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arXiv · 1711.07045

Towards understanding startup product development as effectual entrepreneurial behaviors

Anh Nguven Duc·Yngve Dahle·Martin Steinert·Pekka Abrahamsson
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Abstract

Software startups face with multiple technical and business challenges, which could make the startup journey longer, or even become a failure. Little is known about entrepreneurial decision making as a direct force to startup development outcome. In this study, we attempted to apply a behaviour theory of entrepreneurial firms to understand the root-cause of some software startup s challenges. Six common challenges related to prototyping and product development in twenty software startups were identified. We found the behaviour theory as a useful theoretical lens to explain the technical challenges. Software startups search for local optimal solutions, emphasise on short-run feedback rather than long-run strategies, which results in vague prototype planning, paradox of demonstration and evolving throw-away prototypes. The finding implies that effectual entrepreneurial processes might require a more suitable product development approach than the current state-of-practice.

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Anh Nguven Duc, Yngve Dahle, Martin Steinert, Pekka Abrahamsson. 2017-12-03. Towards understanding startup product development as effectual entrepreneurial behaviors. https://doi.org/10.1007/978-3-319-69191-6_15

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