Digital technology and national entrepreneurship: An ecosystem perspective

Abstract

Although the importance of digital technology has been recognized in the entrepreneurship literature, we know relatively little about how and to what extent it influences a nation’s entrepreneurial activities. Drawing on the concept of entrepreneurial ecosystem, this study developed a conceptual model to explain the impact of digital technology on national entrepreneurship and the interactions between digital technology and other ecosystem elements. The hypotheses are tested by using unbalanced panel data of 101 countries from 2001 to 2018. The empirical results show that the level of digital technology is positively associated with the output of national entrepreneurial ecosystems, and this positive relationship is strengthened in nations with a supportive culture, high-quality institutions, supportive policies, accessible resources, and well-developed service industries. The findings highlight the importance of digital technology, provide fresh insights into the interdependence between elements and causal mechanisms in national entrepreneurial ecosystems.