Academic journal article Academy of Entrepreneurship Journal

Systematic Literature Review of Critical Success Factors of Information Technology Startups

Academic journal article Academy of Entrepreneurship Journal

Systematic Literature Review of Critical Success Factors of Information Technology Startups

Article excerpt

INTRODUCTION

At the moment of undertaking, fundamentally in the technology sector, it is necessary to carry out a deep analysis not only of the national market, but of the global market, to see if our idea has already been proposed or is already being exploited, since once Is launched the product or service to the market of a country, its international expansion is practically implicit (Joshi & Satyanarayana, 2014). In many countries in the region and in the world, there is a growing trend towards new innovative businesses, so new technology-based companies (Startups) are born each year (Hormiga et al., 2010). The study by Krejci et al. (2015) indicated that a Startup is a new and temporary company that has a business model based on innovation and technology. In addition, these types of companies have a potential for rapid growth and scalability. Startups are known to governments around the world for their contribution to economic stability, growth, and job creation (Sulayman et al., 2014). The figure of Startup has acquired an important relevance in the most dynamic markets of the world as a new model of social and economic growth (Olawale & Garwe, 2010). According to Kelley & Nakosteen (2005), Startups are important for the development of the economies of the countries and especially important in the developing countries. The concept of Startup is identified with those organizations that begin or are in their earliest stages of development (Spiegel et al., 2015). According to Cho & McLean (2009), Information Technology (IT) Startups, also referred to as new technology-based enterprises, are those temporary organizations that create innovative products and/or services using high technology, but this Type of companies are also known to be inserted in uncertain and risky scenarios, proof of this is their high mortality rate (Preisendorfer et al., 2012). Unfortunately, the failure rate of such firms is high worldwide (Cowling et al., 2006; Colombo & Grilli, 2005; McAdam & McAdam, 2008). According to Ejermo & Xiao (2014), between 1990 and 2000, only 21 percent of IT Startup in Sweden survived after 5 years. On the other hand, Hyder & Lussier (2016) affirms that more than 80 percent of Startups fail in their first year of existence. In the last decades, an extensive literature on the factors influencing the success of the Startup has been developed (Yoon-Jun, 2010), although there is a lack of consensus in determining what these factors are, along with a lack of knowledge about the Startups (Sulayman et al., 2014), so it is preponderant to identify the critical success factors of the IT Startup, in order to mitigate the risks of failure and, consequently, increase their success. Since 1984, with the work of Van de ven et al. (1984), studies have been carried out to identify, analyze and discuss the main factors that influence the success of the Startup (e.g. Almakenzi et al. 2015, Anh et al., 2012 Balboni et al., 2014, Banda & Lussier, 2015). However, these studies have paid scant attention to categorizing the identified factors, which according to Bocken (2015) all factors must be within a certain category. In addition, factors must be classified to distinguish between different types of factors influencing success. Although there are few studies that have tried to identify the stages of development of the Startup, they have paid little attention to a stage called the exit stage, which determines the sale of the business. Recently, Pugliese et al. (2016) recognized the need for a more complete understanding of the stages of development of the Startup and the importance of knowing how to manage each stage to achieve success. However, it is important to identify which factors of success are relevant or influence the stages of development. However, there isn't a work on literature review that organizes all these works in a systematic way that classifies the success factors into categories, that identifies the stages of development of the IT startup and that determines the factors that influence each stage of the life cycle. …

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