The role of the institutional environment on Saudi female digital entrepreneurs’ behavior

Abstract

The institutional context has gained significant attention in countries where institutional factors are related to entrepreneurs’ individual-level behavior. This study, through the lens of institutional theory, aims to examine the impact of the three-dimensional country institutional profile—including, the regulative, cognitive, and normative dimensions—on the behavior of female digital entrepreneurs in Saudi Arabia, proposing that entrepreneurial behavior is influenced by the institutional environment. This study used a quantitative research design to collect data from 662 Saudi female digital entrepreneurs through a web-based, closed-ended, structured questionnaire. The results indicate that cognitive and normative institutional environments significantly impact entrepreneurial behavior; however, the regulatory institutional environment does not play a significant role in the behavior of female digital entrepreneurs in Saudi Arabia. The results suggest that developing supportive regulations and laws might not be sufficient to influence female entrepreneurs’ behavior; normative and cognitive informal institutional environments might be critical factors in shaping this association.