Iranian Journal of Information Management

Typology of Failure Factors for Technological Start-ups in Information and Communication Technology (ICT) Sector

Document Type : Original Article

Authors

1 Ph.D. Student Department of Technology Management, Faculty of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran

2 Assistant Professor, Faculty of Management, Economics and Progress Engineering, Iran University of Science and Technology, Tehran, Iran

3 Assistant Professor, Department of Industrial Management, Karaj Branch, Islamic Azad University, Karaj, Iran

10.22034/aimj.2022.156214

Abstract

The importance of information and communication technology (ICT) start-ups in economic, social and entrepreneurial development, as well as their extensive uses in various industries and sectors, has led to their welcome and support. On the other hand, their failure rate is very high and makes it difficult for supporters and funders to predict their future success. Therefore, considering the distinct conditions and high rate of technological developments of the ICT industry compared to other sectors and its high share of GDP, the purpose of this study, is to identify the local failure factors of ICT start-ups by interviewing experts and practitioners.This article is an applied, qualitative and quantitative research based on inductive approach which extracted failure factors using qualitative thematic analysis with MAXQDA software and then, these factors were ranked by using the fuzzy best-worst method through Excel and Lingo softwares.The basic themes extracted from the text of the interviews were classified into fourteen organizing themes and three global themes: internal factors of the start-up, near environmental factors and distant environmental factors. The results showed that the start-up internal factors, close and distant environment have the greatest impact on the failure of ICT start-up, respectively. The entrepreneurial team and the government were also recognized as the most important internal and external factors for the start-ups failure. From the point of view of all experts, an entrepreneurial team with complementary specialties and different capabilities can overcome all the challenges of the business development path. In their view, the government should play proper governance role, including regulation and enacting new laws in this area.
 

Keywords

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Iranian Journal of Information Management
Volume 7, Issue 2 - Serial Number 13
March 2022
Pages 49-74
  • Receive Date: 27 October 2021
  • Revise Date: 14 April 2022
  • Accept Date: 13 July 2022