Skip to content
2000
  1. Home
  2. A-Z Publications
  3. Journal of Fuzzy Logic and Modeling in Engineering
  4. Volume 1, Issue 2
  5. Article
Volume 1, Issue 2
  • ISSN: 2666-2949
  • E-ISSN: 2666-2957

Abstract

Tech startups are fast-growing businesses that target the demands of the marketplace by developing innovative products, services, or platforms. Startups ensure socially, economically, or environmentally more effective alternatives by using or by creating appropriate technologies. Many factors have become prominent regarding the success and sustainability of the product or service offered by the startup: investment, experience, and education of the team, the leadership of the management, creativity, innovation, technological breakthroughs, surrounding community, future perspective, target marketing strategy, location and the analysis of the market, . But since 80% of startups do not survive after five years, defining the important risk factors is crucial to develop the right strategies for successful startups. In this study, the risk factors have been defined based on the business model, which has an important place in the success of the technology startups, which use technology intensively. Comprehensive risk analysis on identified factors is presented to identify effective managerial strategies for technology startups to not fail.

Spherical Fuzzy Failure Mode and Impact Analysis (SFFMEA) was used within the framework of a business model canvas for risk analysis for the failure of technology startup projects. Due to the lack of recorded data for analysis, the opinions of field experts were used. While the business model canvas guided the identification of detailed risk factors, FMEA enabled the risk analysis of factors that cause startup projects to fail, and considering parameters related to the probability of the relevant risk factors, their impact on the failure of the project, and the detection level of the risk factor. Spherical Fuzzy, on the other hand, allowed the quantitative inference of FMEA's comprehensive parameter definitions associated with the risk factors through experts. Thus, all risk factors that may cause the failure of tech startups were ranked according to their risk priority numbers (RPNs), with the SFFMEA analysis, which offers a comprehensive risk analysis.

The findings show that the most important causes of the tech startup’s failure are “non-compliance with existing restrictions”, “inappropriate venture capital strategy”, and “lack of clustering support”.

These failure modes can be interpreted according to their frequency of encounter, potential effects, and detectability, and can be considered an important finding in the development of appropriate managerial strategies for the mitigation of the risk factors so the startups can survive in their first five years. Also, with the proposed risk analysis methodology, a comprehensive analysis of any startup project can be performed according to its conditions and characteristics.

© 2022 Bentham Science Publishers
Loading

Article metrics loading...

/content/journals/flme/10.2174/2666294901666220510102203
2022-09-01
2024-11-22

  • From This Site

    /content/journals/flme/10.2174/2666294901666220510102203
    dcterms_title,dcterms_subject,pub_keyword
    -contentType:Contributor -contentType:Concept -contentType:Institution
    10
    5
Loading full text...

Full text loading...

