Entrepreneurial Intention and the Performance of Digital Startups: The Mediating Role of Social Media

Abstract

The purpose of this study is to investigate the effect of entrepreneurial intention on performance development mediated by social media in digital start-ups. The study population includes the managers of 416 digital start-ups. Based on Cochran's formula and with an error level of 5% at 95% confidence level, the minimum number of samples for this study was estimated to be 199. To collect data, a standard 29-item questionnaire was distributed online in 2020. This research has investigated the relationships between variables by using PLS3 software and structural equation modelling. The results indicate that the components of entrepreneurial intention including knowledge sharing, reputation, social relations and identity have a positive effect on the performance of digital start-ups mediated by social media. Furthermore, the results show that successful companies are constantly creating and distributing new knowledge and rapidly applying it to new technologies and products.