How Do Software Startups Pivot? Empirical Results from a Multiple Case Study
This addresses the problem of limited empirical knowledge on pivoting processes for software startups, though it is incremental as it builds on existing Lean Startup concepts.
The study investigated how software startups decide to pivot or persevere, identifying triggering factors and pivot types through a multiple case study of four startups, finding that different startups make various business and technology pivots triggered by factors like negative customer feedback.
In order to handle intense time pressure and survive in dynamic market, software startups have to make crucial decisions constantly on whether to change directions or stay on chosen courses, or in the terms of Lean Startup, to pivot or to persevere. The existing research and knowledge on software startup pivots are very limited. In this study, we focused on understanding the pivoting processes of software startups, and identified the triggering factors and pivot types. To achieve this, we employed a multiple case study approach, and analyzed the data obtained from four software startups. The initial findings show that different software startups make different types of pivots related to business and technology during their product development life cycle. The pivots are triggered by various factors including negative customer feedback.