Entrepreneurial intention: The role of the perceived benefits of digital technology

Abstract

Background: Existing research recognises that entrepreneurship orientation (EO) is essential for success. However, the mediating role of EO in driving entrepreneurial intention (EI) amongst young adults, especially in the context of the digital revolution, remains largely underexplored. Aim: Accordingly, this study aimed to investigate the mediated effect of risk taking, innovativeness, and proactiveness on EI in an emerging economy. Setting: The sample for this study was drawn from the young adult population in South Africa who understands the concept of entrepreneurship. Method: In the study, a quantitative method to collect the data is used, while structural equation modelling is used to test the extended theory of planned behaviour (TPB). Results: Findings indicate that risk taking mediates the effects of attitude, entrepreneurial capability, and the perceived benefits of digital technology on EI. The results did not support the mediating function of proactiveness and innovativeness. In fact, this result challenges the TPB’s simplistic structure and reveals the prominent role of risk taking in determining TPB predictors. Conclusion: Given the significance of risk taking, governments and entrepreneurship centres are urged to promote risk taking in all their entrepreneurship development programmes. Contribution: Considering the significance of the global digital transformation, this study extends the TPB by incorporating the perceived benefits of digital technology among the predictors of entrepreneurial intent. It also emphasises the role of risk taking in mediating the effects of these predictors on the entrepreneurial intention of young adults in South Africa.