The impact of Entrepreneurial Orientation and Digitalization on Performance Sustainability with the Mediation of Knowledge Management in Digital Start-Ups

Sustainability enables a company to carry on its activities while taking advantage of their effect on human and environmental capital management. Although many studies have focused on entrepreneurial orientation and digitalization of business procedures, so far not much attention has been paid to the role of digitalization of business procedures in the development of digital startups, and at the same time, to its role as the mediating factor of knowledge management. Therefore, the current research aims to investigate whether entrepreneurial orientation and digitalization of business procedures affect performance sustainability with the mediating role of knowledge management in Iranian digital startups or not. For this purpose, the researchers used a quantitative method in digital start-ups at Tehran's Science and Technology Park. The study population entails 555 managers. Subsequently, based on Cochran's formula, 227 sample managers were selected for this study. The target Iranian start-ups were evaluated during in June and July 2023. The data were collected using a 24-item questionnaire, which was scored based on a 5-point Likert scale. Eventually, the data were analyzed using PLS4 software. The findings indicated that entrepreneurial orientation and digitalization of business procedures have a significantly positive impact on performance sustainability. Moreover, Knowledge management mediate the relationship between entrepreneurial orientation and digitalization of business procedures. The study suggests that digital startups can enhance their products, services, and internal processes by focusing on entrepreneurial orientation, digitalization, and effective knowledge management to navigate competitive market challenges effectively.