A phenomenological exploration of technology start-up failure in Sri Lanka
PURPOSE: The main purpose of this qualitative study was to explore tech start-up failures in Sri Lanka to emerge themes that explain the critical factors that are impacting failures of Sri Lankan tech start-ups and also to identify recommendations that could help evade those factors. The paper also...
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| Format: | Article |
| Language: | English |
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Cognitione Foundation for the Dissemination of Knowledge and Science
2023-01-01
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| Series: | Journal of Entrepreneurship, Management and Innovation |
| Subjects: | |
| Online Access: | https://jemi.edu.pl/uploadedFiles/file/all-issues/vol19/issue3/JEMI_Vol19_Issue3_2023_Article2.pdf |
| _version_ | 1797635661903167488 |
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| author | Kesara Wimal Selvaratnam Ajendra |
| author_facet | Kesara Wimal Selvaratnam Ajendra |
| author_sort | Kesara Wimal |
| collection | DOAJ |
| description | PURPOSE: The main purpose of this qualitative study was to explore tech start-up failures in Sri Lanka to emerge themes that explain the critical factors that are impacting failures of Sri Lankan tech start-ups and also to identify recommendations that could help evade those factors. The paper also presents the finding to enrich tech entrepreneurs to build their strategies with an understanding of factors that leads to failure and to make well-educated decisions. METHODOLOGY: The study is based on a qualitative research approach that helps to present findings in a theoretical way. A phenomenological analysis has been used to identify, understand, and analyze the phenomena of tech start-up failures. Twelve start-up leaders participated in this study and shared their lived experiences of tech start-up failures in Sri Lanka. Interviews were conducted with them based on twelve interview questions and twelve core themes emerged based on the participants’ lived experiences. In analyzing data, the modified Van Kaam approach was used, utilizing a seven-step framework that considers the structural and textual aspects of experiences, as well as the perceptual characteristics of the phenomenon. FINDINGS: The themes answered the key research question of the study: What are the critical factors that are impacting on failures of tech start-ups in Sri Lanka? The cause of tech start-up failures according to the current study varied including, financial uncertainty, no market research, no product–market fit, paranoid behaviors of innovators, lack of timely response to changing conditions, and location of the venture. IMPLICATIONS: The paper concisely presents twelve critical reasons for tech start-up failures. The results of the research will enable Sri Lankan tech start-ups to identify key factors of failure for the growth of their surviving strategies. Identifying secret obstacles in the industry helps entrepreneurs prepare for pitfalls and provides guidelines for policymakers to make informed choices when implementing national policies. More importantly, it has been discovered that the major areas that require more attention are leadership, funding, marketing, and innovation. Finally, four groups of recommendations have been discussed under financing, market research, leadership, and inventors. ORIGINALITY AND VALUE: The comparison of the current study themes with the findings of related studies is inconclusive because the literature on tech start-up failures in other countries and in Sri Lanka is minimal. Some of the themes align with the findings of research conducted in other countries, although there were some themes that were explored uniquely. |
| first_indexed | 2024-03-11T12:24:31Z |
| format | Article |
| id | doaj.art-3e829ec9fd444b40bc4c4b735e8832c5 |
| institution | Directory Open Access Journal |
| issn | 2299-7326 |
| language | English |
| last_indexed | 2024-03-11T12:24:31Z |
| publishDate | 2023-01-01 |
| publisher | Cognitione Foundation for the Dissemination of Knowledge and Science |
| record_format | Article |
| series | Journal of Entrepreneurship, Management and Innovation |
| spelling | doaj.art-3e829ec9fd444b40bc4c4b735e8832c52023-11-06T11:27:58ZengCognitione Foundation for the Dissemination of Knowledge and ScienceJournal of Entrepreneurship, Management and Innovation2299-73262023-01-01193478610.7341/20231932A phenomenological exploration of technology start-up failure in Sri LankaKesara Wimal0Selvaratnam Ajendra1MBA, MSc in Advanced Software Engineering, School of Computer Science and Engineering, University of Westminster, London W1B 2HW, United KingdomMBA, ACMA, CGMA, Lecturer, Global Banking School (GBS), Greenford UB6 0HE, United KingdomPURPOSE: The main purpose of this qualitative study was to explore tech start-up failures in Sri Lanka to emerge themes that explain the critical factors that are impacting failures of Sri Lankan tech start-ups and also to identify recommendations that could help evade those factors. The paper also presents the finding to enrich tech entrepreneurs to build their strategies with an understanding of factors that leads to failure and to make well-educated decisions. METHODOLOGY: The study is based on a qualitative research approach that helps to present findings in a theoretical way. A phenomenological analysis has been used to identify, understand, and analyze the phenomena of tech start-up failures. Twelve start-up leaders participated in this study and shared their lived experiences of tech start-up failures in Sri Lanka. Interviews were conducted with them based on twelve interview questions and twelve core themes emerged based on the participants’ lived experiences. In analyzing data, the modified Van Kaam approach was used, utilizing a seven-step framework that considers the structural and textual aspects of experiences, as well as the perceptual characteristics of the phenomenon. FINDINGS: The themes answered the key research question of the study: What are the critical factors that are impacting on failures of tech start-ups in Sri Lanka? The cause of tech start-up failures according to the current study varied including, financial uncertainty, no market research, no product–market fit, paranoid behaviors of innovators, lack of timely response to changing conditions, and location of the venture. IMPLICATIONS: The paper concisely presents twelve critical reasons for tech start-up failures. The results of the research will enable Sri Lankan tech start-ups to identify key factors of failure for the growth of their surviving strategies. Identifying secret obstacles in the industry helps entrepreneurs prepare for pitfalls and provides guidelines for policymakers to make informed choices when implementing national policies. More importantly, it has been discovered that the major areas that require more attention are leadership, funding, marketing, and innovation. Finally, four groups of recommendations have been discussed under financing, market research, leadership, and inventors. ORIGINALITY AND VALUE: The comparison of the current study themes with the findings of related studies is inconclusive because the literature on tech start-up failures in other countries and in Sri Lanka is minimal. Some of the themes align with the findings of research conducted in other countries, although there were some themes that were explored uniquely.https://jemi.edu.pl/uploadedFiles/file/all-issues/vol19/issue3/JEMI_Vol19_Issue3_2023_Article2.pdfentrepreneurshiptech entrepreneurstart-up failurecritical success factorssoftware start-upsurvival strategiestechnology start-up |
| spellingShingle | Kesara Wimal Selvaratnam Ajendra A phenomenological exploration of technology start-up failure in Sri Lanka Journal of Entrepreneurship, Management and Innovation entrepreneurship tech entrepreneur start-up failure critical success factors software start-up survival strategies technology start-up |
| title | A phenomenological exploration of technology start-up failure in Sri Lanka |
| title_full | A phenomenological exploration of technology start-up failure in Sri Lanka |
| title_fullStr | A phenomenological exploration of technology start-up failure in Sri Lanka |
| title_full_unstemmed | A phenomenological exploration of technology start-up failure in Sri Lanka |
| title_short | A phenomenological exploration of technology start-up failure in Sri Lanka |
| title_sort | phenomenological exploration of technology start up failure in sri lanka |
| topic | entrepreneurship tech entrepreneur start-up failure critical success factors software start-up survival strategies technology start-up |
| url | https://jemi.edu.pl/uploadedFiles/file/all-issues/vol19/issue3/JEMI_Vol19_Issue3_2023_Article2.pdf |
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