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Securing their Future? Entry and Survival in the Information Security Industry

Nandkumar, Anand and Arora, Ashish (2008) Securing their Future? Entry and Survival in the Information Security Industry. [Industry Studies Working Paper:2008-23]



In this paper we study how the existence of a functioning market for technology differentially conditions the entry strategy and survival of different types of entrants, and the role of scale, marketing ability and technical assets using the context of the Information Security Market (ISM). Markets for technology facilitate entry of firms that lack proprietary technology and increase vertical specialization. However, they also increase the relative advantage of downstream capabilities, which is reflected in the relatively improved performance of incumbent Information and Communication Technologies (ICT) firms compared to startups. We find that diversifying entrants perform better relative to startups. Contrary to earlier studies, we find that spin-offs are rare in the ISM. Moreover, they do not perform any better than other startups. Also, firms founded by entrepreneurs from unrelated industries, perform markedly better than other startups. These findings reflect the non-manufacturing setting of this study, as well as the distinctive nature of software technology.

Industry Studies Series #:2008-23
Item Type:Industry Studies Working Paper
Uncontrolled Keywords:industry studies, industry studies working paper, industry studies association, industry studies research
ID Code:106
Deposited By:Mr Robin Peterson
Deposited On:23 Feb 2010 14:46
Last Modified:07 Jun 2010 10:45

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