THE ROLE OF TECHNOLOGICAL INNOVATION IN SUCCESS OF STARTUPS IN ALGERIA

Authors

DOI:

https://doi.org/10.26668/businessreview/2024.v9i5.4708

Keywords:

Innovation, Technological Innovation, Startups, Entrepreneurship, Startup Ecosystem

Abstract

Objective: The objective of this study is to investigate the role of technological innovation in the success of startups in Algeria, with the aim of musering impact of Technological innovation has a positive impact on the survival of emerging enterprises by providing innovative products or services, which enhances their chances of survival in the market, and their innovative business models that help them compete and survive for a longer period in the market.

 

Theoretical Framework: In this topic, the main concepts and theories that underpin the research are presented. Rupert Maclaurin developed Schumpeter's ideas and analysed technological innovation as a process and proposed the theory of technological innovation, which was later called the linear model of innovation, and Skawińska and Zalewski see that: Success of startups is about achieving a competitive advantage, which is embodied in the possession and application of intangible and unique resources and skills to meet the needs of the market faster and in a better way than competitors .  stand out, providing a solid basis for understanding the context of the investigation.

 

Method: The methodology adopted for this research comprises studying a sample of Algerian startups. Technological innovation in startups has been measured through three dimensions: product or service, process, and business. As for the impact on the success of startups, it has been measured through four dimensions: financing, revenues, employment, and survival. Data collection was carried out through by a questionnaire was presented in this study to a sample of startups in Algeria, and analysing the data based by the statistical program SPSS, V29 and partial least squares path modelling with Plspm package of the R program].

 

Results and Discussion: The results obtained revealed that there is a positive impact of technological innovation on the success of startups and on both financing, revenues, employment, and survival. Besides, there are no statistically significant differences for personal and professional variables, except for gender, on the success of startups in Algeria. In the discussion section, these results are contextualized in light of the theoretical framework, highlighting the implications and relationships identified. Possible discrepancies and limitations of the study are also considered in this section.

Research Implications: The practical and theoretical implications of this research are discussed, providing insights into how the results can be applied or influence practices in the field of Business management for startups. These implications could encompass small and medium enterprises in the North African region.

 

Originality/Value: This study contributes to the literature by  accessing a new field of knowledge in Algeria, represented by emerging institutions, and the challenge of their continuity and success in competitive markets, as well as the use of new statistical methods. The relevance and value of this research are evidenced by  confirmed results that the Technological innovation have a positive impact on financing Starups through innovative products and services provided by enterprises, which lead to increased investment and attract investor interest in emerging enterprises that have an innovative and scalable business model, improving opportunities for obtaining financing, as well as gaining new clients and users to create a new revenue streams through innovative products and services provided, and innovation in the process also contributes to reducing costs and increasing revenues.

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Published

2024-05-13

How to Cite

Asma, Y., El-Khir, B. O., & Laarbi, B. M. (2024). THE ROLE OF TECHNOLOGICAL INNOVATION IN SUCCESS OF STARTUPS IN ALGERIA. International Journal of Professional Business Review, 9(5), e04708. https://doi.org/10.26668/businessreview/2024.v9i5.4708