A Study on the impact of employee perception on the success of IT startups

Abstract

Setting up and running new IT based businesses become more challenging and frustrating for entrepreneurs, investors and employees because of the instability of internal and external environments. Not like well- established organizations, usually the stakeholders of startups share a different state of risk factors among them. This study demonstrates how the perception of employees impacts on success of startups. Eight constructs (Confidence and trust in the owner or partners (CTOP), Confidence and trust in the organisation (CTO), Interest in the employees’ future (IEF), Fare remuneration and benefits (FRB), Actively seeking employees’ ideas and opinions (ASIO), Communicating information and needs in the organisation (CINO), Train employees to solve problems (TESP), Recognising employees’ involvement and accomplishments (REIA) ) have been used to derive the perceived value of employees. Four constructs (Growth, Profitability, Investment on R&D, Customers Satisfaction) are used to measure the success of IT startups. The main hypothesis of this model is proven in this research study in which perception of employees is positively related to success of IT startups. Some factors such that Confidence and trust in the owner or partners (CTOP), Confidence and trust in the organisation (CTO), Interest in the employees’ future (IEF) and Interest in the employees’ future (IEF) have respectively higher correlation to the perception of employees in IT startups. Similarly profitability (PRO) and growth (GR) indicates a higher correlation to determine the success of startups. The main constructs identified in this research has correlated to its related constructs while below attributes has been statistically proven that has no correlation to its related constructs these are; CINO_AI (Access to the org Information), FRB_IB (Incentives/ Bonuses), CTOP_DE (Determination of owner), CTOP_E (Experience of owner), CTOP_SS (Social skills-networking with the targeted audience), SIO_JI (Job involvement) and CTOP_SK(Skill and knowledge of owner