Designing green value chain configurations for enhanced performance in start-ups: The enabling role of digital service innovation

The implications of green value chain design for business performance are a central and highly relevant issue for companies. In this context, Digital Service Innovation (DSI) emerges as a form of technological innovation that enables firms to more effectively manage and adapt their operations. This study investigates the role of DSI—whether externally acquired or internally developed—in shaping value chain activities, with particular emphasis on the moderating effect of a firm's green value chain. Grounded in the premise that competitive advantage stems from optimal value chain configurations, we employ a machine learning approach using a Random Forest regressor and SHAP analysis on a global dataset of 5847 startups across seven industry sectors. We examine the relevance of green intend and the interplay between DSI and value chain activities to identify configurations associated with higher performance outcomes. The novelty of this study lies in demonstrating how DSI strategies can be integrated into value chain analysis to enhance performance and in showing that firms with clearly articulated environmental intent tend to outperform their peers. • ML techniques reveal joint effects of DSI, motivation and value chain on start-ups. • DSI drives performance in all cases, with internal/external use shaped by industry. • Impact of environmental motivation varies by sector and value chain design. • Key value chain activities differ, with distinct configurations by industry. • Findings uncover patterns in environmental management, DSI, and start-ups.