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The impact of digitalization on entrepreneurial activity and sustainable competitiveness: A panel data analysis

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  • Dabbous, Amal
  • Barakat, Karine Aoun
  • Kraus, Sascha

Abstract

Public and private stakeholders increasingly rely on digital technologies to foster entrepreneurial ecosystems while pursuing the goal of sustainable competitiveness, which entails ensuring economic, environmental, and social development. Recently, the emergence of the twin transitions concept portraying an incontestable complementarity between digital and green transitions has led to calls for further research. Few studies have however investigated the antecedents of nations’ sustainable competitiveness. The present study fills this gap in the literature and quantitatively evaluates the effect of digitalization on entrepreneurial activity and sustainable competitiveness. It uses annual secondary data for an unbalanced panel of 34 countries from 2015 to 2018. Incorporating digitalization as a major disruptive factor that shapes our current lives, the results show that it positively affects entrepreneurial activity and sustainable competitiveness and that entrepreneurial activities drive sustainable competitiveness. The facets of digitalization influence sustainable competitiveness to various degrees; where connectivity, Internet use, and digital integration appear to be the main components affecting it. Whereas digital skills and digital public services are less significant. The results offer theoretical and practical implications for governments and policymakers, who are encouraged to nurture the creation of new ventures, ensure widespread and reliable connectivity, increase Internet use, and push for greater digital integration.

Suggested Citation

  • Dabbous, Amal & Barakat, Karine Aoun & Kraus, Sascha, 2023. "The impact of digitalization on entrepreneurial activity and sustainable competitiveness: A panel data analysis," Technology in Society, Elsevier, vol. 73(C).
    • Handle: RePEc:eee:teinso:v:73:y:2023:i:c:s0160791x23000295
    DOI: 10.1016/j.techsoc.2023.102224
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    Citations

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    Cited by:

    1. Ullah, Atta & Ullah, Saif & Pinglu, Chen & Khan, Saba, 2023. "Impact of FinTech, governance and environmental taxes on energy transition: Pre-post COVID-19 analysis of belt and road initiative countries," Resources Policy, Elsevier, vol. 85(PA).
    2. Uzule Kristine & Verina Natalija, 2023. "Digital Barriers in Digital Transition and Digital Transformation: Literature Review," Economics and Culture, Sciendo, vol. 20(1), pages 125-143, June.
    3. Ren, Ting & Liu, Xin & Ding, Jinqiong, 2023. "Intergenerational dynamics of digital transformation in family firms," Technology in Society, Elsevier, vol. 74(C).
    4. Li, Ganglei & Shao, Yunfei, 2023. "How do top management team characteristics affect digital orientation? Exploring the internal driving forces of firm digitalization," Technology in Society, Elsevier, vol. 74(C).
    5. Shaengchart, Yarnaphat & Kraiwanit, Tanpat & Butcharoen, Smich, 2023. "Factors influencing the effects of the Starlink Satellite Project on the internet service provider market in Thailand," Technology in Society, Elsevier, vol. 74(C).
    6. Jurgita Bruneckienė & Ineta Zykienė & Ieva Mičiulienė, 2023. "Rethinking National Competitiveness for Europe 2050: The Case of EU Countries," Sustainability, MDPI, vol. 15(13), pages 1-24, July.

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