Amidst Uncertainty -- or Not? Decision-Making in Early-Stage Software Startups
This addresses a gap in empirical research on decision-making for software startup founders and entrepreneurs, though it is incremental as it builds on existing claims with a single case study.
The paper challenges the common claim that early-stage software startups operate in uniquely chaotic and uncertain environments by conducting an in-depth case study, finding that they do not experience more uncertainty than other firms.
It is commonly claimed that the initial stages of any startup business are dominated by continuous, extended uncertainty, in an environment that has even been described as chaotic. Consequently, decisions are made in uncertain circumstances, so making the right decision is crucial to successful business. However, little currently exists in the way of empirical studies into this supposed uncertainty. In this paper, we study decision-making in early-stage software startups by means of a single, in-depth case study. Based on our data, we argue that software startups do not work in a chaotic environment, nor are they characterized by unique uncertainty unlike that experienced by other firms.