Digital Orientation and Practices Adopted by the New Startups: Antecedents and Influences on Firm’s Performance

Abstract

The digital orientation of startups represents a set of distinct behavioural dimensions emphasizing on planned adoption of digital technology. However, how startups become digitally oriented is unclear. Analysing the factors leading to adopting digital orientation can help startups learn the facets of strategy most influential in driving performance through digital technology use. The study uses the technique of structural equation modelling to establish entrepreneurial, market, technology and learning orientations as the antecedents of digital orientation. Survey data from 350 startup owners in India were collected by operationalizing the theoretical constructs using established scales. Subsequently, the direct impact of digital orientation on financial performance is examined. Further, the research provides implications for practitioners and policymakers.