Loading...
Paper Number
1761
Paper Type
Completed
Description
Nascent digital start-ups that leverage digital technology (DT) could use externally developed components (EDCs) to search for DT features needed for product-market fit (PMF). Drawing on the organizational search literature, we investigate the relationship between nascent digital start-ups' search breadth and search depth (in terms of EDCs use) on their time to achieve PMF (proxied by the receipt of Series A funding). We employ a survival analysis using data on startups and their EDC use from Crunchbase and LinkedIn. Our results reveal that higher search breadth reduces the time to PMF, whereas higher search depth increases it. Higher levels of interdependency between the DT and nascent digital start-ups’ business strengthen search breadth’s time reduction effect. Our findings contribute to the literature on digital entrepreneurship and organizational search and offer suggestions for how nascent digital start-ups should develop their DT in the early years.
Recommended Citation
Sun, Yichen; Lim, Shi-Ying; and Goh, Khim Yong, "Searching for Product-Market Fit with Externally Developed Components: Effects on Time to Product-Market Fit" (2023). ICIS 2023 Proceedings. 8.
https://aisel.aisnet.org/icis2023/isdesign/isdesign/8
Searching for Product-Market Fit with Externally Developed Components: Effects on Time to Product-Market Fit
Nascent digital start-ups that leverage digital technology (DT) could use externally developed components (EDCs) to search for DT features needed for product-market fit (PMF). Drawing on the organizational search literature, we investigate the relationship between nascent digital start-ups' search breadth and search depth (in terms of EDCs use) on their time to achieve PMF (proxied by the receipt of Series A funding). We employ a survival analysis using data on startups and their EDC use from Crunchbase and LinkedIn. Our results reveal that higher search breadth reduces the time to PMF, whereas higher search depth increases it. Higher levels of interdependency between the DT and nascent digital start-ups’ business strengthen search breadth’s time reduction effect. Our findings contribute to the literature on digital entrepreneurship and organizational search and offer suggestions for how nascent digital start-ups should develop their DT in the early years.
When commenting on articles, please be friendly, welcoming, respectful and abide by the AIS eLibrary Discussion Thread Code of Conduct posted here.
Comments
11-PM