Dynamic Learning and Entrepreneurial Orientation: How Absorptive Capacity Shapes Start-up Performance in Emerging Economies

Abstract

Start-ups in emerging economies face unstable environments, limited institutional support, and resource scarcity, making learning agility and strategic adaptability essential for survival. This study examines how dynamic learning, reflected through absorptive capacity (ACAP), influences entrepreneurial orientation (EO) and subsequently affects firm performance (PF). Drawing on the dynamic capability view (DCV) and social learning theory, the study proposes that EO mediates the relationship between ACAP and PF, while firm age moderates the effect of ACAP on EO. Using quantitative methods and Hayes’ PROCESS Macro (Model 7), data will be collected from 100–200 start-ups operating within university-based incubators and innovation ecosystems in Indonesia. The results are expected to show that firms with higher ACAP display stronger EO, which in turn enhances performance outcomes. However, this relationship weakens as firms mature, indicating that younger firms benefit more from dynamic learning processes. Theoretically, this study extends the DCV by incorporating firm age as a boundary condition in the learning-entrepreneurship-performance nexus. Practically, it provides insights for incubators, policymakers, and entrepreneurs on how to strengthen start-up learning systems and knowledge absorption to sustain competitiveness in volatile emerging markets.