Abstract
Information technology start-ups (ITSs) contribute towards the rapid growth of society as well as encourage innovation, create technical jobs, and support the economic and technological development of countries. Despite their importance, however, ITSs have a high failure rate worldwide, making it important to identify the factors that influence their success throughout the life cycle. Moreover, studies of this topic are scarce. This study aims to identify the factors that influence the success of an ITS throughout its development stages to mitigate the risks of failure. We review the critical success factors that affect ITSs and their life cycle stages based on the literature and consider the relationship between these factors and stages. An empirical study is carried out to test the presented hypotheses about the perceptions of 125 CEOs of ITSs in Peru using a descriptive analysis, simple and multiple correspondence analysis, and the Student’s t hypothesis test. Five stages of the life cycle of an ITS are established: seed, early, growth, expansion, and exit. Of the 93 hypotheses tested to assess the influence of 27 critical success factors, 77 are supported. This study proposes an ITS life cycle composed of five stages, defines the critical success factors for each of them, and establishes their influence in all stages.
Highlights
Companies go through different development stages (Abou-Moghli & Al-Kasasbeh, 2012)
SCA SCA is used to determine the level at which a CSF is related to a life cycle stage (Factor → Stage)
93 relationships between the CSFs and life cycle stages of an Information technology start-ups (ITSs) were identified through a conceptual model
Summary
Companies go through different development stages (Abou-Moghli & Al-Kasasbeh, 2012). The managers of an ITS must understand their enterprise’s development stages to contribute to the decision-making process (Thanh, 2015). They must know what procedures to establish for their business to have sustained growth over time (Balboni et al, 2014). In this way, an early-stage ITS that needs to grow can implement the relevant measures and strategies to make it possible. An early-stage ITS that needs to grow can implement the relevant measures and strategies to make it possible. Van Gelderen et al (2005) find that despite the positive impact of ITSs on the economies of developing countries, they present a high failure rate worldwide (McAdam & McAdam, 2008)
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