References

  1. MikleL. Startups and reasons for their failureSHS Web of Conferences, EDP Sciencesvol. Vol. 83, 2020p. 0104610.1051/shsconf/20208301046
     [Google Scholar]
  2. ZaheerH. BreyerY. DumayJ. EnjetiM. Straight from the horse’s mouth: Founders’ perspectives on achieving ‘traction’in digital start-ups.Comput. Human Behav.20199526227410.1016/j.chb.2018.03.002
     [Google Scholar]
  3. BuffardiK. RobbC. RahnD. Learning agile with tech startup software engineering projectsProceedings of the 2017 ACM Conference on Innovation and Technology in Computer Science Education2017283310.1145/3059009.3059063
     [Google Scholar]
  4. SantistebanJ. MauricioD. Systematic literature review of critical success factors of information technology startups.Acad. Entrepr. J.2017232123
     [Google Scholar]
  5. AlHazzaM.H. BouriniI.F. ZubaidahM. SelamatN.B. Success factor in new product development for startup companies using fuzzy logic approach2019 International Conference on Electrical and Computing Technologies and Applications (ICECTA)20191510.1109/ICECTA48151.2019.8959574
     [Google Scholar]
  6. JesemannI. BeichterT. HerburgerK. ConstantinescuC. RügerM. Migration of the lean-startup approach from high-tech startups towards product design in large manufacturing companies.Procedia CIRP20209159459910.1016/j.procir.2020.03.110
     [Google Scholar]
  7. KoperaS. Wszendybył-SkulskaE. CebulakJ. GrabowskiS. Interdisciplinarity in tech startups development: Case study of “unistartapp” project.Foundations of Management2018101233210.2478/fman‑2018‑0003
     [Google Scholar]
  8. OsterwalderA. PigneurY. Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers.HobokenJohn Wiley & Sons2010
     [Google Scholar]
  9. YagnikJ. Growth challenges of high-tech start-ups.ASCI J. Manag201746
     [Google Scholar]
  10. HormigaE. Batista-CaninoR.M. Sánchez-MedinaA. The role of intellectual capital in the success of new ventures.Int. Entrep. Manage. J.201171719210.1007/s11365‑010‑0139‑y
     [Google Scholar]
  11. CantamessaM. GatteschiV. PerboliG. RosanoM. Startups’ roads to failure.Sustainability2018107234610.3390/su10072346
     [Google Scholar]
  12. WangX. EdisonH. BajwaS.S. GiardinoC. AbrahamssonP. "Key challenges in software startups across life cycle stages. International Conference on Agile Software Development251 Springer Cham201610.1007/978‑3‑319‑33515‑5_14
     [Google Scholar]
  13. ChungW.Y. JoY. LeeD. Where should ICT startup companies be established? Efficiency comparison between cluster types.Telemat. Inform.vol. 56, pp. 101482, 202110.1016/j.tele.2020.101482
     [Google Scholar]
  14. DiasN.M.C.F. Failure factors of technological driven start-ups: Datris solutions case study, Master Thesis in International Business2018
     [Google Scholar]
  15. Sanz-PrietoI. L. de-la-fuente-Valentín, and S. Ríos-Aguilar, “Technical due diligence as a methodology for assessing risks in start-up ecosystems: An advanced approach”.Inf. Process. Manage.vol. 58, no. 5, pp. 102617, 202110.1016/j.ipm.2021.102617
     [Google Scholar]
  16. AkhavanM. SebtM.V. AmeliM. Risk assessment modeling for knowledge based and startup projects based on feasibility studies: A Bayesian network approach.Knowl. Base. Syst.vol. 222, pp. 106992, 202110.1016/j.knosys.2021.106992
     [Google Scholar]
  17. TebergaP.M.F. OlivaF.L. Identification, analysis and treatment of risks in the introduction of new technologies by start-ups.Benchmarking201825510.1108/BIJ‑06‑2017‑0156
     [Google Scholar]
  18. SreenivasanA. SureshM. Modeling the enablers of sourcing risks faced by startups in COVID-19 era.J. Glob. Oper. Strateg. Sourc202115210.1108/JGOSS‑12‑2020‑0070
     [Google Scholar]
  19. CoutoM.H.G. OlivaF.L. Del GiudiceM. KotabeM. ChinT. KelleP. Life cycle analysis of Brazilian startups: Characteristics, intellectual capital, agents and associated risks.J. Intellect. Cap.202110.1108/JIC‑01‑2021‑0005
     [Google Scholar]
  20. TebergaP.M.F. OlivaF.L. KotabeM. Risk analysis in introduction of new technologies by start-ups in the Brazilian market.Manage. Decis.201856110.1108/MD‑04‑2017‑0337
     [Google Scholar]
  21. SaputraA. IndradewaR. SyahT.Y.R. FajarwatiD. Risk management application for business startups ‘Jamu Partnership’ in Indonesia.Int. J. Res. Review20218814815510.52403/ijrr.20210821
     [Google Scholar]
