Optimizing the Digital Transformation Capability for Enhancing Economic Sustainability of Entrepreneurial Venture: The Moderating Role of Entrepreneurial Orientation

Digital transformation relates to the deployment of digital technologies to improve business practices, culture, and customer experience to meet changing market needs. Digital transformation capabilities could also influence the environmental and social performance of entrepreneurial ventures. Against this backdrop, the aim of this study is to investigate how digital transformation capability could impact environmental and social performance as well as economic sustainability of entrepreneurial ventures. This study examines if there are any moderating impacts of entrepreneurial orientation on the relationships between digital transformation capability and its consequences. Also, this study uses different control variables to determine the impact on the economic sustainability of entrepreneurial ventures. With the support of a resource-based view and literature review, a research model has been developed conceptually, which was later validated using a covariance-based structural equation modeling technique with consideration of feedback from 312 entrepreneurs from different sectors and industries. The study found that there is a significant impact of digital transformation capability on environmental performance and social performance of entrepreneurial ventures, which, in turn, influences the economic sustainability of the entrepreneurial venture. This study also highlighted that there is a significant moderating impact of entrepreneurial orientation on different performances of entrepreneurial ventures.