|Title||Pivots in startups: Factors influencing business model innovation in startups|
|Publication Type||04. Conference Papers|
|Year of Publication||2014|
|Authors||Comberg, C., Seith F., German A., & Velamuri V. K.|
|Conference Name||The XXV ISPIM Conference – Innovation for Sustainable Economy & Society|
|Conference Location||Dublin, Ireland|
Pivoting, i.e. business model innovation in startups is a crucial topic for young firms, since the probability that startups create a first business model that immediately works without any errors in an environment of high uncertainty is often low. Although it is easier for startups to implement a new business model because of their agility; they often have just one shot to pivot due to limited financial resources. By applying an exploratory multiple case study approach, six factors that influence the pivoting process in startups were identified. These are: (1) role of founders, (2) sustainability of the BM, (3) cash and financing, (4) market conditions, (5) business financials, and (6) new technology. Further the impact of these key factors on the pivoting process of the firms under study is discussed. In total, our study emphasizes the importance of the identified triggers and influencing factors for a successful pivot.