Revolutionizing startup innovation: harnessing the transformative power of the gig economy

Purpose This study examines how gig economy participation drives startup innovation, especially in resource-constrained settings. Design/methodology/approach Drawing on job characteristics theory (JCT), resource-based view (RBV) and upper echelons theory (UET), this study integrates multi-level perspectives to explain how gig economy participation fosters startup innovation. Empirical insights are derived from data on 5,727 entrepreneurs from the Global Entrepreneurship Monitor (GEM). Findings Results show that gig economy participation significantly enhances innovation, particularly in emerging economies. These insights guide entrepreneurs and policymakers in leveraging the gig economy to drive innovation. Research limitations/implications Our findings confirm a significant positive relationship between entrepreneurial participation in the gig economy and startup innovation performance. This not only supports but extends prior work by conceptualizing the gig economy as a strategic resource within the resource-based view (RBV) of the firm. In doing so, the study contributes to a paradigm shift in understanding how startups mobilize and exploit external resources in digitally mediated environments. By redefining gig work as an innovation-enabling input rather than a labor cost alternative, this research advances theoretical conversations around entrepreneurial resource orchestration in the digital era. Practical implications For practitioners, this study underscores the strategic value of engaging with the gig economy to enhance innovation. Entrepreneurs and startup leaders are encouraged to integrate gig-based labor not only for operational flexibility but also as a source of specialized skills and rapid iteration. Importantly, psychological traits such as entrepreneurial self-efficacy must be managed to ensure optimal use of external resources. Furthermore, firms should consider aligning gig work structures with the principles of job characteristics theory (JCT), emphasizing autonomy, task identity and skill variety. Doing so can improve performance, foster creativity and enhance both participant development and organizational innovation outcomes. Social implications For policymakers and regulatory bodies, our findings highlight the gig economy’s potential to strengthen entrepreneurial ecosystems, particularly in underdeveloped and emerging economies where formal resource channels are limited. A supportive and inclusive gig economy infrastructure – guided by oversight from government and industry associations – can improve worker satisfaction, create meaningful employment opportunities, and promote inclusive national development. Effective policy must therefore strike a balance between enabling innovation and safeguarding fair labor standards, ensuring that gig platforms contribute not only to entrepreneurial performance but also to social equity and economic resilience. Originality/value The study clarifies how individual and institutional factors shape the gig–innovation link and provides strategic recommendations to maximize gig economy benefits, particularly across emerging markets, thus offering actionable insights for entrepreneurs, policymakers and platform designers.