Design Thinking Orientation and Dynamic Capabilities among Startups: From a Developing Country Perspective

Startups could benefit immensely from adopting Design Thinking (DT) to survive and scale-up. DT may act as a precursor to Dynamic Capabilities (DC) to achieve innovation, helping startups stay competitive. However, the DT concept and literature have drawbacks. Thus, this study develops a design thinking orientation (DTO) comprising customer, collaborative creative, and experimental focus. A mixed-method approach is adopted in this study to validate the DTO and examine its effects on DC (measured by sensing, seizing and transforming capabilities) and the innovation of startups in Malaysia. Findings suggest that startups embodying DTO positively impacts innovation directly and indirectly through DC.