Empowering Startup Company: Entrepreneurial Capacity as a Key Factor

Nur Hayati, Evan Jaelani, Duma Soswati Ritonga

Abstract


Objectives: The startup sector continues to evolve amidst rising competition. Entrepreneurial leadership and artificial intelligence (AI) literacy are recognized as key enablers for sustaining and enhancing competitiveness. This study aims to explore how these two elements, both individually and in combination, influence the competitiveness of startup firms, with entrepreneurial capacity considered as a potential mediating factor.
Methodology: The study employed a structural equation modeling approach using Partial Least Squares (PLS-SEM), drawing data from employees of digital startups based in West Java. Reliability and validity of the measurement model were confirmed through comprehensive statistical testing. The analysis assessed both direct and indirect relationships among variables.
Result : The findings demonstrate that AI literacy exerts a strong and statistically significant positive influence on entrepreneurial capacity, as well as directly on startup competitiveness. Entrepreneurial leadership also shows a meaningful positive contribution to both entrepreneurial capacity and startup competitiveness. Furthermore, entrepreneurial capacity itself plays a crucial role in strengthening a startup’s market position and adaptability. The analysis confirms that entrepreneurial capacity serves as a significant mediating variable in the relationship between both AI literacy and entrepreneurial leadership with startup competitiveness. The overall model exhibits a high level of explanatory power, suggesting that the proposed variables collectively account for the vast majority of variance in startup competitiveness.
Conclusion: The results underscore the importance of fostering AI literacy and entrepreneurial leadership within startup environments, as their impact on competitiveness is not only direct but also reinforced through enhanced entrepreneurial capacity. These findings provide practical guidance for startup leaders seeking to develop strategic capabilities and sustain growth in increasingly dynamic and tech-driven markets.


Keywords


Artificial Intelligence Literacy; Entrepreneurial Capacity; Entrepreunerial Leadership; Startup Competitiveness; Startup Company

Full Text:

PDF

References


Adigwe, C. S., Olaniyi, O. O., Olabanji, S. O., Okunleye, O. J., Mayeke, N. R., & Ajayi, S. A. (2024). Forecasting the Future: The Interplay of Artificial Intelligence, Innovation, and Competitiveness and its Effect on the Global Economy. Asian Journal of Economics, Business and Accounting, 24(4), 126–146. https://doi.org/10.9734/ajeba/2024/v24i41269

Alzaghal, Q. K., Salah, O. H., & Ayyash, M. M. (2024). Leveraging Artificial Intelligence for Smes’ Sustainable Competitive Advantage: the Moderating Role of Managers Digital Literacy. Journal of Theoretical and Applied Information Technology, 102(21), 7731–7748.

Arenal, A., Armuña, C., Feijoo, C., Ramos, S., Xu, Z., & Moreno, A. (2020). Innovation ecosystems theory revisited: The case of artificial intelligence in China. Telecommunications Policy, 44(6). https://doi.org/10.1016/j.telpol.2020.101960

Asio, J. M. R. (2024). MALAYSIAN ONLINE JOURNAL OF EDUCATIONAL SCIENCES AI LITERACY , SELF-EFFICACY , AND SELF-COMPETENCE AMONG COLLEGE STUDENTS : VARIANCES AND INTERRELATIONSHIPS AMONG VARIABLES. 12(July), 44–60.

Bagheri, A., & Harrison, C. (2020). Entrepreneurial leadership measurement: a multi-dimensional construct. Journal of Small Business and Enterprise Development, 27(4), 659–679. https://doi.org/10.1108/JSBED-01-2019-0027

Bagheri, A., & Krauss, S. E. (2013). Entrepreneurial leadership self-efficacy : A Focus on Malaysian student entrepreneurial leaders. 66(1), 690–708.

Bessen, J. (2019). Automation and jobs: when technology boosts employment. Economic Policy, 34(100), 589–626. https://doi.org/10.1093/EPOLIC/EIAA001

Brown, R., & Mason, C. (2017). Looking inside the spiky bits: a critical review and conceptualisation of entrepreneurial ecosystems. Small Business Economics, 49(1), 11–30. https://doi.org/10.1007/s11187-017-9865-7

Chatterjee, S., & Bhattacharjee, K. K. (2020). Adoption of artificial intelligence in higher education: a quantitative analysis using structural equation modelling. Education and Information Technologies, 25(5), 3443–3463. https://doi.org/10.1007/s10639-020-10159-7

Chauhan, P. S. (n.d.). Social Entrepreneurship Research : A Review and Future Research Agenda Short Title Social Entrepreneurship Research. Iim.

