Digital Entrepreneurship in SMEs during Crisis: The Role of Entrepreneurial Orientation and Opportunity Evaluation
DOI:
https://doi.org/10.51153/mf.v20.i2.707Keywords:
Entrepreneurship, digital entreprenrushipAbstract
The primary goal of this study is to examine the association between entrepreneurship and digital entrepreneurship, while exploring the moderating roles of gain assessment, loss assessment, and perceived feasibility. Using the framework of Entrepreneurial Event Theory as a base, this study aims to explore how cognitive assessments affect the transition from entrepreneurial intent to action in a digital startup context within an emerging economy. A standardized questionnaire was administered to collect data from 200 digital entrepreneurs and startup professionals in Karachi, Pakistan. We tested the hypothesized relationships using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show the positive and significant impact of entrepreneurial orientation on digital entrepreneurship. Furthermore, gain assessment and perceived feasibility significantly moderate this relationship, such that the association between entrepreneurial traits and intentions is stronger when people perceive high incoming rewards and greater practical feasibility. In contrast, loss assessment does not significantly moderate the association between entrepreneurship orientation and digital entrepreneurship. This serves to prepare the stage for subsequent studies investigating the relationships between the online commerce entrepreneurial mindset and emotions, and the practical implications for policy, incubation, and capacity building within developing countries' digital startup ecosystems.
References
Ahsan, M. (2022). Strategic decisions and digital entrepreneurship adoption during COVID-19: Evidence from SMEs in emerging economies. Journal of Small Business and Enterprise Development, 29(6), 1010–1032.
Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211.
Al-Omoush, K. S., Simón-Moya, V., & Sendra-García, J. (2022). The impact of social capital and collaborative knowledge creation on digital entrepreneurship. Journal of Business Research, 140, 135–146.
Bryman, A. (2022). Social research methods (6th ed.). Oxford University Press.
Covin, J. G., & Miller, D. (2022). International entrepreneurial orientation research: Reflections and future directions. Entrepreneurship Theory and Practice, 46(1), 3–33.
Covin, J. G., & Slevin, D. P. (1989). Strategic management of small firms in hostile and benign environments. Strategic Management Journal, 10(1), 75–87.
Covin, J. G., & Wales, W. J. (2021). Crafting high-impact entrepreneurial orientation research. Entrepreneurship Theory and Practice, 45(1), 3–27.
Creswell, J. W., & Creswell, J. D. (2023). Research design: Qualitative, quantitative, and mixed methods approaches (6th ed.). Sage Publications.
Faul, F., Erdfelder, E., Buchner, A., & Lang, A. G. (2009). Statistical power analyses using G*Power 3.1. Behavior Research Methods, 41(4), 1149–1160.
Field, A. (2022). Discovering statistics using IBM SPSS statistics (6th ed.). Sage Publications.
Foss, N. J., & Klein, P. G. (2021). Entrepreneurial judgment and opportunity evaluation. Journal of Business Venturing, 36(4), 106121.
Giones, F., & Brem, A. (2020). Digital entrepreneurship: A research agenda. Technological Forecasting and Social Change, 152, 119–130.
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A primer on partial least squares structural equation modeling (PLS-SEM) (3rd ed.). Sage Publications.
IBM. (2023). Cost of a data breach report 2023. IBM Security.
Joshi, A., Kale, S., Chandel, S., & Pal, D. (2021). Likert scale: Explored and explained. British Journal of Applied Science & Technology, 7(4), 396–403.
Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2).
Kollmann, T., Stöckmann, C., & Kensbock, J. (2023). Entrepreneurial orientation and digital innovation: The moderating role of digital capability. Journal of Business Venturing Insights, 19, 1011–1032.
Kraus, S., Breier, M., & Dasí-Rodríguez, S. (2022). The art of crafting a systematic literature review in entrepreneurship research. International Entrepreneurship and Management Journal, 18(3), 1023–1042.
Kraus, S., Breier, M., Lim, W. M., Dabić, M., Kumar, S., Kanbach, D., ... & Ferreira, J. J. (2022). Digital transformation in business and management research: An overview of the current status quo. International Journal of Information Management, 63, 1024.
