IDEAS home Printed from https://ideas.repec.org/a/ssi/jouesi/v8y2021i4p446-466.html
   My bibliography  Save this article

Critical success factors throughout the life cycle of information technology start-ups

Author

Listed:
  • José Santisteban

    (National University of San Marcos, Peru)

  • Jorge Inche

    (National University of San Marcos, Peru)

  • David Mauricio

    (National University of San Marcos, Peru)

Abstract

Information technology start-ups (ITSs) contribute towards the rapid growth of society as well as encourage innovation, create technical jobs, and support the economic and technological development of countries. Despite their importance, however, ITSs have a high failure rate worldwide, making it important to identify the factors that influence their success throughout the life cycle. Moreover, studies of this topic are scarce. This study aims to identify the factors that influence the success of an ITS throughout its development stages to mitigate the risks of failure. We review the critical success factors that affect ITSs and their life cycle stages based on the literature and consider the relationship between these factors and stages. An empirical study is carried out to test the presented hypotheses about the perceptions of 125 CEOs of ITSs in Peru using a descriptive analysis, simple and multiple correspondence analysis, and the Student’s t hypothesis test. Five stages of the life cycle of an ITS are established: seed, early, growth, expansion, and exit. Of the 93 hypotheses tested to assess the influence of 27 critical success factors, 77 are supported. This study proposes an ITS life cycle composed of five stages, defines the critical success factors for each of them, and establishes their influence in all stages.

Suggested Citation

  • José Santisteban & Jorge Inche & David Mauricio, 2021. "Critical success factors throughout the life cycle of information technology start-ups," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(4), pages 446-466, June.
    • Handle: RePEc:ssi:jouesi:v:8:y:2021:i:4:p:446-466
    DOI: 10.9770/jesi.2021.8.4(27)
    as

