Innovation Capability as a Mediator of Financial Resources, Digital Marketing Capability, Entrepreneurial Orientation, and Start-Up Growth

Abstract

This study examines how entrepreneurial orientation, digital marketing capability, and financial resource accessibility influence start-up growth, with innovation capability acting as a mediating mechanism. A quantitative research design was used, and data were collected from founders and managers of active start-ups. After screening for completeness, the final dataset was analyzed using structural equation modelling to assess direct effects and the mediating role of innovation capability. The results show that entrepreneurial orientation, digital marketing capability, and financial resource accessibility significantly enhance innovation capability. Innovation capability positively influences start-up growth and partially mediates the relationship between the independent variables and growth. The capability of digital marketing appeared to be the most predictive factor, and the accessibility of financial resources offered necessary support to the results of innovations. The results highlight that start-ups must integrate entrepreneurial behaviour, effective digital marketing procedures, and availability of financial assets to enhance innovation and growth. This paper incorporates entrepreneurship, marketing, and finance into one explanatory framework and how the availability of financial resources can strengthen entrepreneurial and marketing abilities to achieve innovation and sustainable start-up expansion.