Digital transformation and entrepreneurship: a comprehensive perspective on the Nordic countries

Pedro Mendonça Silva, Victor Ferreira Moutinho and Xavier Almeida Oliveira

European Journal of Innovation Management, 2024, vol. 28, issue 7, 3071-3102

Abstract: PurposeThe purpose of this study is to investigate the intricate relationship between digitalization, entrepreneurship and financial/digital literacy in the Nordic countries from 2010 to 2022. By integrating both demand (social impact) and supply (business response) perspectives, the research aims to provide a comprehensive understanding of how digital transformation influences entrepreneurial activities. It addresses gaps in the existing literature, particularly the need for long-term analysis and the exploration of entrepreneurial actions within specific systemic contexts.Design/methodology/approachSeveral indicators were used to measure digitalization, entrepreneurship and financial/digital literacy from secondary sources. The methodology employed in this study involved the estimation of dynamic linear models to investigate the evolving relationship between digitalization and entrepreneurial activity. First, a bias-corrected test for the Granger noncausality test was used. After this preliminary analysis, the estimation autoregressive model with bias correction and time effects was applied, followed by an alternative model entitled the autoregressive distributed lag model (ARDL), selecting the pooled mean group and dynamic fixed effect estimators.FindingsKey findings highlight the pivotal role of digitalization drivers such as e-commerce, CRM integration and investments in R&D in shaping innovative business models. Furthermore, the study emphasizes the entrepreneurial potential unleashed by widespread Internet adoption, particularly among diverse countries. The results also reveal the significance of R&D in periods of disruption and the intertwined relationship between digital and financial literacy and entrepreneurship. Notably, the study underscores the importance of a holistic understanding as e-commerce and e-banking intertwine to enhance financial and digital literacy.Practical implicationsPractical implications suggest policymakers support entrepreneurs through training programs, while businesses are encouraged to adapt strategies and prioritize innovation in digital environments. The study advocates for a strategic and long-term perspective to address the implications of digitalization on entrepreneurship, highlighting the critical role of research and development in fostering innovation during disruptive phases.Originality/valueThe novel contribution of this research lies in its thorough examination of the intricate relationship between digitalization, entrepreneurship and financial/digital literacy, particularly within the Nordic countries. By bridging gaps in existing literature and focusing on entrepreneurial behaviours within specific systemic contexts, the study offers valuable insights into the nuanced dynamics at play.

Keywords: Digital transformation; Entrepreneurship; Nordic countries; Financial literacy; Dynamic linear models (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/ejim/article/28/7/3071/124 ... d-entrepreneurship-a (text/html)
https://www.emerald.com/ejim/article-pdf/28/7/3071 ... m-04-2024-0374en.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:ejimpp:ejim-04-2024-0374

DOI: 10.1108/EJIM-04-2024-0374

Access Statistics for this article

European Journal of Innovation Management is currently edited by Dr Vincenzo Corvello

More articles in European Journal of Innovation Management from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().