Kraus, S., Palmer, C., Kailer, N., Kallinger, F. L., & Spitzer, J. (2019). Digital entrepreneurship: A research agenda on new business models for the twenty-first century. International Journal of Entrepreneurial Behavior & Research, 25(2), 353–375.
Li, L., Su, F., Zhang, W., & Mao, J. Y. (2022). Digital transformation by SME entrepreneurs: A capability perspective. Information & Management, 59(3), 103–118.
Liñán, F., & Jaén, I. (2020). The COVID-19 pandemic and entrepreneurship: Some reflections. International Journal of Emerging Markets, 16(5), 1009–1024.
Martin, K. D., Borah, A., & Palmatier, R. W. (2023). Data privacy: Effects on customer trust and firm performance. Journal of Marketing, 87(1), 36–58.
Meoli, A., & Vismara, S. (2024). Entrepreneurial intentions and action under uncertainty. Journal of Business Venturing, 39(1), 106145.
Nambisan, S. (2017). Digital entrepreneurship: Toward a digital technology perspective of entrepreneurship. Entrepreneurship Theory and Practice, 41(6), 1029–105.
Nambisan, S., Wright, M., & Feldman, M. (2023). The digital transformation of entrepreneurship: Progress, challenges and key themes. Research Policy, 52(1), 1046–1068.
Neneh, B. N. (2023). Fear of failure and entrepreneurial action: The moderating role of risk perception. Small Business Economics, 60(4), 1501–1518.
Newman, A., Obschonka, M., Schwarz, S., Cohen, M., & Nielsen, I. (2021). Entrepreneurial self-efficacy: A systematic review of the literature. International Journal of Management Reviews, 23(1), 72–100.
OECD. (2023). SME and entrepreneurship outlook 2023. OECD Publishing.
Organisation for Economic Co-operation and Development. (2022). Digital security risk management in SMEs. OECD Publishing.
Ratten, V. (2022). Digital entrepreneurship and innovation management in times of crisis. Journal of Small Business Management, 60(5), 1030–1048.
Sahut, J. M., Iandoli, L., & Teulon, F. (2021). The age of digital entrepreneurship. Small Business Economics, 56(3), 1159–1169.
Sarasvathy, S. D. (2001). Causation and effectuation: Toward a theoretical shift from economic inevitability to entrepreneurial contingency. Academy of Management Review, 26(2), 243–263.
Saunders, M., Lewis, P., & Thornhill, A. (2023). Research methods for business students (9th ed.). Pearson.
Shapero, A., & Sokol, L. (1982). The social dimensions of entrepreneurship. In C. A. Kent, D. L. Sexton, & K. H. Vesper (Eds.), The encyclopedia of entrepreneurship (pp. 72–90). Prentice-Hall.
Shepherd, D. A., Williams, T. A., & Patzelt, H. (2020). Thinking about entrepreneurial decision-making. Journal of Business Venturing, 35(2), 105–119.
Shirokova, G., Osiyevskyy, O., & Bogatyreva, K. (2022). Fear of failure and entrepreneurial behavior. Entrepreneurship & Regional Development, 34(7–8), 650–672.
State Bank of Pakistan. (2023). SME financing statistics 2023.
Sussan, F., & Acs, Z. J. (2021). The digital entrepreneurial ecosystem. Small Business Economics, 56(3), 1231–1246.
United Nations Conference on Trade and Development. (2022). Digital economy report 2022: Cross-border data flows and development. United Nations.
World Bank. (2022). Small and medium enterprises (SMEs) finance.
World Economic Forum. (2023). Global cybersecurity outlook 2023. World Economic Forum.
Wright, K. B. (2022). Researching Internet-based populations. Journal of Computer-Mediated Communication, 27(2), 1–10.
Zahra, S. A. (2021). International entrepreneurship in the post COVID world. Journal of World Business, 56(1), 101143.
Zhang, Y., & Chen, J. (2023). Digital capability and SME innovation performance. Industrial Marketing Management, 108, 12–24.
Downloads
Published
Issue
Section
License
- Copyright of all the submissions to the Market Forces will remain to the contributors.
- Anyone is allowed to distribute, remix, tweak, and build upon his/her work, even commercially, as long as it is credited/cited to the original contributors of the Market Forces.
