The Effect of Value Creation on Startups Performance in the Digital Environment: Evidence from Chinese Digital Startups

The use of digital technology has enabled consumers to play an essential role in the success startups. Priem et al. proposed a demand-value creation-performance framework, which argues that firms can create value for consumer by exploring demand, and this type value-creation activity help gain better performance. However, empirical evidence supporting framework remains scarce. To address challenge, study empirically tests al.’s context entrepreneurship. A unique on-site survey dataset 323 startups environment was employed explore how demand drives creation activities results show demands, terms heterogeneity, uncertainty, interactivity, are positively related creation, as reflected opportunity recognition innovation. Furthermore, both innovation performance These findings support demand-side perspective providing its key arguments from entrepreneurial view extend contextualizing it increasingly environment.