Digital Twins as Enablers of Entrepreneurial Operations Management: A Mixed-Methods Study

Abstract

This study aimed to investigate how digital twin capabilities—including digital sensing, real-time operational visibility, predictive analytics effectiveness, and decision-support quality—affect entrepreneurial operations performance. A mixed-methods design was employed, beginning with an exploratory qualitative phase followed by quantitative validation. Semi-structured interviews with founders, operations managers, and digital transformation specialists were analyzed using thematic analysis to identify capability dimensions and operational mechanisms. Insights from the qualitative phase informed the development of a structured survey instrument administered to entrepreneurial firms across technology-driven industries. Quantitative data were evaluated through measurement modeling, reliability and validity testing, and structural equation modeling to determine the magnitude and significance of relationships among constructs. Structural equation modeling demonstrated that all four digital twin capabilities had significant positive effects on entrepreneurial operations performance. Decision-support quality exhibited the strongest effect (β = 0.33, p < 0.001), followed by predictive analytics effectiveness (β = 0.29, p < 0.001), digital sensing capability (β = 0.21, p < 0.001), and real-time operational visibility (β = 0.17, p = 0.003). Mediation analyses indicated that predictive analytics and decision-support quality significantly mediated the effects of sensing and visibility on performance, with indirect effects ranging from 0.09 to 0.14, all within significant bootstrapped confidence intervals. These results confirm that analytical and cognitive augmentation mechanisms play a central role in translating digital twin capabilities into operational improvements. Digital twins meaningfully enhance entrepreneurial operations by strengthening real-time sensing, visibility, predictive forecasting, and decision-support intelligence. Their integrated influence demonstrates that digital twins serve not only as technological tools but also as strategic enablers that improve performance and resilience in resource-constrained entrepreneurial environments.