How Does Effectual Logic Impact Survival of High-tech Startups in an Emerging Economy? - Evidence from 99tests.com Case Study

During the early stages of operation, high-tech startups need to overcome the liability of newness and manage high degree of uncertainty. Several high-tech startups fail due to inability to deal with skeptical customers, underdeveloped markets and limited resources in selling an offering that has no precedent. This paper leverages the principles of effectuation (a logic of entrepreneurial decision making under uncertainty) to explain the journey from creation to survival of high-tech startups in an emerging economy. Based on the 99tests.com case study, this paper suggests that early stage high-tech startups in emerging economies can increase their probability of survival by adopting the principles of effectuation.

Innovation and growth of engineering SMEs in Bangalore: Why do only some innovate and only some grow faster?

This paper probes two research questions by ascertaining the factors which distinguish (i) innovative SMEs from those which are not, and (ii) SMEs which experienced a higher sales growth from those which experienced a lower sales growth, with reference to 197 engineering industry SMEs in Bangalore city. The differentiating factors between innovative and non-innovative SMEs brought out that SMEs must have ``own resources and capabilities'' in the form of internal strength and definite internal strategy if they have to innovate successfully. Younger and smaller firms which are ``entrepreneurial'' in nature and which are innovative contributed to higher sales growth of SMEs compared to older and larger firms which are ``salary-substitute firms'' in nature and which are not innovative. (C) 2015 Elsevier B.V. All rights reserved.