The Comparative Impact of Conventional and Digital Innovations on Driving Corporate Sustainability: The Case of Venture Firms in South Korea

While previous studies have focused on either conventional or digital innovations individually, few have empirically compared the relative impact of these two types of innovation on firm sustainability. Furthermore, few earlier studies have applied a dynamic capabilities perspective and a technology acceptance model (TAM) to understand how innovation strategies affect long-term competitiveness, particularly when targeting venture firms. In this vein, the aim of this study is to identify the factors that play an important role in the sustainability of venture firms and, in particular, to demonstrate which factor has a more positive effect between conventional innovation and digital innovation, which has recently been considered to be crucial. In this study, ‘corporate sustainability’ refers to the ability of venture firms to secure long-term growth potential and operational and resource efficiency, and the ability to maintain a continuous competitive advantage, even in a rapidly changing market environment. This is especially related to the ability of firms to adapt to change, maintain performance, and create new opportunities through innovation using digital technology. Based on the secondary data jointly surveyed by the ‘Korean Ministry of Small- and Medium-sized Enterprises and Startups’ and the ‘Korea Venture Business Association (KOVA)’, a regression analysis of 3000 data collected in 2022 was conducted. According to the result, both conventional and digital innovations are vital factors, but we found that digital-business-model innovation had a stronger impact for venture firm sustainability. This result provides valuable implications for improving the competitiveness and maintaining the sustainability of venture firms.