The impact of network orientation and entrepreneurial orientation on startup innovation and performance in emerging economies: The moderating role of strategic flexibility

Abstract

While considerable scholarly attention has been paid to firm performance and prosperity, the performance implications of network and entrepreneurial orientations of startups in emerging economies are admittedly under-explained. Based on the resource-based view (RBV) and strategic fit theory, this study develops a research model to examine the impact of network orientation and entrepreneurial orientation on startup performance in emerging economies. The model also examines how this relationship is mediated through exploratory and exploitative innovation and moderated by strategic flexibility. Using data from a survey of 273 startups, the findings suggest that, at the initial and growth stages, entrepreneurial orientation has a greater impact on startup performance than network orientation. Exploratory innovation has a mediating effect on network orientation and startup performance. Exploitative innovation has a mediating effect on entrepreneurial orientation, network orientation, and startup performance. In the initial stage, exploitative innovation has a greater impact on startup performance, while in the growth stage, exploratory innovation has a greater impact on startup performance. Strategic flexibility plays a positive moderating role in the relationship between entrepreneurial orientation, exploratory innovation, exploitative innovation, and startup performance. These findings provide significant contributions to understanding the growth and performance of startups in emerging economies from a strategic and innovation-oriented perspective.