A contribution towards developing a sustainable model for enhancing entrepreneurial performance: identifying the mediating role of innovative work behaviour

Purpose Small and medium-sized enterprises (SMEs) have contributed substantially to the global entrepreneurial environment and economic growth, particularly within emerging economies. However, the success rate of these enterprises is relatively low in most developing countries, particularly India. Therefore, this study aims to contribute towards creating a sustainable model for enhancing entrepreneurial performance by examining the impact of entrepreneur digital literacy, entrepreneurial attitude and innovative work behaviour on their sustainable performance. It also explores the role of innovative work behaviour as a mediator in the relationship between entrepreneurial digital literacy, attitude and SMEs’ sustainable performance. Design/methodology/approach Data was collected from a sample of 329 entrepreneurs registered with the Department for Promotion of Industry and Internal Trade portal in India using snowball random sampling and was analysed via the structural equation modelling technique. Findings The findings reveal that entrepreneurial digital literacy and attitude play a robust and critical role in supporting innovation and SMEs’ long-term success, respectively. Entrepreneurial digital literacy equips individuals with the skills to navigate digital tools effectively, fostering innovation within SMEs and enabling them to adapt to evolving market demands. Similarly, a positive entrepreneurial attitude, characterised by a proactive and risk-taking mindset, is essential for driving SMEs’ long-term success by facilitating growth and adaptation in competitive business environments. Moreover, the relationship between entrepreneurial digital literacy, attitude and sustainable performance was found to be partially mediated by innovative work behaviour. Innovative work behaviour, including creativity, proactivity and risk-taking, is a bridge, translating digital literacy and entrepreneurial mindset into tangible outcomes that contribute to sustainable entrepreneurial performance and resilience in dynamic market conditions. Originality/value The described research work offers a valuable contribution to the field by integrating digital literacy and entrepreneurial attitude within the context of entrepreneurship. Exploring how innovative work behaviour mediates the relationship between digital literacy, entrepreneurial attitude and sustainable entrepreneurial performance contributes to a deeper understanding of the mechanisms driving success in today’s digital economy.