How ecosystem density shapes entrepreneurial engagement: The moderating role of digital infrastructure

Entrepreneurial ecosystems and digital infrastructure are increasingly recognized as key conditions shaping entrepreneurial behavior. However, ecosystem density, referring to the concentration of incumbent entrepreneurial actors, remains theoretically and empirically underexplored. This study adopts an ecological perspective to explain how density influences individual entrepreneurial engagement through countervailing mechanisms, and how digital infrastructure moderates these effects. Using 829,490 individual observations from 69 countries, we provide strong evidence of an inverted U-shaped relationship between ecosystem density and entrepreneurial engagement. Specifically, low density enhances engagement by reinforcing social legitimacy and improving resource feasibility, whereas high density suppresses engagement as competitive crowding intensifies. Moreover, we identify digital infrastructure as an ecological amplifier that magnifies both facilitative and inhibitive effects of entrepreneurial ecosystem density, resulting in a steeper nonlinear pattern. These findings advance the literature by articulating the micro-level behavioral responses to ecological dynamics and positioning digital infrastructure as a critical boundary condition. For policymakers and ecosystem builders, the results highlight the need for stage-contingent interventions: encouraging new entry in low-density ecosystems, and prioritizing resource expansion, differentiation, and scaling support in high-density contexts. Limitations related to the macro-level nature of density and cross-sectional mechanisms offer avenues for future research on temporal and regional evolution of entrepreneurial ecosystems. This study is relevant to scholars of entrepreneurship, innovation systems, and digital transformation, as well as practitioners involved in the design and governance of entrepreneurial ecosystems.