Key Fail Factors as Innovation Strategies to be avoided: a comparative study between Mexican and American Social Impact Startup under COVID-19 pandemic times

Abstract

Purpose: This study determines the different combinations and levels of key fail factors (KFF) as the opposite as key success factors (KSF), between Mexican and American social impact startups (SIS) in COVID-19 pandemic times, as the source of innovation strategies. Methodology: It is based on the KSF-SIS framework, an academic and empirical scale previously probed in 2021. The survey data was on 100 Mexican/300 American CEOs-SIS in Jan-Jun-2021. Covariance-Based Structural Equation Modeling (CB-SEM) determined the model's reliability/validity to confirm the KSF, and Fuzzy set Qualitative Comparative (fsQCA) to get the KFF. Results: According to the 6 factors implied in the KSF-SIS framework, such as Entrepreneur Profile (EPR); Market Knowledge (MKK); Strategic Analysis (STA); Key Performance Indicators (KPI); Business Plan (BPL); Value Proposition (VPN). The results showed 5 combinations of such factors that produce KFF for Mexican SIS and 2 combinations for American SIS as innovation strategies to be avoided. Originality: CB-SEM is used as a reliability and validity tool to confirm the KSF framework to achieve several opposite conditions as KFF through fsQCA, determining necessary, sufficiency, coverage, and consistency of such a framework for Mexican/American SIS.