The Influence of Entrepreneurial Self-Efficacy and Innovation on Firm Performance: Evidence from Thai Startup Firms

Abstract

This descriptive case study examined the relationship between entrepreneurial self-efficacy and innovation and the business success of digital startup firms. Qualitative data was collected from in-depth interviews with entrepreneur-founders from four leading digital startups. In addition, interviewees completed a questionnaire measuring self-rated ESE and innovation to confirm whether the qualitative interviews were in accordance with the quantitative analysis. The results showed that ESE and innovation has a direct positive relationship to the financial and customer aspects of firm performance. ESE influences innovation, which in turn corresponds to firm performance. As juvenile organizations that are just venturing into entrepreneurship, startup firms inevitably face a unique set of obstacles. The performance of new ventures varied depending on the startup’s stage and type of business. Entrepreneurs should focus on specific goals to survive during the early emerging stages. This study extends current research by investigating the relationships between types of innovation and ESE as a component of individual personality, as well as how these variables interact to contribute to the performance of early-stage startup firms. The findings present new insights concerning factors related to business success, which can inform supportive policies and programs to enhance ESE and innovation.