Proving wrong the hypothesize that R&D and marketing caliber underlines the success of a software firm, higher operational capabilities revealed to be the success formula for software firms by a group of researchers led by Shanling Li of McGill University. The study stressed that firms which persist and survive over the long term in the dynamic software industry are able to capitalize on their competitive actions because of their greater capabilities, and particularly OP capabilities. The insights given by the study will prove vital for the volatile software industry where success and failure depends on a single action adopted by them. Firms with a greater emphasis on innovation-related than resource-related competitive actions have a greater livelihood for survival and will be encouraging for firms having higher MK and OP capabilities since they will have a higher chance for survival. 
A wider breakdown study of sub sectors within the software industry reveal that firms producing visual applications like graphical and video game software have the highest marketing capability but the lowest OP and RD capabilities and make twice as many innovation-related as resource-related moves. Though these firms have the highest market values, they are at a high risk for failure, and indeed the firms in this sector fail at a greater rate than expected. But this will be a contrast in capability to the different competitive moves made by firms producing traditional decision-support applications and infrastructure software. The study emphasized that companies with high levels of innovation-related competitive actions but low operating capability were 466 percent more likely to fail than the average. The study which examined a cross-sectional, time series panel of 5,827 observations on 870 software companies from 1995 to 2007 used methodologies like Cox proportional hazard regression technique and stochastic frontier production function to measure the capability for each software firm in each time period. 
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