Business Model Innovation and Performance of Startups: The Moderating Role of External Legitimacy

Business model innovation (BMI) is a key performance driver for startups. Nonetheless, the reality that new firms with business models still face survival pressures. New institutional theory shows legitimacy factors will affect level of ventures. Legitimacy an important subject in field institution and organization, which refers to extent individual or organization’s behavior accepted by public reflects influence external forces on organization. Consequently, this study collected data from entrepreneurs Eastern China conducted regression analysis, revealed novelty-based efficiency-based positively affects Moreover, found different dimensions have effects relationship between Regulative normative negatively regulate In contrast, regulates The also cognitive summary, highlights importance considering findings suggest crucial factor affecting startups’ ability improve their through innovation.