Context Of Startups Research Articles

The Critical Role of Product Managers and Their Responsibilities in Software Startups: A Systematic Literature Review

In the high-paced, uncertain, and resource-constrained environment of software startups, achieving product–market fit and acquiring initial customers are critical yet challenging tasks. These challenges are often exacerbated by the absence of strategic planning, inefficient requirements selection processes, inadequate resource allocation, and insufficient market research, leading to an alarming 63% failure rate among software startups. The Product Manager (PM), responsible for product strategy, planning, and results monitoring, plays a pivotal role in navigating these complexities; however, the PM role is often undervalued and lacks a universally accepted definition. This study aims to enhance the understanding of the PM's role within software startups by conducting a comprehensive Systematic Literature Review (SLR). Employing a rigorous selection methodology, we reviewed 134 studies and identified 662 distinct PM tasks across 122 activities. Notably, only 7 studies (5.73%) specifically addressed the software startup context, revealing a substantial gap in the literature. Our findings indicate that while product planning and requirements prioritization are dominant topics, many critical activities remain underrepresented, underscoring the need for targeted research in these areas. By addressing the unique challenges faced by software startups, we pave the way for more targeted and effective PM strategies. Future research should consider adopting mixed-method approaches to deepen the understanding of PM practices and investigate underexplored areas such as go-to-market strategies, roadmap creation, and requirements selection within the startup context.

Future of Hygieia Health Private Limited

The case revolves around the dilemma faced by the existing co-founders of Hygieia Health Private Limited (hereafter, Hygieia) in managing a potential startup with an amazing product but declining investor confidence due to the sudden exit of one of the co-founders. Hygieia, a tech services company that started in September 2016, represented the medical healthcare sector that served the niche customer segment—pregnant women. The startup was considered to be one of the promising businesses by early-stage tech funders. However, one of the co-founders suddenly announced that he would leave the company without parting with his stake in it. This created a major problem for the other founder members in moving ahead. The case examines the factors contributing to the crises and dilemmas faced by Hygieia’s co-founders, which led them to devise a strategic plan to overcome these challenges. It emphasizes the difficulties encountered by a growing startup and highlights the importance of having a strong team to sustain and expand the business. Additionally, the case explores relevant valuation concepts in a startup context. It provides insights into the significance of human capital in a tech startup using the people, opportunity, context and deal (POCD) framework, explores various financing options available for startups and outlines key valuation methods.

The effect of artificial intelligence on the effectiveness of the recruitment process in startup companies

As you already know, the recruitment process is an essential function of HR that will directly influence your organizational triumph. Conventional recruitment is often done via manual screening that can be time- and money-consuming, biased. Recruiting drives growth and competitiveness in the fast-moving world of start-ups, so it is vital that recruitment be executed quickly! In addition, recently, a new trend of employing Artificial Intelligence (AI) in recruitment has been introduced as a game changer. This research on how AI influences the potential success of recruiting in start-up context. The study uses a quantitative design Partial Least Squares Structural Equation Modelling (PLS-SEM) is utilized for analyzing the data. Findings indicate that incorporating AI significantly boosts efficiency, reduces cost per hire in both monetary and time aspects (leading to decreased time spent by recruiters on task handling), and enhances Hire Quality & Candidate Satisfaction in the recruitment process. While casting light on a relatively under-researched area, this paper also makes suggestions for HR practitioners and start-up managers who are contemplating the acquisition of AI technologies within their recruitment processes.

Beyond the prototype: Unpacking the intersectional identity and image work of female minority founders in a startup context.

It is well documented that female minority founders (FMFs) face disadvantages in starting and scaling their ventures. However, the causes of these disadvantages-as well as how FMFs navigate these challenges-are less understood. Our article adopts an intersectionality lens, which allows us to focus on and examine the multiple intersecting dimensions of FMFs (such as gender, ethnicity, migrant status, and social class) and how they influence their entrepreneurial experiences. Drawing upon an inductive study of FMFs operating in Berlin, we build a theory on intersectional identity and image work in startup contexts. We found key structural barriers that serve to sustain inequality and continue to favor more prototypical founders. However, we also identified sources of penalties and privileges that exacerbate (or mitigate) inequality and result in founder image discrepancy. Our analysis demonstrates how founder image discrepancy can prompt FMFs to engage in a progression of intersectional identity and image work that shapes their founder identity. These findings advance entrepreneurship and identity research by extending our understanding of how intersectional identity challenges and opportunities manifest and can be managed within startup contexts. (PsycInfo Database Record (c) 2024 APA, all rights reserved).

