Internal drivers of competitiveness for micro and small software development companies in South-Eastern Mexico

Abstract

The software industry has been identified as a key driver of overall sustained business growth, competitiveness, and innovation in developing economies. This study generates a predictive model of performance for software development companies in Mexico by identifying internal factors that lead to increased competitiveness. Organisational competitiveness is examined using indicators of permanence, growth, and profitability from the perspective of top managers in the industry. Internal factors explored as predictors of competitiveness include quality management, technological infrastructure, innovation practices, human resource practices and marketing practices. A cross-sectional survey-based study was used to investigate the software industry in Mexico, and the data collected was analysed using multiple linear regression. Results suggest that quality assessment and innovation practices are significant predictors of competitiveness. The findings helped identify key factors that influence the performance of software companies, which are considered critical promoters of overall economic development.