ADDRESSING DIGITAL STARTUP FAILURE THROUGH THE AGILE METHODOLOGY APPROACH: A SYSTEMATIC LITERATURE REVIEW

Startups are recognized as emerging enterprises that contribute to job creation, economic stabilization, and national development. Digital startups are formed to address challenges within their environments. This study aims to provide solutions and preventive measures for digital startup failures, given the persistently high global failure rate of 90%. A systematic literature review (SLR) was conducted to identify Agile-based Critical Success Factors (CSFs), which were then mapped as solutions to mitigate digital startup failures. Based on the findings, the most significant contributing factor to the failure of digital startups is insufficient funding (i.e., running out of capital or financial resources). To address this issue, the agile method offers relevant solutions that can be mapped to the problem, namely the adoption of “Iterative Budget Management,” “Accurate Effort Estimation,” and “Risk Management Strategies.” This study provides practitioners with valuable insights, knowledge, and reference points regarding the critical success factors (CSFs) derived from agile practices, which can serve as strategic mechanisms for mitigating failure in early-stage startups. Moreover, the research is expected to contribute new theoretical understanding that informs potential solutions to prevent digital startup failure.