University of Oulu

Nirnaya Tripathi, Markku Oivo, Kari Liukkunen, Jouni Markkula, Startup ecosystem effect on minimum viable product development in software startups, Information and Software Technology, Volume 114, 2019, Pages 77-91, ISSN 0950-5849,

Startup ecosystem effect on minimum viable product development in software startups

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Author: Tripathi, Nirnaya1; Oivo, Markku1; Liukkunen, Kari1;
Organizations: 1M3S Research Group, University of Oulu, Oulu 90014, Finland
Format: article
Version: accepted version
Access: open
Online Access: PDF Full Text (PDF, 0.5 MB)
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Language: English
Published: Elsevier, 2019
Publish Date: 2021-10-31


Context: Software startups develop innovative products through which they scale their business rapidly, and thus, provide value to the economy, including job generation. However, most startups fail within two years of their launch because of a poor problem-solution fit and negligence of the learning process during minimum viable product (MVP) development. An ideal startup ecosystem can assist in MVP development by providing the necessary entrepreneurial education and technical skills to founding team members for identifying problem-solution fit for their product idea, allowing them to find the right product-market fit. However, existing knowledge on the effect of the startup ecosystem elements on the MVP development is limited.

Objective: The empirical study presented in this article aims to identify the effect of the six ecosystem elements (entrepreneurs, technology, market, support factors, finance, and human capital) on MVP development.

Method: We conducted a study with 13 software startups and five supporting organizations (accelerators, incubator, co-working space, and investment firm) in the startup ecosystem of the city of Oulu in Finland. Data were collected through semi-structured interviews, observation, and materials.

Results: The study results showed that internal sources are most common for identifying requirements for the product idea for MVP development. The findings indicate that supporting factors, such as incubators and accelerators, can influence MVP development by providing young founders with the necessary entrepreneurship skills and education needed to create the right product-market fit.

Conclusions: We conclude from this study of a regional startup ecosystem that the MVP development process is most affected by founding team members’ experiences and skill sets and by advanced technologies. Furthermore, a constructive startup ecosystem around software startups can boost up the creation of an effective MVP to test product ideas and find a product-market fit.

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Series: Information and software technology
ISSN: 0950-5849
ISSN-E: 1873-6025
ISSN-L: 0950-5849
Volume: 114
Pages: 77 - 91
DOI: 10.1016/j.infsof.2019.06.008
Type of Publication: A1 Journal article – refereed
Field of Science: 113 Computer and information sciences
Copyright information: © 2019 Elsevier B.V. All rights reserved. This manuscript version is made available under the CC-BY-NC-ND 4.0 license