An Assessment of Competitiveness of Technology-Based Startups in India

Abstract

This paper examines the role played by the entrepreneurial, firm-specific and external environment-related parameters in impacting the competitiveness of Indian high-tech start-ups, considering start-up survival as a milestone and using survival analysis techniques for the analysis. The study uses primary data collected from 175 Indian high-tech start-ups that are headquartered across the country, using a semi-structured questionnaire and in-depth interviews with the top-level management of the sample firms for analysis. Among the firm-related factors, sales and R&D capabilities of the start-ups have shown to be of paramount importance in influencing the competitiveness of high-tech start-ups. Further, among the external environment-specific attributes, the SDP growth in the region is shown to have significant influence on the competitiveness of high-tech start-ups (borderline significant). This paper makes a key contribution to the existing literature by empirically identifying the key entrepreneur-specific, firm-specific and external environment-specific factors of a firm that influence the competitiveness of high-tech start-ups that are in pre-growth stage in a developing economy. The findings of the study will help start-up owners and policy-makers to make adjustments in their policy-making and strategy to enhance the competitiveness of the technology-based startups operating in India.

A Decision-Making Framework for Entrepreneurial Venture in Emerging Economies

“…We develop propositions for implications of nature of decision problems and ecosystem on entrepreneurial growth mediated cost of experimentation. Satyanarayana et al, (2021) study the combined impact of entrepreneurial, firm-specific, and external environment-related factors on competitiveness of technology-based start-up. In this study, we propose experimentation-enabled decision-making as one possible mechanism through which some of these factors may affect firm and region/nation's competitiveness.…”

“…Competitiveness is relevant and studied across the different levels ranging from firm to region to nation (Momaya, 2019). For firm, it pertains to the capacity of the firm to viably compete in identified market; whereas for region or nation, it refers to ability to generate high and rising incomes and improve livelihoods of people (Satyanarayana et al, 2021). Firm strategy is one of the firm-specific factors determining competitiveness (Satyanarayana et al, 2021).…”

“…For firm, it pertains to the capacity of the firm to viably compete in identified market; whereas for region or nation, it refers to ability to generate high and rising incomes and improve livelihoods of people (Satyanarayana et al, 2021). Firm strategy is one of the firm-specific factors determining competitiveness (Satyanarayana et al, 2021). An efficient decision-making process will make entrepreneurial firm competitive by influencing firm strategy.…”

Does technology make start-ups resilient amidst COVID-19? A qualitative enquiry

“…(Sreenivasan and Suresh, 2021). In addition to challenges posed by coronavirus, there are many other reasons at macro level that lead to failure of start-ups, especially technology-based start-ups (Satyanarayana et al , 2021). Start-ups often work with scarce resources and are susceptible to adverse business scenarios.…”

How Conflicts Cause Technology Startups to Fail in India? An Empirical Analysis

“…Delivering scalable and consistent solutions require startups to establish simplified, reliable, and repeatable processes (Barringer & Ireland, 2012). The competitiveness of a firm establishes viability in a given market, subsequently expanded to international markets resulting in the achievement of sustainable and long-term growth and profitability (Satyanarayana et al, 2021). Startups focus on delivering customer experience and emphasizing closed-loop customer feedback as they progress in their lifecycle stages.…”