The influence of start-up entrepreneurship and disruptive business model on firm performance

Abstract

Objective: This research aims to develop the constructs and to study the causal relationship between start-up entrepreneurship (SUE), disruptive business models (DBM), and firm performance (FPF) of start-ups in Thailand.

Research Design & Methods: A quantitative research, a total of 186 samples from start-ups in Thailand. Data were collected by using online questionnaires with an entrepreneur/start-up founder/co-founder per company. The data were analysed through structural equation modelling.

Findings: The new dimensions of SUE, DBM, and FPF reach a decent level of structural credibility and are suitable for measurement. SUE and DBM had a positive influence on FPF, while SUE had a positive influence on DBM as well.

Implications & Recommendations: The results could be used to advance the potential of start-up entrepreneurs, strengthen the existing business model, or decide to develop a new business model that could develop brand new products/services in the markets to meet customer needs that change with technology advancements.

Contribution & Value Added: The dimensions of the newly developed SUE, DBM, and FPF could be developed dynamically. These new dimensions have contributed to SUE acting as a mechanism of DBM development. The finding show that the new dimensions could be used to develop start-ups; to begin with, the new business model generation, technology-driven products/services development to meet the customer needs and seeking investors network. Thus, the impact of DBM will be strengthened, and the impact of FPF can gain a competitive advantage and improve profitability, as start-ups introduce a new business model with technological innovation that will redefine industries and restructure the economy.

Keywords

startup entrepreneurship, disruptive business model, firm performance, structural equation modelling

Author Biography

Napatsaporn Niyawanont

Dr. Napatsaporn Niyawanont is a lecturer in Entrepreneurship at Faculty of Management Sciences, Bansomdejchaopraya Rajabhat University. I obtain a PhD (Business Administration) at Faculty of Business Administration, Kasetsart University, Bangkok, Thailand.

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