An Empirical Evaluation of a Generative Artificial Intelligence Technology Adoption Model from Entrepreneurs’ Perspectives

Technologies, such as Chat Generative Pre-Trained Transformer (ChatGPT), are prime examples of Generative Artificial Intelligence (AI), which is a constantly evolving area. SMEs, particularly startups, can obtain a competitive edge, innovate their business models, gain business value, and undergo a digital transformation by implementing these technologies. Continuous but gradual experimentation with these technologies is the foundation for their adoption. The experience that comes from trying new technologies can help entrepreneurs adopt new technologies more strategically and experiment more with them. The urgent need for an in-depth investigation is highlighted by the paucity of previous research on ChatGPT uptake in the startup context, particularly from an entrepreneurial perspective. The objective of this research study is to empirically validate the Generative AI technology adoption model to establish the direction and strength of the correlations among the adoption factors from the perspectives of the entrepreneurs. The data are collected from 482 entrepreneurs who exhibit great diversity in their genders, the countries in which their startups are located, the industries their startups serve, their age, their educational levels, their work experience as entrepreneurs, and the length of time the startups have been on the market. Collected data are analyzed using the Partial Least Squares Structural Equation Modeling (PLS-SEM) technique, which results in a statistical examination of the relationships between the adoption model’s factors. The results indicate that social influence, domain experience, technology familiarity, system quality, training and support, interaction convenience, and anthropomorphism are the factors that impact the pre-perception and perception phase of adoption. These factors motivate entrepreneurs to experiment more with the technology, thereby building perceptions of its usefulness, perceived ease of use, and perceived enjoyment, three factors that in turn affect emotions toward the technology and, finally, switching intentions. Control variables like age, gender, and educational attainment have no appreciable effect on switching intentions to alternatives of the Generative AI technology. Rather, the experience factor of running businesses shows itself to be a crucial one. The results have practical implications for entrepreneurs and other innovation ecosystem actors, including, for instance, technology providers, libraries, and policymakers. This research study enriches the Generative AI technology acceptance theory and extends the existing literature by introducing new adoption variables and stages specific to entrepreneurship.

Study protocol for factors influencing the adoption of ChatGPT technology by startups: Perceptions and attitudes of entrepreneurs.

Generative Artificial Intelligence (AI) technology, for instance Chat Generative Pre-trained Transformer (ChatGPT), is continuously evolving, and its userbase is growing. These technologies are now being experimented by the businesses to leverage their potential and minimise their risks in business operations. The continuous adoption of the emerging Generative AI technologies will help startups gain more and more experience with adoptions, helping them to leverage continuously evolving technological innovation landscape. However, there is a dearth of prior research on ChatGPT adoption in the startup context, especially from Entrepreneur perspective, highlights the urgent need for a thorough investigation to identify the variables influencing this technological adoption. The primary objective of this study is to ascertain the factors that impact the uptake of ChatGPT technology by startups, anticipate their influence on the triumph of companies, and offer pragmatic suggestions for various stakeholders, including entrepreneurs, and policymakers. This study attempts to explore the variables impacting startups' adoption of ChatGPT technology, with an emphasis on comprehending entrepreneurs' attitudes and perspectives. To identify and then empirically validate the Generative AI technology adoption framework, the study uses a two-stage methodology that includes experience-based research, and survey research. The research method design is descriptive and Correlational design. Stage one of the research study is descriptive and involves adding practical insights, and real-world context to the model by drawing from the professional consulting experiences of the researchers with the SMEs. The outcome of this stage is the adoption model (also called as research framework), building Upon Technology Adoption Model (TAM), that highlight the technology adoption factors (also called as latent variables) connected with subset of each other and finally to the technology adoption factor (or otherwise). Further, the latent variables and their relationships with other latent variables as graphically highlighted by the adoption model will be translated into the structured questionnaire. Stage two involves survey based research. In this stage, structured questionnaire is tested with small group of entrepreneurs (who has provided informed consent) and finally to be distributed among startup founders to further validate the relationships between these factors and the level of influence individual factors have on overall technology adoption. Partial Least Squares Structural Equation Modeling (PLS-SEM) will be used to analyze the gathered data. This multifaceted approach allows for a comprehensive analysis of the adoption process, with an emphasis on understanding, describing, and correlating the key elements at play. This is the first study to investigate the factors that impact the adoption of Generative AI, for instance ChatGPT technology by startups from the Entrepreneurs perspectives. The study's findings will give Entrepreneurs, Policymakers, technology providers, researchers, and Institutions offering support for entrepreneurs like Academia, Incubators and Accelerators, University libraries, public libraries, chambers of commerce, and foreign embassies important new information that will help them better understand the factors that encourage and hinder ChatGPT adoption. This will allow them to make well-informed strategic decisions about how to apply and use this technology in startup settings thereby improving their services for businesses.

