The role of the city in the innovative software entrepreneurship ecosystem: a qualitative study

While software entrepreneurship has experienced a substantial expansion in recent years, the existing body of literature is yet to explore the regional opportunities and challenges encountered within this nascent field. Through semi-structured interviews with 42 software representatives and using city, company, and human resource perspectives, this study aims to investigate the resource capabilities and major obstacles faced by software entrepreneurs in Izmir’s software ecosystem. Results of our content analysis show that resource capabilities and opportunities include an intention to collaborate, a positive city image, and a skilled workforce whereas challenges involve the absence of a robust investment culture, brain drain, and bureaucratic impediments. The potential and obstacles faced by software entrepreneurs in Izmir vary depending on the level of analysis, according to findings at the city, company, and human resource levels. By examining the resource capacities and challenges within Izmir’s software entrepreneurship ecosystem, with a focus on identifying the software-related strengths and barriers that shape an innovative urban environment supportive of entrepreneurial efforts, our research highlights both external factors that impact software investments and internal conditions enhancing Izmir’s attractiveness as a business hub. The findings suggest that Izmir’s software ecosystem has substantial potential to drive the city’s economic growth and position itself as a key contributor to urban innovation. Building on previous research that underlines the importance of clusters in promoting entrepreneurship and creating regional business opportunities, our study indicates a promising opportunity to foster software company clusters in Izmir. The study provides recommendations tailored for policymakers and industry leaders with an interest in advancing the software entrepreneurship ecosystem in Izmir as well as analogous emerging country ecosystems.