Page 61 - Azerbaijan State University of Economics

Swaty Sharma, Munish Gupta: Does the Rise of Emerging Technologies Transform Digital
Entrepreneurial Activity? Evidence from OECD Nations

acknowledged, there remains a knowledge gap regarding the specific link between
digital entrepreneurship and ICT, especially in OECD countries.

Advancements in technology are one of the leading factors prompting the demand of
entrepreneurship. The adoption of ICT is central to strategies for promoting
entrepreneurship (Afawubo & Noglo, 2022). Transaction costs can be reduced
through ICT and organisational efficiency enhancements, while also serving as a
source of competitive advantage in building better relationships with clients and
suppliers. Moreover, this skill helps professional managers find and capitalise on
opportunities to increase market share, pursue strategic alliances, and engage in
mergers, especially in a global, competitive business world (Alderete, 2014, 2017).
ICT, in terms of experts, employees, and consumers, enables data exchange and
supports collaborative problem-solving within the business. In addition to aiding in
the launch of new businesses, ICT also supports the ongoing development and
scalability of entrepreneurship (Schiuma et al., 2022). In this context, ICT capital
stock, such as IT equipment, software, and communication tools, becomes a vital asset
for entrepreneurial ventures (González Calatayud et al., 2022).

Alderete (2017) highlighted the impact of ICT in promoting entrepreneurship,
illustrating its outcome ranging from 85 countries from the year 2007-2012. Applying
the RBV, access to ICT can be seen as a distinctive resource for achieving
entrepreneurial success (Plečko et al., 2023). ICT is an enabler of digital
entrepreneurship, having a positive effect on access to international markets, cost
reduction, and organizational efficiency (Alderete, 2017; Asongu & Nwachukwu,
2018). Although the potential of ICT has been acknowledged, the exact impact it has
on digital entrepreneurship has not yet been explored. An important facilitator to
entrepreneurial innovation is the ICT capital, including software and digital
infrastructure (Schiuma et al., 2022). Moreover, the available literature suggests that
ICT may increase operational efficiency, but excessive focus on ICT exports and a
lack of internal adoption may disrupt the development of local start-ups (Alderete,
2014; Plecko et al., 2023). This may lead to underpinning the indigenous TEN
activities where the digital entrepreneurs might not access infrastructural support that
is cheap or available.

ICT is the spine of the digital economy. It supports data management, relationship
building, and innovation in start-ups and established companies (Khan & Ximei,
2022; Satalkina & Steiner, 2020). Good ICT infrastructure facilitates access to
resources and identification of opportunities among entrepreneurs.

Hypothesis 1: ICT infrastructure development positively influences the Technology–
Entrepreneurship Nexus (TEN).

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