Entrepreneurial Capabilities and Startup Performance: The Mediating Role of Business Model Innovation

Abstract

This study aims to examine the relationship between entrepreneurial capabilities and startup performance, with particular emphasis on the mediating role of business model innovation. The study adopts a quantitative research approach using survey data collected from startup founders and early-stage entrepreneurs. Measurement scales were validated and the mediation model proposed was tested in structural equation modeling. The findings show that entrepreneurial orientation, innovation capability, and risk-taking propensity have a significant impact on startup performance by business model innovation. The mediating effect emphasizes the role of new business models in converting entrepreneurial capabilities into performance outcomes. The research is valuable to the entrepreneurship literature because it empirically confirms the process where entrepreneurial capabilities influence startup success through business model innovation. The results offer meaningful suggestions to entrepreneurs and startup support institutions to consider business model innovation as a way of achieving sustainable performance. The paper describes a full mediation model that demonstrates how entrepreneurial capabilities are used to achieve startup performance in dynamic and competitive contexts.