Key Challenges in Big Data Startups: An Exploratory Study in Iran

Document Type : Research Paper

Authors

1 Department of Management of Technology, Faculty of Management and Accounting, College of Farabi, University of Tehran, Qom, Iran

2 Technology Studies Institute (TSI), Tehran, Iran

3 Department of Innovation and Entrepreneurship, HEC Montreal, Montreal, Canada

4 IT research Centre, ICT research institute, Tehran, Iran

5 Department of Industrial Management, Faculty of Management and Accounting, College of Farabi, University of Tehran, Qom, Iran

Abstract

Due to the explosion of data in recent years and the increase in its commercial application, big data and its analytics have attracted the attention of governments, academics, and practitioners, especially that of the startups. At the same time, regarding the recent nature of the phenomenon, entrepreneurship literature lacks a thorough understanding of the contextual challenges experienced by big data startups. Therefore, this study aims to contribute to the literature of big data entrepreneurship by identifying the environmental challenges of big data startups and exploring the priority of these challenges in the context of Iran, a developing IT market country. For this purpose, our research method is comprised of two phases: identifying the challenges of big data startups' using in-depth interviews and questionnaire, and prioritizing such challenges based on experts' assessments using a fuzzy analytic hierarchy process. Our findings revealed that lack of particular laws and policies for big data, lack of transparency, data mismanagement, financial challenges, technological and educational weaknesses, unawareness of big data advantages, and lack of willingness for utilizing it are the most significant challenges of big data startups in a developing context. The paper concludes with some policy and managerial recommendations for creating a supportive environment for startups.

