Oct 2016· Empirical Software Engineering· Vol 22, pp. 2373 - 2408· 127 citations· ⚡ 15 influential· 39 references
Computer Science
TL;DR
This study conducts a case survey study based on the secondary data of the major pivots happened in 49 software startups, and demonstrates that customer need pivot is the most common among all pivot types.
Abstract
In the context of software startups, project failure is embraced actively and considered crucial to obtain validated learning that can lead to pivots. A pivot is the strategic change of a business concept, product or the different elements of a business model. A better understanding is needed on different types of pivots and different factors that lead to failures and trigger pivots, for software entrepreneurial teams to make better decisions under chaotic and unpredictable environment. Due to the nascent nature of the topic, the existing research and knowledge on the pivots of software startups are very limited. In this study, we aimed at identifying the major types of pivots that software startups make during their startup processes, and highlighting the factors that fail software projects and trigger pivots. To achieve this, we conducted a case survey study based on the secondary data of the major pivots happened in 49 software startups. 10 pivot types and 14 triggering factors were identified. The findings show that customer need pivot is the most common among all pivot types. Together with customer segment pivot, they are common market related pivots. The major product related pivots are zoom-in and technology pivots. Several new pivot types were identified, including market zoom-in, complete and side project pivots. Our study also demonstrates that negative customer reaction and flawed business model are the most common factors that trigger pivots in software startups. Our study extends the research knowledge on software startup pivot types and pivot triggering factors. Meanwhile it provides practical knowledge to software startups, which they can utilize to guide their effective decisions on pivoting.
Problem definition: Pivoting is a significant shift from the current product under development to an alternative opportunity. Pivoting is strongly advocated in the popular press and commonly used in entrepreneurial product development. However, a high fraction of startups that pivot still fail subsequently, since many entrepreneurs chase pivots that are ultimately not fruitful. We explore how an entrepreneur’s level of experience influences their decision to pivot. Experienced entrepreneurs, possessing a clearer perception of potential obstacles and opportunities, tend to exhibit reduced overconfidence.
Methodology/results: We develop a decision-theoretic model to analyze the entrepreneurial choice regarding pivoting, while accounting for the overconfidence, and market and pivot opportunity uncertainties. We show that lack of experience, i.e., a higher level of overconfidence, can systematically influence the pivot decisions. The effect of overconfidence on pivot decision depends on the market uncertainty of the pivot opportunity relative to that of the already initiated product. More specifically, we show that novice (more overconfident) entrepreneurs are likely to make radical risky pivots, whereas experienced (less overconfident) entrepreneurs are more likely to make safe pivots. We find that the dominant development errors for inexperienced founders relate to pivoting and persisting when faced with risky and safe pivots, respectively. Furthermore, we show that if pivoting can be postponed until after the product launch, novice founders are much more likely to postpone safe pivots than experienced founders. We also explore the effects of different types of experience on the entrepreneur’s pivoting decisions.
Managerial implications: Our results can benefit entrepreneurs in deciding how to set the duration of their supply chain contracts, choose the types of employees to hire, and select appropriate mentors, depending on the experience level of the founders and their likely pivot behavior. For startup incubators and accelerators, our results indicate what type of training programs to provide for entrepreneurs when accounting for their experience level.
J. Kettunen, Karthik Ramachandran· Manufacturing & Service...· 0 citations
The hybrid work format has become a new normal, but the question of what makes such teams genuinely effective remains open. Contrary to popular belief, the presence of digital platforms and advanced tools does not guarantee productivity growth. Moreover, technology investments often yield returns opposite to expectations - not because the software is substandard, but because structures and people cannot keep up with it. Based on a systematic review of studies published in recent years, the article shows that the root of the problem lies in the asynchrony of three components: technology, organizational design, and management culture. Each changes at its own pace, and it is the gap between them that becomes the main source of losses. The paper proposes a typology of organizational lags - temporal, competency-based, structural and cultural - as well as metrics and tools for their diagnosis and reduction. The main conclusion upends conventional logic: the effectiveness of hybrid teams is determined not by the level of digitalization, but by the degree of synchronization of changes. The results are addressed to managers who are looking not for another technology, but for a way to make what has already been implemented work.
