Early-stage software start-up survival: The effects of managerial actions on firm performance

Abstract

The emergence of software start-ups contributes to society by driving innovation as well as by creating jobs. Research, to date, mainly concentrates on either start-ups in general or established software firms. Little research has been conducted directly into software start-ups. The objective of this research is to understand how early-stage software start-ups survive. We develop a conceptual model for explaining early-stage software start-up survival. The conceptual model illustrates important resources, capabilities, and managerial actions that facilitate high levels of software start-up performance. Our research contributes theoretically to IS literature in general by developing a theory of how software start-ups survive in the early stages and to resource-based research specifically by explaining the actions management takes in deploying resources and capabilities to achieve high levels of performance.