The Effect of Technological Entrepreneurship on the Growth of Iranian Knowledge-Based Firms in the Fields of Biotechnology, Agriculture, and Food by Emphasizing the Mediating Role of Digitalization and Innovation

Extended Abstract Background: Considering the complex and dynamic environmental conditions, all firms need to create and apply effective skills for the firm's goals to continue their activities. On the other hand, with the use of new technologies and digital platforms, firms were required to adapt their goals in this direction. One of the variables that can guide firms in the direction of improving performance and is in line with today's technology platform and digital environment is related to technological entrepreneurship because it is a leader in absorbing the value and innovative implementation of science and knowledge and can help the firm to reach directly its goals. Moreover, the use of digital technologies integrates new business ventures into business models and operations, leading to digital entrepreneurship through digital products, tools, and platforms. In this regard, digitalization can accelerate sustainable changes and respond to environmental and governance challenges while improving performance at the same time by accessing opportunities. In a complex and changing world, innovation is a key factor for creating a competitive advantage that requires support and investment because favorable innovation can increase the share of firms. For this reason, this study aimed to investigate the mediating role of digitalization and innovation in the relationship between technological entrepreneurship and the growth of knowledge-based firms active in the fields of biotechnology, agriculture, and food, which has not been noticed in previous studies. Methods: The statistical population of this research includes Iranian knowledge-based firms active in the fields of biotechnology, agriculture, and food. The number of statistical population is equal to 480 firms, and a sample size of 213 units was estimated using Cochran’s formula. Data were collected through a five-level Likert scale questionnaire, and 189 questionnaires were analyzed statistically. Several hypotheses were presented to investigate the relationships between the variables, which were analyzed using the structural equation modeling method. Finally, SPSS24 and SmartPLS3 software were used for data analysis. Results: The output of the software showed that technological entrepreneurship had a positive and significant effect on the firm's growth at a confidence level of 99%. The mediating role of digitalization in the relationship between technological entrepreneurship and firm growth was obtained at a significant level of 99%. In addition, the mediating role of innovation in the relationship between technological entrepreneurship and firm growth was confirmed at the 99% level. Conclusion: The contribution of this study from the analyses is to provide a new conceptual framework to fill the existing gap and provide practical solutions in line with the subject of the studied society. In line with the growth of knowledge-based firms active in the fields of biotechnology, agriculture, and food, this survey used digitalization and innovation variables as mediating variables considering today's complex and dynamic environment. It should be noted that this issue was not investigated in previous studies. The result of the first hypothesis of the research shows that entrepreneurial initiatives facilitate decisions in line with corporate goals. Focusing on entrepreneurship based on strategic processes that deal with long-term goals can also positively affect firm performance, leading to competitive advantage and economic prosperity of firms according to research on technological entrepreneurship capability. Therefore, this study specifically demonstrates that technological entrepreneurship is a key predictive factor for improving the growth of knowledge-based firms active in the fields of biotechnology, agriculture, and food. In line with the result of the second research hypothesis, the government can develop entrepreneurship in the agricultural sector by investing in infrastructures of agriculture and by applying incentive policies, such as removing or discounting taxes for investors. Based on this, knowledge-based firms active in the fields of biotechnology, agriculture, and food, focusing on entrepreneurship with a technological platform, can digitalize their operational, process, and production processes. The results show that an emphasis on digitalization can improve the growth of firms. The result of the third hypothesis of the research shows that knowledge-based companies active in the fields of biotechnology, agriculture, and food can focus on technological entrepreneurship to improve innovation levels in their products and processes, develop performance, and improve their market share. It should be noted that innovation and change have become important sources of competitive advantage for firms, and the desire for entrepreneurship also plays an important role in improving performance and ensuring the source of their growth. In general, this study documents that knowledge-based firms active in the fields of biotechnology, agriculture, and food can invest in technological entrepreneurship activities to positively influence their firm's growth. In the meantime, the existence of digitalization and innovation variables were identified as crucial factors that could strengthen the growth foundations of the studied firms. The results of this research can help knowledge-based firms active in the fields of biotechnology, agriculture, and food in the direction of strategic and technological decisions for firm growth and performance improvement. Based on the results of the hypotheses, this study has provided several practical suggestions, which can be implemented in the studied firms.