Turning Lemons into Lemonade: Mediating Collaborative Innovation through Digital Transformation for Sustainable Entrepreneurship

This study employs structural equation modelling and a 5-point Likert scale to examine the relationship among Digital Transformation, Collaborative Innovation, and Sustainable Entrepreneurship. Utilising Variance Inflation Factors (VIF) for collinearity assessment, the inner model demonstrates stable construct relationships despite moderate VIF values. When collinearity is evaluated using Variance Inflation Factors (VIF), the inner model shows robust construct correlations even with moderate VIF values. The results of path coefficient analysis show that collaborative innovation and digital transformation have a major, beneficial impact on sustainable entrepreneurship. The psychometric assessments ensure the reliability and validity of the constructs in the measurement model. The model selection of the study based upon Bayesian Information Criterion (BIC), sustains the efficacy of models, incorporating Collaborative Innovation and Sustainable Development by accentuating their critical charities to accomplish a frugal and effective model fit, vibrant for understanding multifarious phenomena. Specifically, f-square values highlight the practical significance of effect size measurements. Overall, this study offers a clear knowledge of the connections between these important concepts, which will be helpful for practitioners and policymakers as they promote sustainable entrepreneurship through collaborative innovation and digital transformation.