  22. NordalY.A.B. A simple scenario-based qualitative model for assessing start-up risks"In Proceedings of the 2nd International Conference on Finance, Economics, Management and IT Business - FEMIB98105202010.5220/0009389500980105
     [Google Scholar]
  23. PolishchukV. KelemenM. GavurováB. VarotsosC. AndogaR. GeraM. ChristodoulakisJ. SoušekR. KozubaJ. HospodkaJ. BlišťanP. SzaboS.Jr A fuzzy model of risk assessment for environmental start-up projects in the air transport sector.Int. J. Environ. Res. Public Health20191619357310.3390/ijerph16193573 31554315
     [Google Scholar]
  24. SauraJ.R. Palos-SanchezP. GriloA. Detecting indicators for startup business success: Sentiment analysis using text data mining.Sustainability201911391710.3390/su11030917
     [Google Scholar]
  25. GiannakisM. PapadopoulosT. Supply chain sustainability: A risk management approach.Int. J. Prod. Econ.201617145547010.1016/j.ijpe.2015.06.032
     [Google Scholar]
  26. SharmaS.K. Risk adjusted total cost of ownership model for strategic sourcing decisions.Int. J. Procurement Manag.20169212314510.1504/IJPM.2016.075260
     [Google Scholar]
  27. ZareiE. AzadehA. KhakzadN. AliabadiM.M. MohammadfamI. Dynamic safety assessment of natural gas stations using Bayesian network.J. Hazard. Mater.201732183084010.1016/j.jhazmat.2016.09.074 27720467
     [Google Scholar]
  28. ZadehL.A. The concept of a linguistic variable and its application to approximate reasoning-III.Inf. Sci.197591438010.1016/0020‑0255(75)90017‑1
     [Google Scholar]
  29. BojadzievG. BojadzievM. Fuzzy logic for business, finance, and management., Advances in Fuzzy Systems - Applications and Theory. 2nd Edition. Vol. 23,200710.1142/6451
     [Google Scholar]
  30. SinghA. PatilA.J. SharmaR.K. JarialR. An innovative fuzzy modeling technique for transformer’s failure modes and effects analysisIn 2020 International Conference on Electrical and Electronics Engineering (ICE3), 2020 IEEE202010.1109/ICE348803.2020.9122822
     [Google Scholar]
  31. AkyuzE. AkgunI. CelikM. A fuzzy failure mode and effects approach to analyse concentrated inspection campaigns on board ships.Marit. Policy Manage.201643788790810.1080/03088839.2016.1173737
     [Google Scholar]
  32. AhmadiM. BehzadianK. ArdeshirA. KapelanZ. Comprehensive risk management using fuzzy FMEA and MCDA techniques in highway construction project.J. Civ. Eng. Manag.201723230031010.3846/13923730.2015.1068847
     [Google Scholar]
  33. Kutlu GündoğduF. KahramanC. A novel spherical fuzzy analytic hierarchy process and its renewable energy application.Soft Comput.2019244607462110.1007/s00500‑019‑04222‑w
     [Google Scholar]
  34. YildizD. TemurG.T. BeskeseA. BozburaT. A spherical fuzzy analytic hierarchy process-based approach to prioritize career management activities improving employee retention.J. Intell. Fuzzy Syst.20203956603661810.3233/JIFS‑189122
     [Google Scholar]
  35. GulM. AkM.F. A modified failure modes and effects analysis using interval-valued spherical fuzzy extension of TOPSIS method: Case study in a marble manufacturing facility.Soft Comput.2021256157617810.1007/s00500‑021‑05605‑8
     [Google Scholar]
  36. ZhouX. TianH. WangL.Y. HaijiZ.Y. Time‐varying FMEA method based on interval‐valued spherical fuzzy theory.Qual. Reliab. Eng. Int.20213783713372910.1002/qre.2943
     [Google Scholar]
  37. HaktanirE. KahramanC. A Literature Review on Fuzzy FMEA and an Application on Infant Car Seat Design Using Spherical Fuzzy Sets. Customer Oriented Product Design.Cham, SwitzerlandSpringer429449 202010.1007/978‑3‑030‑42188‑5_22
     [Google Scholar]
  38. LaddT. Does the business model canvas drive venture success?J. Res. Marketing Entrepreneurship2018201576910.1108/JRME‑11‑2016‑0046
     [Google Scholar]
/content/journals/flme/10.2174/2666294901666220510102203
Loading
FMEA Method Using Spherical Fuzzy Sets for Risk Analysis of the Tech Startup
Journal of Fuzzy Logic and Modeling in Engineering 1, e100522204512 (2022); https://doi.org/10.2174/2666294901666220510102203
/content/journals/flme/10.2174/2666294901666220510102203
/content/journals/flme/10.2174/2666294901666220510102203
Loading

Data & Media loading...


  • Article Type:     Research Article
Keyword(s): business model canvas; failure mode effect analysis; fuzzy sets; risk priority number; spherical fuzzy sets; Technological startups

Most Cited Most Cited RSS feed

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error
Please enter a valid_number test