Chen, W., & Zhang, J. H. (2023). Does shared leadership always work? A state-of-the-art review and future prospects. Journal of Work-Applied Management, 15(1), 51–66. https://doi.org/10.1108/JWAM-09-2022-0063

Clarysse, B., Tartari, V., & Salter, A. (2011). The impact of entrepreneurial capacity, experience and organizational support on academic entrepreneurship. Research Policy, 40(8), 1084–1093. https://doi.org/10.1016/j.respol.2011.05.010

Davalas, A., Charalabidis, Y., & Fenekoy, P. (2022). Startup Valuation with Artificial Intelligence: A SWOT Analysis. European Journal of Economics, 2(2), 13–20. https://doi.org/10.33422/eje.v2i2.154

Davenport, T. H., & Ronanki, R. (2018). Intelligence for the real world. Harvard Business Review, 96(1), 108–116.

Díaz-Casero, J. C., Hernández-Mogollón, R., & Roldán, J. L. (2012). A structural model of the antecedents to entrepreneurial capacity. International Small Business Journal, 30(8), 850–872. https://doi.org/10.1177/0266242610385263

Dvalidze, N., & Markopoulos, E. (2020). Understanding the Nature of Entrepreneurial Leadership in the Startups Across the Stages of the Startup Lifecycle. Advances in Intelligent Systems and Computing, 961, 281–292. https://doi.org/10.1007/978-3-030-20154-8_26

Eisenmann, T. R. (2020). Determinants of Early-Stage Startup Performance: Survey Results. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3725023

Ersarı, G., & Naktiyok, A. (2022). The Role of Competitive Strategies in the Effect of Entrepreneurial Mindset and the Entrepreneurial Leadership on Business Performance. Istanbul Business Research, 0(0), 0–0. https://doi.org/10.26650/ibr.2022.51.834294

Faghih, N. (2019). An introduction to: globalization and development—entrepreneurship, innovation, business and policy insights from Asia and Africa. In Contributions to Management Science. https://doi.org/10.1007/978-3-030-11766-5_1

George, A. S., George, A. S. H., & Martin, A. S. G. (2023). A review of ChatGPT AI’s impact on several business sectors. Partners Universal International Innovation Journal, 1(1), 9–23. https://doi.org/10.5281/zenodo.7644359

Goh, T. S., Henry, Erika, & Albert. (2022). MIX : Jurnal Ilmiah Manajemen Jurnal Ilmiah Manajemen. MIX: Jurnal Ilmiah Manajemen, 18(1), 31–43.

Helen Febrina, & M.L. Denny Tewu. (2023). Resiko Sistem Manajemen Kinerja yang Buruk Terhadap Perusahaan Start Up di Indonesia. Jurnal Manajemen Risiko, 3(2), 131–146. https://doi.org/10.33541/mr.v3i2.5051

Hindle, K. (2007). Formalizing The Concept of Entrepreneurial Capacity. ICSB 2007 : At the Crossroads of East and West, New Opportunities for Entrepreneurship and Small Business : Proceedings of the ICSB World Conference 2007 : 13th-15th June 2007, Turku, Finland, 1959, 1–20.

