The Indian software industry

Abstract

Internationalization among small firms, and notably small knowledge-intensive firms (SKIFs), can be unusually rapid and is often influenced by three aspects of the international entrepreneur: knowledge, intent and networks. However, both internationalization-related and other entrepreneurial activities – and therefore international entrepreneurship – can be hampered by macroeconomic disincentives or a hostile environment. This often tends to be the case in developing economies such as India, given which, the success story of the Indian software industry acquires great significance as a notable exception to the rule. It has emerged as an exemplar for developing economy entrepreneurs seeking their fortune in the software and other industries. Drawing on the literature relevant to international entrepreneurship, as well as secondary and some primary data on the Indian software industry, this chapter points out that international entrepreneurs in a developing economy can be successful through their own entrepreneurial efforts, especially when encouraged and facilitated by favourable policy measures. There are, however, key challenges that they have to deal with.

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