Abstract: As a scarce external resource, finance has become the core factor affecting the survival and development of private entrepreneurial firms. However, due to the restrictions of ownership structure, information asymmetry and other factors, the financial demand of private entrepreneurial firms is not satisfied from the traditional financial system. Therefore, how to build a long-term financial service model to break through the dilemma of financing difficulty and high cost of private entrepreneurial firms has become the key to promote the high-quality development of private entrepreneurial firms. With the rapid development of emerging technologies such as big data and cloud computing, a new financial model characterized by low cost and low threshold, namely digital inclusive finance came into being. Digital inclusive finance has a significant impact on the operation of micro-firms and even the development of macro-economy in China. Simultaneously, some researches have verified the potential positive impact of the development of digital inclusive finance on the operation of the firms from the perspective of financing constraints, financial mismatch and equity pledge at the micro-level. However, little is known about theoretical analysis framework and empirical research support on the issue of digital inclusive finance driving the development of private entrepreneurial firms, especially the internal mechanism of the impact of digital inclusive finance on the performance of private entrepreneurial firms. In order to explore the mechanism of the impact of digital inclusive finance on private entrepreneurial firm performance, a theoretical model aiming at investigating the impact of digital inclusive finance on private entrepreneurial firm performance was constructed. Specifically, based on resource dependence theory and the relevant literature on innovation persistence and team faultlines, digital inclusive finance, innovation persistence, private entrepreneurial firm performance, and top management team faultlines were integrated into a conceptual model. That is, this paper built a model of the mediating effect of digital inclusive finance on private entrepreneurial firm performance through innovation persistence and the moderating effect of top management team faultlines on the impact of digital inclusive finance on private entrepreneurial firm performance and the effect of innovation persistence on private entrepreneurial firm performance, whose purpose is to answer the following questions: Can digital inclusive finance significantly improve private entrepreneurial firm performance? Does innovation persistence play significant and mediating role in the relationship between digital inclusive finance and private entrepreneurial firm performance? Do top management team faultlines have significant and positive effect on the positive role of digital inclusive finance on improving private entrepreneurial firm performance, and on the positive role of the innovation persistence on improving private entrepreneurial firm performance? Based on the data on Chinese start-up private firms during the period from 2011 to 2018, this paper empirically analyzed the mediating role of innovation persistence on the relationship between digital inclusive finance and private entrepreneurial firm performance, and the moderating effect of top management team faultlines. Research results show that the development of digital inclusive finance has significant and positive effect on boosting private entrepreneurial firm performance, and innovation persistence has significant and mediating effect on the relationship between them. Simultaneously, top management team task-related faultlines and bio-demographic faultlines have significant and positive moderating effect on the impact of digital inclusive finance on the performance of private entrepreneurial firms, as well as the impact of innovation persistence on the performance of private entrepreneurial firms. Specifically, the higher the level of top management team task-related faultlines and bio-demographic faultlines, the stronger the positive effect of digital inclusive finance in promoting the performance of private entrepreneurial firms and the positive effect of innovation persistence in boosting the performance of private entrepreneurial firms. Further research results show that the mediating effect of innovation persistence and the moderating effect of top management team faultlines are more obvious in manufacturing private entrepreneurial firms and smaller-sized private entrepreneurial firms. Based on the research results, in order to increase private entrepreneurial firm performance, this paper further put forward some practical suggestions from the aspects of digital inclusive finance, innovation persistence and optimization of top management team faultlines.

Key words: digital inclusive finance, innovation persistence, top management team faultlines, digital inclusive finance, mediating role; moderating role, innovation persistence, top management team faultlines, mediating role; moderating role