Beyond the boss: how distributed leadership elevates team effectiveness in startup organizations? – a multi-level analysis

PurposeThough there is an increasing corpus of work on contemporary styles of leadership, studies on distributed leadership (DL) are still in the nascent stage. Therefore, the purpose of this paper is to investigate how DL affects team effectiveness from the neglected perspectives of team cognition, team motivation and team coordination in startup companies using multi-level analysis.Design/methodology/approachThe authors investigated the study variables through the lens of 42 teams in 18 startup organizations operating in India, representing an equitable distribution of the manufacturing and service sectors. M-plus was used to do statistical analysis on the multi-level model.FindingsDrawing upon social exchange theory (SET), results indicated that DL had a favorable impact on team effectiveness and team cognitive processes, team motivation and team coordination mediates the association between DL and individual perceptions of team effectiveness.Originality/valueVarious studies have been carried out relating to leadership and how it impacts effectiveness. However, as far as the authors know, previous studies have failed to empirically address how DL drives team effectiveness by uncovering the mediating impact of team cognitive processes, team motivation and team coordination in the Indian startup context.

To What Extent Do Hybrid Start-ups Strive for Different Impact? Insights from Explorative Case Studies

The purpose of this article is to advance the sustainable entrepreneurship research context by establishing an in-depth understanding of the aspired successes and related sustainability results of hybrid and non-hybrid start-ups against the background of a multi-level perspective. The insights are generated through an explorative multiple-case-study approach including twelve German start-up companies both hybrid start-ups and non-hybrid start-ups. There is limited research that conceptualizes aspired successes applying a multi-level view to the firm level of start-ups. This article provides comprehensive insights into different success and result categories of sustainable entrepreneurship and provides both future research as well as practitioners with a clear directive of how to navigate in the hybrid start-up context. Finally, the discussed differences and similarities between hybrid start-ups and non-hybrid start-ups draw a clearer though differentiated line between these two archetypes of start-ups.

Analysis of the capital structure of startups in light of the tradeoff and pecking Order theories

Purpose: Startups have significant differences compared to other companies. They have many intangible assets (e.g., team tenure and experience of founders), are risky, and tend not to generate profits in their initial years (Heirman & Clarysse, 2007; Weber & Zulehner, 2009). Does the startups’ financing choice also differ from that of traditional companies? We analyzed the capital structure of startups in their first years of life based on the classic tradeoff and pecking order theories. Methodology/approach: We collected data on 40 startups in the city of Ribeirão Preto, São Paulo, Brazil, through a questionnaire on the profiles of the founders, company characteristics, bottom-line performance and financing sources. The data collected covered the year of founding and the three subsequent years. Findings: The results indicated that these startups mainly financed themselves through the founders’ capital in all four years covered. Only in the third year did they start using resources generated internally, indicating pecking order adherence. However, the presence of angel investors and government subsidies contrasted with the absence of bank debt. In line with the tradeoff theory, bank debt was not a viable financing option in the early years of these firms since they had low profitability and high risk. Theoretical/methodological contributions: We offer a theoretical contribution by analyzing the adequacy of traditional financial theories in the specific context of startups. Originality: The finance literature about startups is scarce, and few studies have analyzed these companies from the capital structure theoretical perspective. Social contributions / for management: We provide a panorama of the financing of startups to support their financial planning regarding fundraising.

The Mediating Role of Resource Availability and Allocation in Strengthening the Relationship of Change Strategies in the Growth and Development of Entrepreneurial Projects after Covid 19

