Digital innovation and performance of student startups in Peru: A PLS-SEM evaluation

Type of the article: Research ArticleAbstractDigital innovation is critical to the competitiveness of university-based startups in emerging economies, yet empirical evidence contextualized to Peru remains limited. This study analyzes the effect of digital innovation, operationalized through digital marketing, process automation, and data analytics, on the performance of university startups in Peru using the PLS-SEM technique. We employed a quantitative design with a structured survey administered to founders or managers of 100 student startups affiliated with incubation programs at two private universities in Lima; the sample was selected for relevance (active operations and engagement with digital tools). Data were collected between August and November 2024 using multi-item Likert questionnaires. Reliability and validity were assessed with standard PLS-SEM criteria, and structural paths were evaluated via bootstrapping (5,000 resamples). Results indicate that digital marketing increases competitiveness (β = 0.54; p < .001), process automation improves operational efficiency (β = 0.41; p < .001), and data analytics strengthens strategic adaptability (β = 0.48; p < .001). Additionally, 56% of startups report financing constraints as the main barrier to digital transformation, followed by insufficient digital training (22%) and limited access to technology (15%). Taken together, these findings suggest that university incubators in resource-constrained contexts can enhance startup performance by prioritizing targeted financing instruments, hands-on training in automation and analytics, and affordable access to technology.