Keywords

Main Subjects

References

Usher, A. (2015). AAPOR report on big data. American Association for Public Opinion Research.
Ahmed, F., & Kilic, K. (2019). Fuzzy Analytic Hierarchy Process: A performance analysis of various algorithms. Fuzzy Sets and Systems, 362, 110-128.
Bachlechner, D., & Leimbach, T. (2016, August). Big data challenges: Impact, potential responses and research needs. In 2016 IEEE International Conference on Emerging Technologies and Innovative Business Practices for the Transformation of Societies (EmergiTech) (pp. 257-264). IEEE.
Blaikie, N., & Priest, J. (2019). Designing social research: The logic of anticipation. John Wiley & Sons.
Blank, S. (2010). What's a startup? First principles. Steve Blank.
Buente, W., & Robbin, A. (2008). Trends in Internet information behavior, 2000–2004. Journal of the American Society for Information Science and Technology, 59(11), 1743-1760.
Chen, H., Chiang, R. H., & Storey, V. C. (2012). Business intelligence and analytics: From big data to big impact. MIS quarterly, 1165-1188.
Cheraghi, M., & Yaghmaei, E. (2017). Networks around Iranian entrepreneurs at home and in diaspora: Effects on performance. In Rezaei, M, Dana, L.P., & Ramadani, V. (Eds.), Iranian Entrepreneurship (pp. 263-275). Springer, Cham.
Cockayne, D. (2019). What is a startup firm? A methodological and epistemological investigation into research objects in economic geography. Geoforum, 107, 77-87.
Creswell, J. W. (2009). Mapping the field of mixed methods research. SAGE.
Cutler, Z. (Producer). (2014, December 11). 4 big challenges that startups face. https://www.entrepreneur.com/article/240742
Davenport, T. H., & Dyché, J. (2013). Big data in big companies. International Institute for Analytics, 3, 1-31.
Dawson, C., & Henley, A. (2012). "Push" versus "pull" entrepreneurship: an ambiguous distinction? International Journal of Entrepreneurial Behavior & Research, 18(6), 697-719.
Decker, R., Haltiwanger, J., Jarmin, R., & Miranda, J. (2014). The role of entrepreneurship in US job creation and economic dynamism. Journal of Economic Perspectives, 28(3), 3-24.
Del Vecchio, P., Ndou, V., Passiante, G., & Vrontis, D. (2020). Innovative entrepreneurship in action: From high-tech to digital entrepreneurship. In … (Eds.), Innovative entrepreneurship in action from high-tech to digital entrepreneurship (pp. 129-144). Springer International Publishing AG.
DiMaggio, P., Hargittai, E., Neuman, W. R., & Robinson, J. P. (2001). Social implications of the Internet. Annual Review of Sociology, 27(1), 307-336.
Gans, J. S., & Stern, S. (2003). The product market and the market for "ideas": Commercialization strategies for technology entrepreneurs. Research policy, 32(2), 333-350.
Gilbert, B. A., Audretsch, D. B., & McDougall, P. P. (2004). The emergence of entrepreneurship policy. Small Business Economics, 22(3-4), 313-323.
Global Entrepreneurship Monitor. (2018). … Retrieved from https://www.gemconsortium.org/report
Hilbert, M. (2014). Technological information inequality as an incessantly moving target: The redistribution of information and communication capacities between 1986 and 2010. Journal of the Association for Information Science and Technology, 65(4), 821-835.
Jozi, A. (2015, December 25). 15 challenges of Iran's startup ecosystem. http://techrasa.com/2015/12/25/15-challenges-of-irans-startup-ecosystem/
Kanani, M., & Goodarzi, M. (2017). Fostering new technology-based firms in Iran: Inspiration of world models in solving domestic challenges. In Soofi A.S., Goodarzi,M. … (Eds.), The development of science and technology in Iran (pp. 29-43). Palgrave Macmillan, New York.
Kanchana, R. S., Divya, J. V., & Beegom, A. A. (2013). Challenges faced by new entrepreneurs. International Journal of Current Research and Academic Review, 1(3), 71-78.
Kim, B., Kim, H., & Jeon, Y. (2018). Critical success factors of a design startup business. Sustainability, 10(9), 2981.
Kollmann, T., Stöckmann, C., Hensellek, S., & Kensbock, J. (2016). European Startup Monitor 2016. Universität Duisburg-Essen Lehrstuhl für E-Business.
KPMG. (2016). Startup Ecosystem Survey. KPMG.
288 Bahrami et al.
Kshetri, N. (2014). The emerging role of big data in key development issues: Opportunities, challenges, and concerns. Big Data & Society, 1(2), 2053951714564227.
Kurode, T., Kurode, A. V., & Moitra, K. (2016). A study of critical challenges in startup management. Available at SSRN 3348534.
Malagihal, S. S., & Hazarika, D. (2018). Challenges in startup ecosystem [Paper presentation]. National Conference on Management practices in startups, Hubball, Karnataka.
Mann, G. (2019, November 29). 3 big data challenges faced by all startups (and how to solve them). https://unito.io/blog/data-challenges-faced-by-startups-solutions/
Mantelero, A. (2014). Social control, transparency, and participation in the big data world. Journal of Internet Law, 17(10), 23-29.
