The impact of digital platforms on new startup performance: Strategy as moderator

Recent studies have acknowledged the contribution of digital platforms to entrepreneurial activity. However, little has been discovered regarding the way digital platforms impact new start-ups' performance and how strategy affects this relationship. This study investigated this phenomenon using...

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Bibliographic Details
Main Authors: Magaji Abdullahi Usman, Xinbo Sun
Format: Article
Language:English
Published: Elsevier 2023-12-01
Series:Heliyon
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2405844023093672
Description
Summary:Recent studies have acknowledged the contribution of digital platforms to entrepreneurial activity. However, little has been discovered regarding the way digital platforms impact new start-ups' performance and how strategy affects this relationship. This study investigated this phenomenon using a structural equation model based on entrepreneurial bricolage and environmental strategy performance theory. The current findings indicate that broader market outreach, cost-effectiveness, and network effect produce a favorable, direct, and substantial effect on new startup performance. Furthermore, strategy moderates the effects of broader market outreach, network effect, and cost-effectiveness on new startup performance. Furthermore, strategy moderates the impact of broader market outreach, network effect, and cost-effectiveness on new startup performance. The Chinese government in particular, and governments of various emerging nations generally, must pay close attention to the results of this research to design policies that will not only lengthen the lifespan of small businesses but also promote rapid expansion as well as innovation of digital start-ups.
ISSN:2405-8440