Digital Transformation and Entrepreneurial Risk-Taking: Navigating Affordance and Apprehension in SME Intentions

Digitalization is reshaping entrepreneurship, yet the mechanisms that translate new technological possibilities into entrepreneurial intention remain poorly understood, especially for resource-constrained small and medium-sized enterprises (SMEs). Building on the Theory of Planned Behaviour, Entrepreneurial Risk-Taking Theory and Affordance Theory, this study proposes and tests an integrated model that captures how individual cognition, digital capability and platform-related risk interact to shape digital entrepreneurial intention (DEI). Survey data from 428 Greek SME owner-managers were analyzed with Partial Least Squares Structural Equation Modelling (PLS-SEM). Results show that entrepreneurial self-efficacy, financial risk tolerance, digital literacy and perceived platform affordances each exert significant positive effects on DEI, whereas perceived platform risk exerts a significant negative effect. Importantly, platform risk also dampens the positive impact of self-efficacy, revealing a boundary condition often overlooked in intention research. The findings position digital transformation as a double-edged phenomenon amplifying opportunity through affordances while simultaneously magnifying risk. The study advances theory by integrating risk perceptions and affordance recognition into a TPB framework, and it offers actionable guidance: policy makers should stabilize digital-regulatory regimes, platform providers should increase transparency and reliability, and SME support programs should blend digital-skills training with calibrated risk-management tools. Together, such measures can convert latent entrepreneurial confidence into resilient digital venture creation. This study contributes to theory by extending the Theory of Planned Behaviour with risk-sensitive boundary conditions, broadening Risk-Taking Theory to account for platform-specific uncertainties, and validating Affordance Theory in a digital SME context. Practically, it provides actionable guidance for entrepreneurs, policymakers, and platform operators on balancing digital capability development with systemic risk governance.