Anton Sergeevich Sharapov· EKONOMIKA I UPRAVLENIE: PROB...· 0 citations
Seven major CSFs that drive success in globally distributed projects are revealed, highlighting a major paradigm shift within the software industry: socio-technical skills and reliable technology now carry significantly more weight than strict, traditional processes.
Chellal Mostafa, Mohammed Saber, M. Belkasmi· EPJ Web of Conferences· 0 citations
Launching a new business is a complex and dynamic process that requires entrepreneurs to overcome significant challenges through effective strategic responses, promoting sustainability and growth. Prior research has identified various challenges and strategies related to business startups. However, these studies have generally examined challenges and strategies separately, with limited integration of these key aspects into a cohesive framework that spans organizational, regional, and sectoral levels. This study addresses this gap through a systematic literature review by identifying, selecting, synthesizing, and integrating key challenges and strategies of start-ups into a unified model applicable across diverse contexts. Using a systematic review and document analysis guided by inclusion and exclusion criteria and the PRISMA framework, 79 scholarly articles published between 2020 and 2026 were systematically analyzed to generate new insights. The review highlights key challenges, including government policies and regulations, high start-up costs, intense competition, psychological pressures, marketing and customer acquisition, human resource management, and environmental uncertainty. These challenges create complex strategic demands, underscoring the need for effective strategies that help entrepreneurs manage and sustain their businesses. The study also identifies various strategies, including entrepreneurial traits, business planning, technology use, marketing tactics, financial support, research and development, strategic management, ethical practices, networking, and government assistance, which have been employed across different contexts to enhance survival, sustainability, profitability, competitiveness, and long-term success. Overall, the study suggests future research directions to further explore business start-up challenges and strategies across various contexts using comparative and context-sensitive approaches to advance theory and practice.
Chhayna Cheng· Journal of business administ...· 0 citations
The objective of this study is to investigate how major companies develop innovation projects in partnership with startups through the lens of corporate–startup engagement (CSE). The research aims to analyze the motivations, engagement models and internal validation processes for these partnerships, with a particular focus on the structural frictions that arise.
The research employs an exploratory and descriptive qualitative method. Data were collected through in-depth interviews and processed using content analysis to capture the micro-foundations of these collaborations.
The study reveals a significant gap between strategic intent and execution in CSE. Although corporations express a desire for disruptive, exploratory innovation, practical applications frequently devolve into projects focused on incremental operational efficiency. Major barriers are identified not merely as bureaucracy, but as fundamental structural frictions driven by corporate centralization, which constricts knowledge flows. Furthermore, the study identifies critical “pathbreakers” to collaboration, including severe speed mismatches and project dormancy driven by demands for uncompensated proof of concept (POCs).
The research is limited by a non-probabilistic sample and a limited number of interviews, which preclude generalizable empirical conclusions.
For corporate managers, the study emphasizes that establishing CSE requires intentional internal architecture – such as creating structural “shortcuts” and dedicated innovation units – to bypass the friction of centralized processes. For startups, it underscores the need for strategic alignment to navigate corporate requirements and avoid the pitfalls of speed mismatches and delayed financing.
The paper underscores the strategic importance of technological innovation for boosting national productivity and presents CSE as a vital alternative for economic development.
The research contributes to the theory of organizational ambidexterity by providing a multi-perspective empirical analysis (triangulating data from corporate managers, startup entrepreneurs and connecting agents). It explicitly maps the theoretical ““pathbreakers”“ and practical friction points that hinder the implementation of ambidextrous strategies.
A. Ghobril· Academia : Revista Latinoame...· 0 citations
The changing conditions affect all the economies of the world, but the most significant thing is that these conditions manifest themselves in small open economies with a high degree of dependence on external foreign economies partners. Because of it there is a need to proactively solve current issues and problems not only in economy, but also in geopolitics, logistics, medicine, security etc. Startups are businesses that are based on an innovative product and have high growth potential. Startups represent the potential to boost the national economy, enter the international market and provide a support to innovation. The most important difference between companies, which are just at the beginning of their lives, and start-ups is rapid growth, while area of business is no important. The aim of the article is to explore the theoretical foundations of startup companies. The article describes the life cycle phases of startup companies and categories of startups. The contribution of the article is to summarize the basic theory of startups, describes the concept of startup and examines the occurrence and sectors of start-up in the European Union.
I. Zhulega· EKONOMIKA I UPRAVLENIE: PROB...· 0 citations
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