Digital enablers of entrepreneurial innovation: fsQCA and NCA analysis

The objective of this paper is to analyze the country-level causal configurations of digital enablers that result in entrepreneurial innovation in new ventures. Entrepreneurial innovation is a complex phenomenon that draws on a combination of context-dependent causal conditions, which explain the configurations of external factors that integrate into the entrepreneurial process. In this paper, we focus on the contextual role of information and communication technologies (ICT) from an organizational center-edge approach.

This study employs case-oriented techniques, specifically fuzzy-set qualitative comparative analysis (fsQCA) and necessary condition analysis (NCA), to identify the necessary and sufficient conditions that lead to entrepreneurial innovation. A dataset comprising 61 countries was merged from the World Economic Forum’s Networked Readiness Index and the Global Entrepreneurship Monitor in order to explore the causal combinations of ICT adoption, online transactions business-to-business, business model innovation and organizational innovation.

The fsQCA demonstrates that entrepreneurial innovation can be attributed to two causal configurations. The first configuration includes ICT adoption, online business-to-business transactions and the absence of organizational innovation. The second configuration is characterized by ICT adoption, online business-to-business transactions and business model innovation. The NCA reveals that the conditions in question possess varying degrees of importance, with each condition exerting a distinct degree of influence on the generation of varying levels of entrepreneurial innovation. The case-oriented techniques employed in this research paper have yielded preliminary insights into the relationship between digital enablers and entrepreneurial innovation, particularly in groups of countries with varying degrees of necessity to these enablers.

Our research provides a framework for the development of more effective digital strategic mixes for each identified group of countries. It also raises theoretical questions about the national conditions that encourage a particular digital enabler to stimulate a specific form of entrepreneurial innovation in new ventures.

In lieu of pursuing definitive causal explanations, this study proposes alternative configurations. While fsQCA demonstrates that entrepreneurial innovation is contingent upon distinctive causal conditions, extending the analysis to NCA reveals the level of necessity required for a condition to yield varying degrees of entrepreneurial innovation. The integration of fsQCA and NCA offers a more nuanced understanding of context-dependent factors that define entrepreneurial innovation in new ventures than fsQCA alone.