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JUNE 2011<br />

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

5.4.3 Autonomy of Software Firms<br />

Data reveals that 71% of the software firms are subsidiary of some international software<br />

firm. These firms, through these linkages, get well-organized and have predefined setup<br />

and internal nimble culture. While remaining 29% firms have to strive for survival and<br />

progress using their local resources.<br />

[Insert Figure 14 about here.]<br />

5.4.4 Competitive Resources<br />

6% of the entrepreneurs consider physical resources as their strength, 48% reputational<br />

resources, 37% organizational resources, 10% financial resources, 79% intellectual<br />

resources and 74% technological resources. Jay Barney (1991) argued that the firms get<br />

sustained competitive advantage over others if the advantage is based on reputation,<br />

organizational and intellectual resources, as they are inimitable. But it is found that in<br />

software firms, people develop their comparative advantage on reputation, intellectual<br />

and technological resources which may prolong for longer period of time. They neglect<br />

the importance of organizational resources at a considerable level.<br />

[Insert Figure 15 about here.]<br />

5.4.5 System Software Developing Firms<br />

Since developing ‘system software’ requires high competency in software development,<br />

therefore, very few firms are developing device drivers, operating system (OS) and<br />

windowing systems. Firms developing ‘utility programs’ are higher in number. Such<br />

shows a potential for improvement in expertise of software development.<br />

[Insert Figure 16 about here.]<br />

5.4.6 Programming Software Developing Firms<br />

Due to low demand of programming software, its development is low in number. Few<br />

exceptions are NetSol, Systems International and AOS that are developing programming<br />

software for international market. 5% of the sample firms are developing device drivers,<br />

4% operating system, 18% utility programs, 4% windowing system and 54% firms are<br />

not developing programming software.<br />

[Insert Figure 17 about here.]<br />

5.4.7 Firms that are Developing Application Software<br />

82% of sample firms are developing customized software, 25% Industrial automation,<br />

8% video gaming , 7% image editing, 23% Science software, 35% telecom software,<br />

68% databases, 13% office software, 28% educational software, 17% web application,<br />

8% security tools, 3% military software and 32% are developing decision making<br />

software. The variety in developing software is evident.<br />

[Insert Figure 18 about here.]<br />

5.4.8 Type of Financing<br />

79% of the sample firms do equity financing, 6% Debt financing and 15% both. It is the<br />

most common mode of starting a business and there are many firms who use debt source<br />

of financing to fulfill their financial needs. It shows that investors’ trend to this industry.<br />

COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 2028

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