Approach for Analysing Capabilities in Latecomer Software Companies

Software development activities have been identified as a 'window of opportunity' for latecomer companies. Notwithstanding the growth of software development activities in the latecomers, there are single exceptional cases of companies that have successfully launched their own products in global software markets. This suggests that most of the latecomer software companies possess limited technological capabilities. This point has not been explored systematically in the literature so far, as the critical literature review reveals. This paper develops an approach for analysing technological capabilities in latecomer software industries. It outlines the specifics in analysing technological capability in latecomer software companies and makes an account of the array of technical and organisational capabilities associated with development of software technological capability. The research also looks at the diverse learning paths pursued by the latecomer companies in developing software activities. The study improves our understanding about the complexity in developing software industries in latecomer context, and the challenges the latecomer companies face in entering and competing in international markets.