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How do technology and institutional adaptability promote sustainable economic entrepreneurship and growth?

Author

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  • Xu, Mo
  • Tao, Changqi
  • Zou, Xianya

Abstract

Both technology and institutions are crucial for economic sustainability, entrepreneurship, and growth. There is yet a limited focus in economic development on the role of the adaptability of technology and institutions. This study constructs a theoretical framework to explore the impact of technology–institution adaptability on economic growth. The research sample includes 30 regions of China from 2009 to 2020. This study applies the two-way fixed effects panel models and threshold models to test the propositions proposed within the theoretical framework. The study reveals that strengthening technology–institution adaptability contributes to economic growth. As technology–institution adaptability improves, the economic growth dynamics shift from simple labour and physical capital to human capital. Further research reveals that the impacts of technology–institution adaptability on economic growth are more prominent in regions with higher internet penetration and technology intensity. These findings create new insights and policy implications for promoting economic growth, especially for emerging economies.

Suggested Citation

  • Xu, Mo & Tao, Changqi & Zou, Xianya, 2024. "How do technology and institutional adaptability promote sustainable economic entrepreneurship and growth?," Journal of Business Research, Elsevier, vol. 172(C).
    • Handle: RePEc:eee:jbrese:v:172:y:2024:i:c:s0148296323008172
    DOI: 10.1016/j.jbusres.2023.114458
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