally everything else grows; valve-, port-, head-size, cams, bearings... and the mass of each individual component. Theoretically, so too does the mechanical friction loss.
Another example is when using the same engine series, but different displacement. Say a K20 vs a K24 with the exact same tuning characteristics. While we have a lot of shared specs like journal area, port size and valve size, which while being equal lend themselves to inequity given the displacement difference. Then we have glaring inequalities like rod/stroke ratio, affecting the piston movement characteristic at every stroke. K24 will have increased piston sidewall thrust (friction) and more erratic accel/decel.
But the larger displacement engine can come in handy for tuning out pumping losses, by operating it part or full time with Miller valve timing, controlling cylinder charge and thus torque output, slashing pumping losses thereby easily overcoming any mechanical disadvantage. This is seen on hybrid ICE engines and high efficiency NA engines. A Prius went up to 2.0L for a reason.
Another advantage of larger displacement, is the ability to control emissions by controlling combustion temperatures for a given power demand. Separate topic.
The recent fad of choosing small, high-power-density ICEs is a balance of economics. Higher strength, and inevitably more expensive parts are required.
-smaller expensive parts means savings.
-keeps weight down; economics again, plus regulations satisfying.
-small displacement is a HARD MECHANICAL LIMIT on potential power output (and theoretically lifespan) before the engine goes boom.
-use turbo pressure and valve timing to control cylinder charge, not so much displacement- wider ability to autonomously limit net power output
Basically exploiting untapped volumetric efficiency is a low hanging fruit and and companies are more emboldened to employ them because of recent advances in component tech allowing them to satisfy warranty. Thats why so many have taken the downsize route. OTOH a Corvette can get 30s MPG on the highway. So the answer to your question: it totally depends.