With limited contemporary examinations investigating interactions between change management strategies and startups and entrepreneurial ventures’ growth and development, judgements are bound to be clouded. As a result, the study’s main objective is to identify the key challenges faced by startups and entrepreneurial ventures in response to the post-pandemic business landscape. The study is important for providing valuable insights into successful change management practices, offering practical recommendations for business leaders, and contributing to the understanding of post-pandemic resilience and adaptation in the region’s entrepreneurial ecosystem. The study formulated 8 hypotheses linking digital transformation, customer-centric, financial restructuring and resource optimization, and resource availability and allocation change management approaches with the growth and development of startups and entrepreneurial ventures. A quantitative method involving a Structural Equation Modelling approach was applied to 326 clustered survey responses collected from CEOs, general managers, finance managers, human resources managers, change management leaders and employees and team members of start-ups and entrepreneurial ventures in Erbil, Kurdistan Region of Iraq. According to the findings, digital transformation significantly enhances resource availability and allocation, and growth and development. While customer-centricity may not directly affect resource availability and allocation post-Covid-19, the study concludes that a customer-centric mindset and strategy remain critical to business resilience. Most importantly, financial restructuring and resource optimization positively and significantly affect resource availability and allocation, as well as growth and development. Lastly, the study upholds that resource availability and allocation’s mediating effects are not valid within the context of startups and entrepreneurial ventures in the post-pandemic business landscape.

Founders' flow: A qualitative study on the role of flow experience in early start-up stages.

Flow experience is a state of complete absorption while performing an optimally challenging and enjoyable task. It is often experienced at work-both in the form of individual and team flow-and can have a positive effect on performance and well-being. However, start-up founders' work situation differs from that in established companies, facing not only great autonomy but also new challenges, uncertainty, and risks. It can be assumed that flow also provides benefits in start-ups, however, this has not yet been examined in depth and the factors that may operate differently in start-ups in comparison to other work contexts have not yet been explored in detail. Using a qualitative research approach, 21 founders from different industries were interviewed. Enhancing and inhibiting factors of flow and team flow as well as consequences for the founders and the start-up in general were examined and structured with the help of a qualitative content analysis. A variety of contexts was identified in which founders experienced flow and team flow. Various factors on the individual, task-related and organizational sphere were found to be perceived as promoting or hindering flow and team flow, e.g. well-being, autonomy or the environment. The findings regarding the consequences of flow and team flow show that these mainly are very desirable states for founders, e.g. leading to better results, progress or team processes. Only few negative consequences were identified, e.g. perfectionism. Thus, it is helpful to foster flow in the start-up context. Possible approaches derived from the participants' statements to this could be, for example, to design flow-promoting environments or participation in specific workshops.

Influence of Psychological Contracts in Knowledge Sharing Through Startups

Informed by exchange and social capital theories, reasoned action, and psychological contract frameworks, this paper seeks to elucidate the intricate interplay between psychological contracts and their impact on knowledge-sharing motivations within the context of startups. The research adopts a qualitative approach, employing in-depth personal interviews and focus groups, with subsequent content analysis facilitated by NVivo software. Through a comprehensive exploration encompassing startups spanning diverse industries and maturity levels, the investigation draws upon insights from founding partners, directors, and employees. Notably, this study stands apart from the literature primarily examining established enterprises in Anglo-Saxon nations. Conversely, it distinguishes itself by its novel examination of how psychological contracts exert influence on knowledge sharing across individual, intra-organizational, and inter-organizational strata within startups operating in emerging economies, taking into account their distinctive characteristics. The findings shed light on employees' core perceptions of their reciprocal obligations and the organization's corresponding commitments. Moreover, the research unveils the nuanced impact of contextual factors on the cultivation of social bonds, consequently moulding knowledge-sharing dynamics within startups, thereby directly shaping individual and organizational outcomes.

Corporate Experimentation: Antitode or Oxymoron?

Experimentation in entrepreneurship has become the basis for the most influential approaches, e.g., lean startup, to launch and develop new ventures. Recently, the ideas developed around experimentation, strongly rooted in the startup context, have begun to be adopted by incumbent organisations, with the promise that these experimentation approaches can benefit corporate entrepreneurship activities, i.e., entrepreneurship activities in the corporate context, despite the established and corporate bureaucratic processes and practices. While there is a growing and significant body of literature investigating experimentation in the startup context, there is no corresponding research exploring the peculiar implications of experimentation in corporate entrepreneurship. Furthermore, current indications for managers and practitioners on how to exploit the benefits of experimentation approaches in the corporate context appear unclear. This issue is more relevant today when companies have to face fast-changing customer needs and market trends, as well as the design of complex value propositions. Through an exploratory multiple case study - based on semi-structured interviews – involving three incumbent firms, this study explores how experimentation is conducted in incumbent organisations and used as a tool to support corporate entrepreneurship. This study provides detailed empirical evidence on how incumbents can adopt experimentation approaches in the corporate context, together with a set of specific managerial practices. Specifically, we document corporate experimentation challenges at three levels of analysis: (i) experimentation-level challenges; (ii) firm-level challenges, and (iii) network-level challenges. Based on the findings of this study, we contribute to research and practice on experimentation in corporate entrepreneurship.

