Rapid advances of IT have encouraged many software startups to enter the market place. Our research seeks to investigate the little-studied phenomenon of startup survival. The research is based on the resource-based view and on dynamic capabilities. We present a research model that investigates factors affecting software startup survival by examining how startups survive in their competitive environment. First, we categorize the resources of software startups into three areas based on socio-technical theory. Specifically, we view entrepreneurial resources as influencing both IT innovation and environmental resources. Second, we view dynamic capabilities as mediating the relationship between interactions among resources and software startup survival. Finally, we investigate the effect of competitive actions in moderating the relationship between dynamic capabilities and software startup survival. Our research seeks to contribute to extant research by proposing the first empirical study of which we are aware that addresses factors influencing software startup survival.
Shi, Yunfei and Xu, Dongming, "How Software Startups Survive: a Model based on Resource-based View and Dynamic Capabilities" (2013). ACIS 2013 Proceedings. 92.