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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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
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author Magaji Abdullahi Usman
Xinbo Sun
author_facet Magaji Abdullahi Usman
Xinbo Sun
author_sort Magaji Abdullahi Usman
collection DOAJ
description 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.
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spelling doaj.art-5403bb39f5dd4eeeabca8b77c37626562023-12-21T07:33:15ZengElsevierHeliyon2405-84402023-12-01912e22159The impact of digital platforms on new startup performance: Strategy as moderatorMagaji Abdullahi Usman0Xinbo Sun1Department of Business Administration, Northeastern University, 110169, ChinaCorresponding author.; Department of Business Administration, Northeastern University, 110169, ChinaRecent 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.http://www.sciencedirect.com/science/article/pii/S2405844023093672Digital platformsDigital startupsStrategyNew startup performance
spellingShingle Magaji Abdullahi Usman
Xinbo Sun
The impact of digital platforms on new startup performance: Strategy as moderator
Heliyon
Digital platforms
Digital startups
Strategy
New startup performance
title The impact of digital platforms on new startup performance: Strategy as moderator
title_full The impact of digital platforms on new startup performance: Strategy as moderator
title_fullStr The impact of digital platforms on new startup performance: Strategy as moderator
title_full_unstemmed The impact of digital platforms on new startup performance: Strategy as moderator
title_short The impact of digital platforms on new startup performance: Strategy as moderator
title_sort impact of digital platforms on new startup performance strategy as moderator
topic Digital platforms
Digital startups
Strategy
New startup performance
url http://www.sciencedirect.com/science/article/pii/S2405844023093672
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