How high-tech start-ups learn to cross the market chasm?

Abstract

The importance of business learning especially among IT start-ups was recognized by many to cross the market chasm. This study aims to present dimensions and aspects of business learning in IT start-ups by using a case study as a qualitative methodology including 23 in-depth and online face-to-face semi-structured interviews with entrepreneurs and co-founders of start-ups in Tehran Province, Iran (about half of them (11) passed this chasm perfectly). This study shows that active IT start-ups in 12 areas or products of services used customers, benchmarking, prior experience, competitors, consultants, internal ideas, and educational content as learning sources from both, formal and informal channels. The team structure is used as the dominant organizational structure for learning. Active experimentation followed by concrete experience (accommodating) is recognized as the most used learning style. To depict a more realistic learning system for crossing the market chasm, triggers, reinforcement, and barrier factors are introduced in a proposed model.