A multi-case study of software engineering practices in early-stage startups.

Abstract

Early-stage startups, often formed by small teams with innovative yet invalidated ideas, face the crucial challenge of proving their concepts in the market. These ideas are shaped by a flexible business model that adjusts until a repeatable, scalable approach emerges. Under constant pressure to deliver a minimum viable product quickly, software startups focus on technological solutions. Operating in a highly competitive environment alongside companies of various sizes, these startups face specific challenges. Recent research has explored these companies’ context, objectives, challenges, and practices in depth. Although extensive studies have examined the involvement of software startups in systems development, a gap remains in understanding how they select and implement specific practices in this process. Understanding their methods and approaches is essential, as they directly affect their ability to overcome the industry’s inherent challenges. Key questions include: What characteristics define software development in startups? How do these companies prioritize product quality attributes? Which software engineering practices underpin their efforts, and which ones drive their progress? A lack of understanding about selecting and implementing specific practices can lead to inadequate or inefficient processes, resulting in delays, increased costs, and reduced quality of the final product. Furthermore, this gap can compromise startups’ market competitiveness. This thesis offers insights into the development of early-stage software startups, highlighting their priorities, processes, and tools. Our research employs a qualitative approach, based on a multiple-case study involving 14 organizations. Data were analyzed using Grounded Theory techniques, including open, axial, and selective coding. The results highlight the importance of human factors, development processes, software engineering practices, and external influences in the trajectory of these startups. Understanding these elements enabled practical recommendations to strengthen software development in the early stages. Conclusions: This study identifies critical factors that influence software development in startups and presents guidelines to improve their practices in this early stage.