Purpose The purpose of this study is to explore how historical imprints, dynamic capabilities, and entrepreneurial passion interact to influence explorative innovation in startups, focusing on the mediating role of product development capabilities. Design/methodology/approach This study employs a cross-sectional survey of 128 owners and managers of new businesses in the United Arab Emirates. It integrates imprinting theory, the dynamic capabilities perspective, and affect-based entrepreneurial theory to examine the impact of historical imprints on explorative innovation. Partial least squares structural equation modeling (PLS-SEM) is used to test the measurement models' validity and reliability, as well as the moderated mediation model. Findings The findings indicate that historical imprints negatively affect explorative innovation by restricting product development capabilities. Entrepreneurial passion has a complex moderating role – passion for founding mitigates the negative effects of historical imprints, while passion for inventing weakens the positive relationship between product development capabilities and explorative innovation. Research limitations/implications The study is limited by its cross-sectional nature and its focus on businesses in the United Arab Emirates, which may limit the generalizability of the findings. Future research could explore longitudinal effects and examine different cultural contexts. Originality/value This research contributes to understanding the complex relationship between historical imprints, dynamic capabilities, and entrepreneurial passion in startups. It offers valuable insights for practitioners on how to manage the constraints of historical imprints while fostering innovation, thus providing strategies to enhance innovation in entrepreneurial settings.
Dayan et al. (2026) studied this question.