    Download full text from publisher

    File URL: https://jssidoi.org/jesi/uploads/articles/32/Santisteban_Critical_success_factors_throughout_the_life_cycle_of_information_technology_startups.pdf
    Download Restriction: no
    File URL: https://jssidoi.org/jesi/article/833
    Download Restriction: no
    File URL: https://libkey.io/10.9770/jesi.2021.8.4(27)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bernardo Balboni & Guido Bortoluzzi & Moreno Tivan & Andrea Tracogna & Francesco Venier, 2014. "The Growth Drivers of Start-up Firms and Business Modelling: A First Step toward a Desirable Convergence," Management, University of Primorska, Faculty of Management Koper, vol. 9(2), pages 131-154.
    2. Friar, John H & Meyer, Marc H, 2003. "Entrepreneurship and Start-Ups in the Boston Region: Factors differentiating High-Growth Ventures from Micro-ventures," Small Business Economics, Springer, vol. 21(2), pages 145-152, September.
    3. Marco Gelderen & Roy Thurik & Niels Bosma, 2006. "Success and Risk Factors in the Pre-Startup Phase," Small Business Economics, Springer, vol. 26(4), pages 319-335, May.
    4. Changsok Yoo & Dongwoo Yang & Huykang Kim & Eunnyeong Heo, 2012. "Key Value Drivers of Startup Companies in the New Media Industry—The Case of Online Games in Korea," Journal of Media Economics, Taylor & Francis Journals, vol. 25(4), pages 244-260, December.
    5. Rui Baptista & Murat Karaoez & Joana Mendonca, 2007. "Entrepreneurial Backgrounds, Human Capital and Start-up Success," Jena Economics Research Papers 2007-045, Friedrich-Schiller-University Jena.
    6. Baum, Joel A. C. & Silverman, Brian S., 2004. "Picking winners or building them? Alliance, intellectual, and human capital as selection criteria in venture financing and performance of biotechnology startups," Journal of Business Venturing, Elsevier, vol. 19(3), pages 411-436, May.
    7. Panagiotis Ganotakis, 2012. "Founders’ human capital and the performance of UK new technology based firms," Small Business Economics, Springer, vol. 39(2), pages 495-515, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ke Zhang & Shunmin Wang & Yuanyu Yu, 2023. "A TBGAV-Based Image-Text Multimodal Sentiment Analysis Method for Tourism Reviews," International Journal of Information Technology and Web Engineering (IJITWE), IGI Global, vol. 18(1), pages 1-17, January.
    2. Javier Sevilla-Bernardo & Blanca Sanchez-Robles & Teresa C. Herrador-Alcaide, 2022. "Success Factors of Startups in Research Literature within the Entrepreneurial Ecosystem," Administrative Sciences, MDPI, vol. 12(3), pages 1-24, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ke Zhang & Shunmin Wang & Yuanyu Yu, 2023. "A TBGAV-Based Image-Text Multimodal Sentiment Analysis Method for Tourism Reviews," International Journal of Information Technology and Web Engineering (IJITWE), IGI Global, vol. 18(1), pages 1-17, January.
    2. Thomas Ã…stebro & Kevyn Yong, 2016. "Invention Quality and Entrepreneurial Earnings: The Role of Prior Employment Variety," Entrepreneurship Theory and Practice, , vol. 40(2), pages 381-400, March.
    3. Jolanda Hessels & Marco Gelderen & Roy Thurik, 2008. "Entrepreneurial aspirations, motivations, and their drivers," Small Business Economics, Springer, vol. 31(3), pages 323-339, October.
    4. Honig, Benson & Samuelsson, Mikael, 2021. "Business planning by intrapreneurs and entrepreneurs under environmental uncertainty and institutional pressure," Technovation, Elsevier, vol. 99(C).
    5. Triantafyllia-Varvara Klada, 2018. "Unraveling Entrepreneurial Team Formation: A Qualitative Study Among Funded Ventures," SAGE Open, , vol. 8(2), pages 21582440187, May.
    6. Kim, Jongwoo & Kim, Hongil & Geum, Youngjung, 2023. "How to succeed in the market? Predicting startup success using a machine learning approach," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    7. Isabel Grilo & Roy Thurik, 2008. "Determinants of entrepreneurial engagement levels in Europe and the US," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 17(6), pages 1113-1145, December.
    8. Kranzusch, Peter & Kay, Rosemarie, 2011. "Das Gründerpanel des IfM Bonn: Konzeption und Nutzungsmöglichkeiten," IfM-Materialien 208, Institut für Mittelstandsforschung (IfM) Bonn.
    9. Erik Stam, 2010. "Entrepreneurship, Evolution and Geography," Chapters, in: Ron Boschma & Ron Martin (ed.), The Handbook of Evolutionary Economic Geography, chapter 6, Edward Elgar Publishing.
    10. Anthony J. Evans, 2016. "The unintended consequences of easy money: How access to finance impedes entrepreneurship," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 29(3), pages 233-252, September.
    11. Erik Stam & Roy Thurik & Peter van der Zwan, 2010. "Entrepreneurial exit in real and imagined markets," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(4), pages 1109-1139, August.
    12. Niels Bosma & Sander Wennekers, 2004. "Entrepreneurial Attitudes Versus Entrepreneurial Activities (GEM)," Scales Research Reports A200316, EIM Business and Policy Research.
    13. Sorin Gabriel Anton & Ionel Bostan, 2017. "The Role of Access to Finance in Explaining Cross-National Variation in Entrepreneurial Activity: A Panel Data Approach," Sustainability, MDPI, vol. 9(11), pages 1-16, October.
    14. Teixeira, Aurora A.C. & Tavares-Lehmann, Ana Teresa, 2014. "Human capital intensity in technology-based firms located in Portugal: Does foreign ownership matter?," Research Policy, Elsevier, vol. 43(4), pages 737-748.
    15. Shao, Yan & Sun, Lingxia, 2021. "Entrepreneurs’ social capital and venture capital financing," Journal of Business Research, Elsevier, vol. 136(C), pages 499-512.
    16. Hsu, David H., 2007. "Experienced entrepreneurial founders, organizational capital, and venture capital funding," Research Policy, Elsevier, vol. 36(5), pages 722-741, June.
    17. Xi, Guoqian & Block, Jörn & Lasch, Frank & Robert, Frank & Thurik, Roy, 2017. "How Does Firm Survival Differ between Business Takeovers and New Venture Start-ups?," IZA Discussion Papers 11155, Institute of Labor Economics (IZA).
    18. Benjamin Cole & Preeta Banerjee, 2013. "Morally Contentious Technology-Field Intersections: The Case of Biotechnology in the United States," Journal of Business Ethics, Springer, vol. 115(3), pages 555-574, July.
    19. Tomas Karlsson & Caroline Wigren, 2012. "Start-ups among university employees: the influence of legitimacy, human capital and social capital," The Journal of Technology Transfer, Springer, vol. 37(3), pages 297-312, June.
    20. Enrico Santarelli & Hien Tran, 2013. "The interplay of human and social capital in shaping entrepreneurial performance: the case of Vietnam," Small Business Economics, Springer, vol. 40(2), pages 435-458, February.

    More about this item

    Keywords

    critical success factors; life cycle; stage; IT startups; entrepreneurship;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ssi:jouesi:v:8:y:2021:i:4:p:446-466. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Manuela Tvaronaviciene (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.