Driving Startup Success through Innovation Competence: Evidence from Emerging Economies during the COVID-19 Crisis using Structural Equation Analysis

Abstract

The global pandemic has profoundly disrupted entrepreneurial ecosystems worldwide, compelling startup enterprises to reconsider their strategic approaches for survival and growth. Despite these unprecedented challenges, newly established ventures remain instrumental in addressing evolving societal requirements and dynamic market conditions through innovative mechanisms. This research endeavors to examine a comprehensive framework linking innovation competence to startup organizational outcomes within the pandemic context. Utilizing primary data gathered from founders and co-founders of startup organizations in an emerging Southeast Asian economy, this investigation employs both descriptive statistical analysis and structural equation modeling techniques to assess the proposed theoretical constructs and their interrelationships. The empirical findings demonstrate that innovation competence exerts statistically significant positive effects on both financial metrics and operational effectiveness. Furthermore, the results reveal that collaborative innovation practices substantially and directly influence the financial standing and operational efficiency of nascent enterprises. These discoveries suggest that cultivating innovation competence within startup organizations can generate meaningful advancement and create valuable opportunities even during periods of economic uncertainty. This scholarly work contributes novel research trajectories and actionable recommendations concerning innovation competence and collaborative innovation strategies for enhancing startup organizational outcomes in developing economic contexts.