Digital Entrepreneurial Orientation, Technology Absorptive Capacity, and Digital Innovation on Business Performance

The purpose of this study was to investigate the factors affecting digital entrepreneurial orientation, technology absorptive capacity, and digital innovation in business performance. To achieve the purpose of research, digital entrepreneurial orientation, technology absorptive capacity, digital innovation, and business performance (financial and technological performance) were chosen as research variables to explore the relationship effects and medicating effects. Industry type variable was selected to examine moderating effect. Industry type, employees’ numbers, and sales volumes were used as control variables to identify compounding effects of variables. A survey questionnaire was developed, and the proposed model was analyzed to target 122 small and medium venture enterprises (SMEs) in Republic of Korea. Smart PLS 4.0 and SPSS 27.0 were utilized to derive the study results as follows. First, digital entrepreneurial orientation and technology absorptive capacity have a positive influence on digital innovation. Second, digital entrepreneurial orientation has a positive impact on technology absorptive capacity. Finally, digital innovation has a positive effect on financial and technological business performance. The results of this study provide strategic implications for digital innovation and business performance for firms pursuing digital transformation. Therefore, firm managers should prioritize digital entrepreneurial orientation and technology absorptive capacity to improve business performance.