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

Author

Listed:
  • Autio, Erkko

    (Imperial College Business School)

  • Chiyachantana, Chiraphol

    (Singapore Management University)

  • Castillejos-Petalcorin, Cynthia

    (Asian Development Bank)

  • Fu, Kun

    (Loughborough University London)

  • Habaradas, Raymund

    (De La Salle University)

  • Jinjarak, Yothin

    (Asian Development Bank)

  • Muftiadi, Anang

    (Universitas Padjadjaran)

  • Park, Donghyun

    (Asian Development Bank)

  • Prasarnphanich, Pattarawan

    (Chulalongkorn University)

  • Quyên, Pham Minh

    (Thu Dau Mot University)

  • Smit, Willem

    (Fulbright University Vietnam)

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.

Suggested Citation

  • Autio, Erkko & Chiyachantana, Chiraphol & Castillejos-Petalcorin, Cynthia & Fu, Kun & Habaradas, Raymund & Jinjarak, Yothin & Muftiadi, Anang & Park, Donghyun & Prasarnphanich, Pattarawan & Quyên, Pha, 2024. "Adoption of Digital Technologies, Business Model Innovation, and Financial and Sustainability Performance in Start-Up Firms," ADB Economics Working Paper Series 734, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:0734
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    More about this item

    Keywords

    digitalization; business model innovation; entrepreneurial performance; ASEAN; sustainability performance;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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