Jagdale, H. B. (2024). Sustainability in startups/small and medium-sized enterprises: The influential role of entrepreneurial leadership and innovative behavior. Indian Journal of Commerce & Management Studies, XV(2), 18–31. https://doi.org/10.18843/ijcms/v15i2/03

Jiang, Y., Li, X., Luo, H., Yin, S., & Kaynak, O. (2022). Quo vadis artificial intelligence? Discover Artificial Intelligence, 2(1). https://doi.org/10.1007/s44163-022-00022-8

Karina, D., Alfiyatus Sa’diyah, S., Nabilah, H., & Panorama, M. (2021). Pengaruh Perusahaan Startup Terhadap Pertumbuhan Ekonomi Indonesia Selama Pandemi Covid-19. Berajah Journal, 2(1), 156–166. https://doi.org/10.47353/bj.v2i1.69

Kim, B., Kim, H., & Jeon, Y. (2018). Critical success factors of a design startup business. Sustainability (Switzerland), 10(9), 1–15. https://doi.org/10.3390/su10092981

Krivorotov, V., Kalina, A., Tretyakov, V., Yerypalov, S., & Oykher, A. (2020). Assessment and improvement of competitiveness of industrial complex. Competitiveness Review, 30(5), 611–633. https://doi.org/10.1108/CR-01-2019-0011

Le Trinh, T. (2019). Factors affecting startup performance of small and medium-sized enterprises in Danang city. Entrepreneurial Business and Economics Review, 7(3), 187–203. https://doi.org/10.15678/EBER.2019.070310

Lee, B., Kim, B., & Ivan, U. V. (2024). Enhancing the Competitiveness of AI Technology-Based Startups in the Digital Era. Administrative Sciences, 14(1). https://doi.org/10.3390/admsci14010006

Locke, E. A., & Robert Baum, J. (2014). Entrepreneurial motivation. The Psychology of Entrepreneurship, 93–112. https://doi.org/10.2307/j.ctvh8r2zz.8

Manajemen, J., & Ekonomi, F. (2011). LEADERSHIP SEBAGAI PRIMARY FORCES DALAM MENINGKATKAN DAYA SAING PERGURUAN TINGGI PENDAHULUAN Latar Belakang. Binus Business Review, 2(1), 14–30.

Megawaty, Hendriadi, & Negara Salam, K. (2022). Point of View Research Management The Impact of Entrepreneurial Leadership on the Performance of Small and Medium Enterprises Enterprises. Point of View Research Management, 3(4), 388–397. https://journal.accountingpointofview.id/index.php/povrema

Mishra, S., Ewing, M. T., & Cooper, H. B. (2022). Artificial intelligence focus and firm performance. Journal of the Academy of Marketing Science, 50(6), 1176–1197. https://doi.org/10.1007/s11747-022-00876-5

Neumann, O., Guirguis, K., & Steiner, R. (2024). Exploring artificial intelligence adoption in public organizations: a comparative case study. Public Management Review, 26(1), 114–141. https://doi.org/10.1080/14719037.2022.2048685

Ng, D. T. K., Wu, W., Leung, J. K. L., Chiu, T. K. F., & Chu, S. K. W. (2024). Design and validation of the AI literacy questionnaire: The affective, behavioural, cognitive and ethical approach. British Journal of Educational Technology, 55(3), 1082–1104. https://doi.org/10.1111/bjet.13411

Oloruntosin Tolulope Joel, & Vincent Ugochukwu Oguanobi. (2024). Entrepreneurial leadership in startups and SMEs: Critical lessons from building and sustaining growth. International Journal of Management & Entrepreneurship Research, 6(5), 1441–1456. https://doi.org/10.51594/ijmer.v6i5.1093

Pinski, M., Hofmann, T., & Benlian, A. (2024). AI Literacy for the top management: An upper echelons perspective on corporate AI orientation and implementation ability. Electronic Markets, 34(1), 1–23. https://doi.org/10.1007/s12525-024-00707-1

Pukkinen, T., Hytti, U., Heinonen, J., & Stenholm, P. (2024). Curricular and Extracurricular Entrepreneurial Activities Supporting Entrepreneurial Self-Efficacy and Desirability of Rural Youth. Entrepreneurship Education and Pedagogy, 7(3), 315–346. https://doi.org/10.1177/25151274231190806

Purnama, Eka, W. C. (2023). MIX : Jurnal Ilmiah Manajemen. MIX, 13(1), 30–48.

