Role of digitalization and governance in sustainable entrepreneurship: evidence from developing economies

Junyu Chen (), Muhammad Atif Nawaz (), Thi Thuy Linh Tran () and Sanjar Mirzaliev ()
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Junyu Chen: Wuhan University of Technology
Muhammad Atif Nawaz: The Islamia University of Bahawalpur
Thi Thuy Linh Tran: Thai Nguyen University of Economics and Business Administration
Sanjar Mirzaliev: Tashkent State University of Economics

International Entrepreneurship and Management Journal, 2025, vol. 21, issue 1, No 114, 23 pages

Abstract: Abstract Sustainable entrepreneurship is a strategic focal point in business because it promotes inclusive and resilient economic progress while confronting environmental externalities. However, its escalating significance, pursuing sustainability within entrepreneurial ventures remains an enduring challenge, especially in emerging nations where institutional maturity and technological capabilities are unevenly distributed. A growing body of literature has investigated how governance and digitalization advance sustainable entrepreneurship, yet the area remains under-researched and lacks conceptual cohesion. Therefore, the present study addresses the gap by assessing the role of digitalization in sustainable entrepreneurship with a particular focus on governance as a moderator across 50 emerging economies from 2002 to 2021. The study addresses cross-sectional dependence and heteroscedasticity issues by employing the Driscoll-Kraay Standard Error estimation technique, delivering substantive empirical support. Findings indicate that digitalization markedly improves sustainable entrepreneurial efforts. However, governance reveals a negative direct influence, defying traditional assumptions. In addition, the moderating role of governance in the association between digitalization and sustainable entrepreneurship was found to be insignificant. These results affirm the significance of digital technologies in sustainable entrepreneurial initiatives; sub-optimal governance may hinder progress in emerging nations. The study stresses the coherent policies that harmonize digital advancements with institutional reforms. Graphical abstract

Keywords: Sustainable entrepreneurship; Technology; Digitalization; Governance; Sustainability (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s11365-025-01139-9

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