Digital Innovation Ecosystems and Entrepreneurial Performance: The Mediating Role of Opportunity Recognition and Technology Adoption in Emerging Economies
Keywords:
Digital Innovation Ecosystem, Entrepreneurial Performance, Opportunity Recognition, Technology Adoption, PLS-SEM, Smes, Emerging EconomiesAbstract
This study investigates the relationship between digital innovation ecosystems and entrepreneurial performance, with opportunity recognition and technology adoption as mediating variables. The rapid advancement of digital technologies has fundamentally transformed the entrepreneurial landscape, creating new opportunities and challenges for businesses in emerging economies. Drawing on dynamic capabilities theory and the technology acceptance model (TAM), this research examines how digital innovation ecosystems encompassing digital infrastructure, knowledge networks, and institutional support influence entrepreneurial outcomes. A quantitative research design was employed, utilizing structured questionnaires distributed to 312 small and medium enterprise (SME) owners and managers across five major cities in Indonesia. Structural Equation Modeling with Partial Least Squares (PLS-SEM) was applied to analyze the proposed model. The findings reveal that digital innovation ecosystems exert a significant positive influence on entrepreneurial performance (β = 0.421, p < 0.001). Furthermore, both opportunity recognition (indirect β = 0.196, 95% CI [0.124, 0.278]) and technology adoption (indirect β = 0.151, 95% CI [0.073, 0.233]) significantly mediate this relationship, indicating partial mediation as the direct effect remains significant. The indirect effects confirm that entrepreneurs who operate within robust digital ecosystems are more effective at identifying market opportunities and adopting relevant technologies, which in turn enhances their overall performance. These results contribute to the growing body of literature on digital entrepreneurship and provide practical implications for policymakers seeking to foster entrepreneurial activity in developing countries. The study underscores the importance of building comprehensive digital innovation ecosystems as a strategic lever for SME growth and national economic development.
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