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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)
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    References listed on IDEAS

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    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.
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    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.
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    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.
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    Cited by:

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    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

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