McGowan, E. (2018, March 1). Startups. https://www.startups.com/library/expert-advice/what-is-a-startup-company.
Merriam, S. B., & Grenier, R. S. (Eds.). (2019). Qualitative research in practice: Examples for discussion and analysis. John Wiley & Sons.
Mor, Y. (2015, May 7). The top 5 challenges facing big data startups today. https://www.entrepreneur.com/article/245954
Nurcahyo, R., Akbar, M. I., & Gabriel, D. S. (2018). Characteristics of startup company and its strategy: Analysis of Indonesia fashion startup companies. International Journal of Engineering & Technology, 7(2.34), 44-47.
Pandey, S. C., & Pattnaik, P. N. (2017). People issues in startups: challenges and solutions. Strategic HR Review, 16(4), 194-196.
Patel, N. (2015, Jan 16). 90% of startups fail: Here's what you need to know about the 10%. Forbes. https://www.forbes.com/sites/neilpatel/2015/01/16/90-of-startups-will-fail-heres-what-you-need-to-know-about-the-10/#792078a86679
Pugna, I. B., Duțescu, A., & Stănilă, O. G. (2019). Corporate attitudes towards big data and its impact on performance management: A qualitative study. Sustainability, 11(3), 684.
Ries, E. (2011). The lean startup: How today's entrepreneurs use continuous innovation to create radically successful businesses. Currency.
Rosenberg, J. W., & Marron, D. B. (2015). Tax policy and investment by startups and innovative firms. Available at SSRN 2573259.
Salamzadeh, A. (2015). New venture creation: Controversial perspectives and theories. Economic Analysis, 48(3-4), 101-109.
Salamzadeh, A., Arasti, Z., & Elyasi, G. M. (2017). Creation of ICT-based social startups in Iran: A multiple case study. Journal of Enterprising Culture, 25(1), 97-122.
Salamzadeh, A., & Kawamorita Kesim, H. (2015). Startup companies: Life cycle and challenges [Paper presented]. 4th International conference on employment, education and entrepreneurship (EEE), Belgrade, Serbia.
Salamzadeh, A., & Kesim, H. K. (2017). The enterprising communities and startup ecosystem in Iran. Journal of Enterprising Communities: People and Places in the Global Economy.11(4), 456-479.
Simón-Moya, V., Revuelto-Taboada, L., & Guerrero, R. F. (2014). Institutional and economic drivers of entrepreneurship: An international perspective. Journal of Business Research, 67(5), 715-721.
Sopjani, X. (2019). Challenges and opportunities for startup innovation and entrepreneurship as tools towards a knowledge-based economy: The case of Kosovo.
Spender, J. -C., Corvello, V., Grimaldi, M., & Rippa, P. (2017). Startups and open innovation: A review of the literature. European Journal of Innovation Management, 20(1), 4-30.
Startup Genume. (2019). Global startup ecosystem report 2019. Startup Genume. https://startupgenome.com/reports/global-startup-ecosystem-report-2019
Tavakol, M. (2020, 7 Feb.). Sanctions and domestic constraints cripple Iran's startups. … https://www.atlanticcouncil.org/blogs/iransource/sanctions-and-domestic-constraints-cripple-irans-startups/
UNCTAD, D. P. R. (2016). International data flows: Implications for trade and development. United Nations. https://unctad.org/webflyer/data-protection-regulations-and-international-data-flows-implications-trade-and
Iranian Journal of Management Studies (IJMS) 2021, 14(2): 273-289 289
Vaghela, Y. (2018, June 28). Four common big data challenges. Dataversity: https://www.dataversity.net/four-common-big-data-challenges/
Wagner, J., & Sternberg, R. (2004). Startup activities, individual characteristics, and the regional milieu: Lessons for entrepreneurship support policies from German micro data. The Annals of Regional Science, 38(2), 219-240.
Wang, X., Edison, H., Bajwa, S. S., Giardino, C., & Abrahamsson, P. (2016, May). Key challenges in software startups across life cycle stages. In Sharp, .H, Tracy, H. … (Eds.), International Conference on Agile Software Development (pp. 169-182). Springer, Cham.
Wang, Y.-M., Luo, Y., & Hua, Z. (2008). On the extent analysis method for fuzzy AHP and its applications. European Journal of Operational Research, 186(2), 735-747.
Wymer, S. A., & Regan, E. A. (2005). Factors influencing e‐commerce adoption and use by small and medium businesses. Electronic Markets, 15(4), 438-453.
Xiao, Y., Lu, L. Y., Liu, J. S., & Zhou, Z. (2014). Knowledge diffusion path analysis of data quality literature: A main path analysis. Journal of Informetrics, 8(3), 594-605.
Yun, S. (2017). Research on entrepreneurial characteristics of fashion startup brands (Unpublished doctorial dissertation). Seoul National University.
Zhang, C., & Zhang, L. (2014). The financing challenges of startups in China. International Business and Management, 9(2), 130-137.
Interdisciplinary Journal of Management Studies (Formerly known as Iranian Journal of Management Studies)
Volume 14, Issue 2
April 2021
Pages 273-289

Files

Share

How to cite

Statistics