Influential Factors of Software Firms’ Performance in the Industry of Developing Countries

Abstract

This paper delves into the intricate dynamics of new product development within software firms, with a particular emphasis on the context of Bangladesh. The study recognizes the significance of radical marketing strategies in distinguishing firms from their competitors and explores the challenges faced by businesses in Dhaka, Bangladesh, in establishing robust customer connections. Through an extensive literature review, the paper examines key concepts such as marketing performance measurement, innovation, market orientation, and the role of information technology across various sectors. Building upon this foundation, the paper presents a set of hypotheses that aim to elucidate the mediation effects of new product advantage and the impact of customer unfamiliarity on the relationship between product radicalness and firm performance. These hypotheses are grounded in prior research and provide a framework for investigating the specific dynamics at play in the software industry of Bangladesh. Methodologically, the study employs a structured questionnaire administered to a sample of 27 software companies in Bangladesh, encompassing various roles such as project managers, developers, marketing executives, and sales directors. Data collection involves personal interviews, phone interviews, and Google Forms surveys, allowing for a comprehensive understanding of the strategies employed by these companies in new product development and marketing. The analysis of results reveals intriguing insights into how product radicalness, new product advantage, and customer unfamiliarity interact to influence firm performance in the software industry. Through a nuanced examination of these relationships, the study contributes valuable knowledge to the field, shedding light on the factors that shape the success of new product launches in a rapidly evolving market landscape. In conclusion, the paper highlights the implications of its findings for software companies in Bangladesh, offering actionable insights for enhancing marketing efficacy and driving innovation. While acknowledging the study’s limitations, the paper calls for further research to expand upon its findings and explore diverse contexts beyond the borders of Bangladesh. Ultimately, this research serves as a stepping stone towards a deeper understanding of new product development strategies in the software sector, with broader implications for innovation and marketing practices worldwide.