Proper

Abstract

This paper explores effects of the local community support for starting new businesses, the factor of external resources, and the innovation system in the firms on the business performance of startup companies. First, the findings show that both the local community support and external resources have significant impacts on the social norms and performance-based culture in the community. Second, the test results also indicate that in the innovation system of startups, discovery and exploitation are highly associated with their dynamic capabilities. Third, with regard to the total effect on the business performance of startups, discovery through the dynamic capabilities has the highest impact on the business performance of startups among independent variables in the research model. Similarly, the local community support through the social norms and performance-based culture has the second highest impact on the business performance of startups.