Navigating the New Product Development Process: A Case Study of a Startup’s Journey from Ideation to Commercializatio

New Product Development (NPD) is a critical yet challenging aspect of business development, with failure rates ranging from 40% to 80%. This challenge is particularly pronounced in startups, which form the backbone of most developed economies. Despite their importance, startups often struggle with NPD, with some studies suggesting a failure rate as high as 90%. This research paper contributes to the existing literature by examining the NPD journey of a technology startup, Plugable. Plugable, an Irish enterprise in the mobility sector, aims to create a platform similar to Airbnb for private Electrical Vehicle (EV) chargers. The paper traces the journey of two products the company attempted to launch. The first product did not reach the launch stage, leading the business to revise its strategy and develop Plugable. At the time of writing, Plugable is at the prototype stage, having secured €50,000 in external funding and won several national business awards. The case study provides several key learnings for entrepreneurs in the NPD space. It underscores the importance of accurately defining the problem statement, the critical role of validation, and the significance of assembling the right team to develop an effective go-to-market strategy. These findings contribute to the emerging body of knowledge on NPD within the startup context, providing practical insights into the application of established NPD models. Furthermore, the study offers valuable insights into technology startups' unique challenges during the NPD process.

How Do Start-up Characteristics and Innovation Practices Influence Share Value? An Empirical Examination

Start-up ecosystems, with their inherent dynamism and potential for innovation, have grown significantly in recent years. However, understanding the factors that influence their share value remains an intricate task. This research aims to elucidate the direct and indirect impacts of start-up attributes - assets, capital, and employees - and their innovative practices on the share value of these burgeoning enterprises. Using regression analysis on data collected from start-ups operating between 2019 and 2022, this study uncovers several critical insights. The assets, capital, and number of employees were found to have a significant influence on the level of innovation within the start-up. Yet, surprisingly, these factors, along with innovation itself, did not exert a direct influence on the start-up shares. However, an indirect effect was noticed, with assets and capital influencing shares when mediated by innovation. No such indirect effect was discerned with the number of employees. This study enriches the existing literature by providing a nuanced perspective on the interconnectedness of start-up characteristics, innovation, and share value. Moreover, it presents vital insights to investors and start-up decision-makers by underscoring the essential role of innovation in enhancing share value. For future research, exploration of other potential mediators and examination of these relationships across diverse start-up contexts is recommended to develop a more comprehensive understanding.

The New Trend: Why Indonesian Digital Start-Up Employees are Opting for Quiet Quitting?

Our study examined variable JS, OC, and OCB on QQ within the context of Indonesian digital start-ups. A survey was conducted on 269 employees from digital start-ups in various sectors, such as transportation and logistics, food delivery, e-commerce, fintech, digital payments and wallets, and online learning platforms. Quantitative analysis with SmartPLS 4.0 was used to process the primary data and obtain the SEM. It showed that six out of seven hypotheses were accepted. The direct effect simulation revealed that JS and OC significantly influenced OCB and QQ. Additionally, OCB significantly impacted QQ and mediated the effect of OC on QQ but failed to mediate the relationship between JS and QQ. This research indicates that mitigating the QQ phenomenon requires a comprehensive focus on improving JS, fostering OC, and encouraging OCB. In addition, the findings can be leveraged to devise more effective human resource strategies, including competitive compensation packages, performance-based bonuses, and market-aligned salaries to increase JS. Also, the study underscores the need for promoting a positive work culture and employee development opportunities to augment OC and OCB. Ultimately, these insights guide the creation of human resource policies that can enhance employee performance and commitment, thereby contributing to a company’s overall success and productivity.

Improving startup’s attractiveness as industrial customers by organizing theirpurchasing activities

Purpose This study aims to analyze how startups organize their purchasing activities to improve operative excellence and become attractive customers. Design/methodology/approach The authors use a two-phase exploratory approach with semistructured interviews and a World Café. In total, 20 startup purchasers and suppliers participated. It is an international study with participants from eight countries (Belgium, Brazil, France, Germany, Hungary, The Netherlands, the UK and the USA). Findings The authors find that startups organize the purchasing function in five ways: partial outsourcing, transactional-oriented, strategic only, outsourced purchasing and full department. Each type has advantages and disadvantages regarding operative excellence. The authors identify type-specific antecedents to operative excellence: forecasting, payment habits, ordering process, contact accessibility and quick decision-making. Research limitations/implications The value of this paper is that it offers entrepreneurs a framework to organize startup purchasing activities, including outsourcing options. Furthermore, it provides theoretical contributions that expand the topic of purchasing and supply organization and operative excellence to the startup context. Originality/value The value of this paper is that, to the best of the authors’ knowledge, it is the first to explore purchasing organization and operative excellence in startups.

