Assessing the Impact of Perceived Market Competition and Technological Integration on Startup Governance

Abstract

In the evolving landscape of startup development, understanding the factors that influence governance quality is crucial for sustained growth and operational success. This study examines how perceived market competition and technology adoption impact governance quality in startup leaders, aiming to fill the gap in literature regarding the interplay of these factors in startup settings. A cross-sectional survey was conducted among 330 leaders from various startups across the technology, healthcare, and retail sectors. Data were collected using established scales: the Market Competition Intensity Scale for perceived market competition, the Technology Acceptance Model Scale for technology adoption, and the Corporate Governance Quality Scale for governance quality. Pearson correlation and linear regression analyses were performed using SPSS-27 to evaluate the relationships and predictive power of the independent variables on the dependent variable. The descriptive statistics indicated moderate to high levels of perceived market competition (Mean = 4.52, SD = 0.76) and technology adoption (Mean = 4.08, SD = 0.88), with governance quality also rated positively (Mean = 4.35, SD = 0.93). Pearson correlation revealed significant positive relationships between governance quality and perceived market competition (r = 0.29, p = 0.003), as well as technology adoption (r = 0.41, p < 0.0001). Regression analysis showed a significant model fit (F = 45.05, p < 0.0001), with an R² of 0.22, suggesting that both variables significantly predict governance quality. The study confirms that perceived market competition and technology adoption are significant predictors of governance quality in startups. The findings emphasize the importance of strategic management and technological enhancements in fostering effective governance structures, providing valuable insights for startup leaders and policymakers aimed at enhancing startup sustainability and effectiveness