Adoption of Digital Technologies, Business Model Innovation, and Financial and Sustainability Performance in Start-Up Firms

Erkko Autio (), Chiraphol Chiyachantana (), Cynthia Castillejos-Petalcorin (), Kun Fu (), Raymund Habaradas (), Yothin Jinjarak (), Anang Muftiadi (), Donghyun Park, Pattarawan Prasarnphanich (), Pham Minh Quyên () and Willem Smit ()
Additional contact information
Erkko Autio: Imperial College Business School
Chiraphol Chiyachantana: Singapore Management University
Cynthia Castillejos-Petalcorin: Asian Development Bank
Kun Fu: Loughborough University London
Raymund Habaradas: De La Salle University
Yothin Jinjarak: Asian Development Bank
Anang Muftiadi: Universitas Padjadjaran
Pattarawan Prasarnphanich: Chulalongkorn University
Pham Minh Quyên: Thu Dau Mot University
Willem Smit: Fulbright University Vietnam

No 734, ADB Economics Working Paper Series from Asian Development Bank

Abstract: This report investigates the impact of digitalization on firm-level performance using survey data from 681 digital entrepreneurs across six Association of Southeast Asian Nations (ASEAN) countries. Results show that the reliance of the business on select digital applications and the digitalization of different aspects of the firm’s business models were found to be potent drivers of business model experimentation in entrepreneurial businesses. We also observed consistent mediation effects of digitalization variables on performance through their effect on business model experimentation, although the digitalization variables also exhibited strong direct effects on performance. This last observation signals that the adoption of digital technologies by entrepreneurial businesses has more wide-ranging beneficial impacts than their facilitating effect on business model experimentation. We consider the findings reported here to be of significant value for the design of entrepreneurial and digitalization policies in Asian developing economies and in emerging economies more widely. Our analysis points to important performance implications of digital technology adoption by entrepreneurial businesses.

Keywords: digitalization; business model innovation; entrepreneurial performance; ASEAN; sustainability performance (search for similar items in EconPapers)
JEL-codes: L26 O32 O33 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2024-07-22
New Economics Papers: this item is included in nep-cse, nep-ent, nep-pay, nep-sbm and nep-sea
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