BUSINESS ADMINISTRATION: "A DETAILED EXAMINATION OF LEADERSHIP STYLES AND THEIR INFLUENCE ON THE GROWTH AND SUCCESS OF START-UPS"

This paper provides a comprehensive review of leadership styles within the context of start-ups, exploring their effects on growth, innovation, and overall success. By carefully observing the delineation of leadership styles, including transformational, transactional, charismatic, situational, and laissez-faire, the review illuminates the unique attributes and implications each style holds for burgeoning businesses. Transformational leadership emerges as a crucial driver for innovation, emphasizing vision and collective drive. In contrast, transactional leadership offers operational efficiency but may risk long-term adaptability. Charismatic leaders, with their compelling personas, drive rapid growth, but centralization can pose challenges. With its inherent adaptability, situational leadership proves invaluable in the volatile start-up landscape, and laissez-faire leadership, promoting autonomy, demands careful balance to prevent directionlessness. The intricate relationship between leadership styles and business growth is explored in depth, underscoring that while leadership is a pivotal determinant, its efficacy intertwines with numerous variables, from market dynamics to team composition. One standout realization is the profound synergy between leadership and innovation, a lifeline for differentiation in the competitive start-up arena. Leadership’s role is thus not confined to mere administration; it shapes organizational culture, guiding innovation and strategic direction. The review emphasizes that effective start-up leadership is multifaceted, requiring foresight, adaptability, and a visionary outlook. As the entrepreneurial world continues to evolve, understanding and harnessing the nuances of leadership styles remains critical for sustained growth and success.

PERSONALITY AS A KEY DETERMINANT OF THE ORGANIZATIONAL SILENCE IN IRANIAN STARTUPS

Addressing the lack of research and knowledge about organizational silence in the nascent but promising Iranian startup ecosystem, this study examines the relationship between personality factors and organizational silence in Iranian startups. Data were collected using Vakola and Bouradas Organizational Silence Questionnaire and NEO Personality Inventory filled by 532 startup employees in Iran, then analyzed by Pearson and multivariate regression tests. Hypotheses were tested through SPSS. Data analysis demonstrated that personality factors predict 17.0% of the variance of organizational silence, and there is a significant relationship between each personality factor with organizational silence in startups. The strongest and weakest correlations with organizational silence were observed for openness to experiences and conscientiousness, respectively. The study is cross-sectional, so its results cannot be casually inferred; longitudinal studies are needed to obtain more comprehensive information. Access to qualified respondents was challenging because of startup managers’ overall conservativeness spirit and tendency to withhold information about their employees. This study has implications for startup managers and decision-makers. Since it has examined a destructive organizational phenomenon in the specific context of startups, this knowledge will help managers recognize and resolve organizational silence. This study has filled the research gap by examining the organizational silence in Iranian startups for the first time and has implications for theoretical development in this novel context; furthermore, it helps startup managers to deal with organizational silence more effectively.

Startup spawning: background and formative processes

PurposeThis study aims to analyze the phenomenon of entrepreneurial spawning in the new context of software startups, revisiting theory and identifying patterns within the emergence of startups/spin-offs in Brazil.Design/methodology/approachA study of two cases of startups recognized for generating several spin-offs founded by former employees. The authors based the data collection on the following triangulation: 11 in-depth interviews, systematic analysis of 33 resumes from entrepreneurs in spawned firms and document analysis.FindingsSix skills developed in startups were identified: (1) structuring a company, (2) people management, (3) strategic/operational planning, (4) commercial/sales, (5) product development, and (6) behavioral traits. In addition, points of contradiction concerning the literature were found, such as the absence of the location effect, different professional experiences and new local agents to support startups.Research limitations/implicationsThe present study covers only two cases in the context of software startups, which requires caution and discretion in extrapolating to other contexts.Practical implicationsThe understanding of the phenomenon may reflect in: university programs focused on internships in startups, corporate training programs for entrepreneurs and the design of public policies based on entrepreneurial spawning.Originality/valueThe present study stands out for its access to data from high-impact startups in Brazil, in addition to revisiting the literature bringing a new perspective to the specificities of high-growth software companies.