Product Strategies and Startups' Survival in Turbulent Industries: Evidence from the Security Software Industry
Universidad Carlos III de Madrid - Department of Business Administration
Marco S. Giarratana
Department of Management & Technology
Universidad Carlos III de Madrid Business Economic Working Paper No. 16-04-48
This paper seeks to explore the drivers of startups' survival in turbulent industries, characterized by high rates of entry and exit, fragmented market shares, and a rapid pace of product innovation.
Specifically, the paper aims to underscore the role played by post-entry product strategies, along with their interaction, beyond that of pre-entry conditions.
Based on a sample of 270 startups that entered the Security Software Industry from 1989 till 1998, we find evidence that surviving entities are those that more aggressively adopt versioning and product portfolio strategies.
Interesting enough, strategic learning seems to play a major role: Focusing on one of the two product strategies commands a higher survival probability than adopting a mixed strategy.
Number of Pages in PDF File: 33
Keywords: Startups, Survival, Product Strategies, Turbulent Industries
JEL Classification: L86, O32, M13working papers series
Date posted: October 27, 2004
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