Digital entrepreneurial ecosystems: Revealing the drivers and implications of digitalisation for start-ups

Abstract

This article explores both the drivers of the digitalisation of start-ups, and its impact on their economic, innovative and social performance. Integrating the framework of the digital entrepreneurial ecosystem (DEE) and the institutional perspective of ecosystems, structural equation modelling is used to test hypotheses on data collected from 206 Brazilian start-ups. Findings reveal that the dimensions of the DEE, its resources, institutions and infrastructures, contribute to strengthening the digitalisation of start-ups. However, this might not be equally relevant for diverse contexts. The results also extend entrepreneurial orientation (EO) theory by investigating its role as mediator: innovation, proactivity and risk-taking enhance DEE factors in the use of digital technologies for developing products and services, processes and customer interactions. As digital tools are implemented, and EO is internalised, benefits can also be observed in the social domain. Managerial and policy implications are suggested for developing supportive DEEs in emerging countries.