Impact of Entrepreneurial Mindset on Startup Success: The Mediating Role of Innovation Capability. Evidence from Early-Stage Entrepreneurs in Pakistan

Abstract Book of the 12th International Conference on Business, Management and Economics

Year: 2026

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Impact of Entrepreneurial Mindset on Startup Success: The Mediating Role of Innovation Capability. Evidence from Early-Stage Entrepreneurs in Pakistan

Maria Khalid, Inayat Ul Haq, Muhammad Umar

ABSTRACT:

This study explores how entrepreneurial mindset influences startup success, with particular emphasis on the role of innovation capability as a mediating mechanism in an emerging economy context. Drawing on capability-based perspectives, the research examines how entrepreneurial thinking is translated into tangible performance outcomes. Data were collected from startup founders and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The analysis indicates that entrepreneurial mindset is positively associated with startup success and also plays an important role in strengthening innovation capability. Innovation capability, in turn, contributes significantly to startup success and partially mediates the relationship between entrepreneurial mindset and performance. These results suggest that entrepreneurial mindset, on its own, may not be sufficient to ensure startup success unless it is supported by the development of concrete innovation capabilities. In addition to explanatory analysis, the study evaluates out-of-sample predictive performance using PLS Predict, revealing a reasonable level of predictive capability. Overall, the findings provide practical insight into how entrepreneurial cognition can be transformed into actionable capabilities that support startup success in resource-constrained environments.

Keywords: Entrepreneurial Mindset; Entrepreneurial Performance; Emerging Economy; Innovation Capability; Startup Success