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JUNE 2011<br />

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 3, NO 2<br />

Likert scale technique is used to quantify them, which are then subjected to statistical<br />

analysis. This study uses convenient sampling due to lack of identification to the software<br />

firms and selects 60 software houses. 29 software houses were surveyed from Lahore<br />

while total number of software house in Lahore is 105 (27.62%). Similarly, 17 software<br />

houses from Karachi out of 129 (13.33%), 13 from Islamabad and Rawalpindi out of 79<br />

(16.46%) and 3 from other cities. Right and left panel of the diagram explain the<br />

decomposition of software industry and firm growth in relation with associated factors,<br />

respectively.<br />

Figure 1: Segmentation of Software Industry and Classification of Associated<br />

Factors<br />

Source: Authors’ own compilation<br />

5. Empirical Findings<br />

For inquiring the existence of association between firm growth and internal and external<br />

factors that are suspected to influence firm growth, chi-square is used. Moreover, the<br />

coefficient of contingency is also calculated to find the relative strength of association.<br />

Level of sales, profit, employment, output and clientele are five measures of firm growth<br />

that are used in this study. These proxies of firm growth are tested for their association<br />

with internal and external factors.<br />

5.1. Entrepreneur-related Factors<br />

5.1.1 Age of Entrepreneur<br />

5.1.1.1 Customer Trend<br />

H A : There is association between Customer Trend and Age of Entrepreneur.<br />

COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 2014

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