Entrepreneurial Mindset, Risk Taking Behaviour and Innovations in Start-Ups: Effect of Creative Self Efficacy as Mediating in PLS-SEM
DOI:
https://doi.org/10.62794/pjer.v4i3.298Keywords:
Creative Self-Efficacy, Entrepreneurial Mindset, Innovation Performance, Risk-Taking Behaviour, Start-UpsAbstract
Innovation performance is essential for start-up sustainability because entrepreneurs must continuously adapt, experiment, and develop creative solutions under uncertain and competitive conditions. However, entrepreneurial characteristics alone may not fully explain differences in innovation outcomes because psychological capabilities may determine how entrepreneurs transform ideas into innovative actions. This study examines the influence of entrepreneurial mindset and risk-taking behaviour on innovation performance by considering the role of creative self-efficacy among start-up entrepreneurs. A quantitative cross-sectional research design was employed using data collected from 300 start-up entrepreneurs and founders in Uttar Pradesh, India. Data were gathered through a structured questionnaire and analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results indicate that creative self-efficacy has a significant positive effect on innovation performance. Entrepreneurial mindset significantly influences both creative self-efficacy and innovation performance, demonstrating its importance in developing innovative capabilities among entrepreneurs. Risk-taking behaviour significantly influences creative self-efficacy; however, its direct effect on innovation performance is not statistically significant. These findings highlight that willingness to accept uncertainty does not automatically generate innovation outcomes without supporting psychological capabilities. This study contributes to entrepreneurship literature by emphasizing the importance of integrating entrepreneurial characteristics and psychological resources in explaining start-up innovation performance. The findings also provide practical implications for entrepreneurship education, incubation programs, and start-up development initiatives by highlighting the need to strengthen both entrepreneurial thinking and creative confidence.
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