Putri Supriadi, S. R. R., Haedi, S. U., & Chusni, M. M. (2022). Inovasi pembelajaran berbasis teknologi Artificial Intelligence dalam Pendidikan di era industry 4.0 dan society 5.0. Jurnal Penelitian Sains Dan Pendidikan (JPSP), 2(2), 192–198. https://doi.org/10.23971/jpsp.v2i2.4036

Satyanarayana, K., Chandrashekar, D., & Mungila Hillemane, B. S. (2021). An Assessment of Competitiveness of Technology-Based Startups in India. International Journal of Global Business and Competitiveness, 16(1), 28–38. https://doi.org/10.1007/s42943-021-00023-x

Smith, B. G. (2016). Situated Ideals in Strategic Social Media : Applying Grounded Practical Theory Situated Ideals in Strategic Social Media : Applying Grounded Practical Theory in a Case of Successful Social Media Management. International Journal of Strategic Communication, March. https://doi.org/10.1080/1553118X.2015.1021958

Steyn, R. A. (2020). Changing thoughts towards digital literacy interventions for South African entrepreneurs. Reading and Writing (South Africa), 9(1), 1–9. https://doi.org/10.4102/RW.V9I1.172

Tidd, J., & Bessant, J. (2018). Innovation Management Challenges: From Fads To Fundamentals. International Journal of Innovation Management, 22(5). https://doi.org/10.1142/S1363919618400078

Tóth-Pajor, Á., Bedő, Z., & Csapi, V. (2023). Digitalization in entrepreneurship education and its effect on entrepreneurial capacity building. Cogent Business and Management, 10(2). https://doi.org/10.1080/23311975.2023.2210891

Towers, N., Santoso, A. S., Sulkowski, N., & Jameson, J. (2020). Entrepreneurial capacity-building in HEIs for embedding entrepreneurship and enterprise creation – a tripartite approach. International Journal of Retail and Distribution Management, 48(8), 881–899. https://doi.org/10.1108/IJRDM-06-2019-0185

Vargas, M. I. R. (2015). Determinant Factors for Small Business to Achieve Innovation, High Performance and Competitiveness: Organizational Learning and Leadership Style. Procedia - Social and Behavioral Sciences, 169(August 2014), 43–52. https://doi.org/10.1016/j.sbspro.2015.01.284

Wang, Y., Di, Y., Ye, J., & Wei, W. (2021). Study on the public psychological states and its related factors during the outbreak of coronavirus disease 2019 (COVID-19) in some regions of China. Psychology, Health and Medicine, 26(1), 13–22. https://doi.org/10.1080/13548506.2020.1746817

Wardana, L. W., Ahmad, Indrawati, A., Maula, F. I., Mahendra, A. M., Fatihin, M. K., Rahma, A., Nafisa, A. F., Putri, A. A., & Narmaditya, B. S. (2023). Do digital literacy and business sustainability matter for creative economy? The role of entrepreneurial attitude. Heliyon, 9(1), e12763. https://doi.org/10.1016/j.heliyon.2022.e12763

Weber, M., Beutter, M., Weking, J., Böhm, M., & Krcmar, H. (2022). AI Startup Business Models: Key Characteristics and Directions for Entrepreneurship Research. Business and Information Systems Engineering, 64(1), 91–109. https://doi.org/10.1007/s12599-021-00732-w

Zaech, S., & Baldegger, U. (2017). Leadership in start-ups. International Small Business Journal: Researching Entrepreneurship, 35(2), 157–177. https://doi.org/10.1177/0266242616676883

Zhang, Y., Kim, E., & Xing, Z. (2021). Image congruence between sports event and host city and its impact on attitude and behavior intention. International Journal of Sports Marketing and Sponsorship, 22(1), 67–86. https://doi.org/10.1108/IJSMS-03-2020-0040




DOI: http://dx.doi.org/10.22441/10.22441/jurnal_mix.2025.v15i2.005

Refbacks

  • There are currently no refbacks.


MIX: Jurnal Ilmiah Manajemen
Journal URL: http://publikasi.mercubuana.ac.id/index.php/Jurnal_Mix
Journal DOI: 10.22441/jurnal_mix
P-ISSN: 2088-1231
E-ISSN: 2460-5328

Editor's Address:

Magister Management Department, Universitas Mercu Buana.
Tedja Buana Building 4th Floor.
Jl. Menteng Raya No. 29, Jakarta 10340.

The Journal is Indexed and Abstracting by:

Web Analytics Made Easy - StatCounter
View My Stats