Abstract:

This study examines the relationship between entrepreneurial orientation (EO), digitalization (D), and firm growth (FG), with particular attention paid to the mediating role of digitalization. Additionally, the study compares the results obtained using covariance-based structural equation modeling (CB-SEM) and partial least squares structural equation modeling (PLS-SEM) in order to assess the consistency of findings across different SEM approaches. The study is based on data collected from 416 firms operating in the food manufacturing sector. The findings indicate that entrepreneurial orientation positively influences both digitalization and firm growth, while digitalization also positively affects firm growth. The mediation analysis confirmed that digitalization acts as a partial mediator in the relationship between entrepreneurial orientation and firm growth. Furthermore, the results obtained from CB-SEM and PLS-SEM were largely consistent, suggesting robustness and stability of the identified relationships across both analytical approaches. The study contributes to the literature by combining a substantive analysis of entrepreneurial and digital transformation processes with a methodological comparison of two major SEM approaches.