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Pivoting in Software Startups

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Fundamentals of Software Startups

Abstract

To be able to handle intense time pressure and survive in dynamic markets, software startups make critical decision constantly on whether to change directions or stay on chosen path. This is known as to pivot or to persevere in terms of lean startup. Pivot is an essential and crucial activity for software startups to initially survive, and then grow and eventually obtain a sustainable business model. We find several examples of software startups (Twitter, Instagram, etc.) that successfully pivoted during their entrepreneurial journey and became successful software companies. There is a lack of empirical evidences on why and how software startups make pivots. This chapter provides reader a better understanding on pivots, different types of pivots, and factors that trigger pivots. We employ case study and case survey methods. The results show that customer need, customer segment, product zoom-in, and technology pivots are the major types of pivots software startups have made. We also identify several new pivot types including market zoom-in, market zoom-out, complete, and side project pivots. Negative customer reaction and flawed business model are the prominent factors triggering pivots. The findings provide practical knowledge to software startups and practitioners, which they can utilize to better understand and perform pivots.

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Author information

Authors and Affiliations

  1. University of Calgary, Calgary, AB, Canada

    Sohaib Shahid Bajwa

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  1. Sohaib Shahid Bajwa
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Correspondence to Sohaib Shahid Bajwa .

Editor information

Editors and Affiliations

  1. Department of Business and IT, University of Southeast Norway, Bø i Telemark, Norway

    Anh Nguyen-Duc

  2. Center for Entrepreneurship, Reutlingen University, Reutlingen, Germany

    Jürgen Münch

  3. School of Technology, PUCRS, Porto Alegre, Brazil

    Rafael Prikladnicki

  4. Facoltà di Scienze e Tecnologie Informatiche, La Libera Università di Bolzano, Bolzano, Italy

    Xiaofeng Wang

  5. Faculty of Information Technology, University of Jyväskylä, Jyväskylä, Finland

    Pekka Abrahamsson

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Bajwa, S.S. (2020). Pivoting in Software Startups. In: Nguyen-Duc, A., Münch, J., Prikladnicki, R., Wang, X., Abrahamsson, P. (eds) Fundamentals of Software Startups. Springer, Cham. https://doi.org/10.1007/978-3-030-35983-6_2

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  • DOI: https://doi.org/10.1007/978-3-030-35983-6_2

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-35982-9

  • Online ISBN: 978-3-030-35983-6

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