The Impact of Technological Innovation on Business Model Innovation and Start-up Performance

Abstract

The success rate of start-up firms in Vietnam could be low 20.8%. To address this issue, improving start-up performance through technological innovation and business model innovation is crucial. The relationship between technological innovation, business model innovation (BMI), and start-up performance has yet to be widely examined in developing countries like Vietnam. This study employs Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze data from 425 entrepreneurs. The findings reveal that technological innovation has a positive impact on business model innovation and start-up performance; business model innovation also has a positive impact on start-up performance; and the study identifies the partial mediating role of business model innovation between technological innovation and start-up performance. The results have practical implications for entrepreneurs, start-up founders, and policymakers. It emphasizes investing in technological and business model innovations to improve start-up performance. Lastly, the study highlights some limitations and suggests future research directions.