Introduction: While the link between entrepreneurial orientation (EO) and firm performance is established, its specific impact on new ventures in emerging economies requires further investigation. A deeper understanding of this relationship is crucial for researchers and managers seeking to enhance firm performance. This study addresses this gap by examining how entrepreneurial orientation influences the performance of new digital platform ventures in Iran. It proposes a model that explores the mediating role of opportunity recognition in this relationship and investigates the moderating role of transformational leadership in enhancing the EO-opportunity recognition link.

Methodology: The statistical population consisted of digital platform businesses based in Tehran, Iran. Using a simple random sampling method, data were collected through standardized questionnaires. A total of 127 (a hundred and twenty seven) valid questionnaires were obtained from digital planform businesses and used for the final analysis. Structural equation modeling (SEM) with Smart PLS software was employed to test the hypotheses and examine the fit of the conceptual model. This method was selected for its suitability in analyzing complex relationships between latent and observed variables simultaneously.

Findings: The findings indicated that entrepreneurial orientation has a significant positive direct effect on both opportunity recognition and new venture performance. Transformational leadership also showed a positive and significant direct influence on opportunity recognition. A key finding was the confirmation of opportunity recognition's mediating role in the relationship between EO and performance. This suggests that part of EO's impact on performance is transmitted through enhanced opportunity recognition capabilities. However, the hypothesized moderating role of transformational leadership on the relationship between entrepreneurial orientation and opportunity recognition was not supported by the data..

Conclusion/ Implications: This study confirms that in the challenging environment of Iranian new ventures, entrepreneurial orientation plays a vital role in success. Its impact is exerted both directly and indirectly through strengthening managers' market opportunity recognition capabilities. While transformational leadership independently aids in recognizing opportunities, it does not moderate the strength of EO's influence on this capability. This finding may stem from the structural and strategic nature of entrepreneurial orientation, which operates independently of leadership style. For managers and entrepreneurs, the key implication is the necessity of institutionalizing an entrepreneurial strategic posture within their ventures. This posture should focus on systematically identifying market inefficiencies and customer needs. By transforming this recognition into effective entrepreneurial behavior—through introducing new products and services and achieving successful market entry—venture performance can be enhanced even in challenging environments.