Nexus between Digital Entrepreneurship and Entrepreneurs’ Innovative Predisposition with the Moderating Role of Social Capital


  • Mahad Jehangir Institute of Business Administration Gomal University D.I.Khan
  • Sher Zaman Khan Institute of Business Administration Gomal University D.I.Khan


To cope with the challenges of the digital era, entrepreneurs hunted a novel version of entrepreneurship i.e. digital entrepreneurship. Digital entrepreneurship is the process of hunting opportunities by using the digital technologies and information communication technologies (ICTs) for launching startups and revolutionizing existing corporations. Aim of the current research is to find out the moderating role of social capital in the relationship of digital entrepreneurship with entrepreneurs’ innovative predisposition. Researcher collected primary data (cross-sectional) from the digital entrepreneurs of Pakistan by distributing well-structured developed and adapted questionnaire. Current study applied various descriptive (Normality, Reliability, Factor Analysis) and inferential tests (Pearson’s Product Moment Correlation, Hierarchical Multiple Regression and Test of Significance) to analyze the phenomenon. Results elaborated that the instrument used for data collection is reliable, valid and the data collected through the scale is normal. Results also revealed that there is significant relationship among digital entrepreneurship, entrepreneurs’ innovative predisposition and social capital. Furthermore, it is revealed that there is significant influence of digital entrepreneurship on entrepreneurs’ innovative predisposition. Analysis also identifies that social capital does act as enhancing moderator in between predictor and criterion variable. It is concluded from the findings of the study that digital entrepreneurship plays an important role in improving the innovative predisposition of entrepreneurs that are pivotal for the economic growth of the region as well as country. So, this study contributes in actor network theory by inclusion of social capital as moderator and analyzed its effect on relationship of digital entrepreneurship with entrepreneurs’ innovative predisposition to make decisions for the betterment of digital entrepreneurs and society. 

Author Biographies

Mahad Jehangir, Institute of Business Administration Gomal University D.I.Khan

PhD Scholar at Institute of Business Administration Gomal University D.I.Khan

Sher Zaman Khan, Institute of Business Administration Gomal University D.I.Khan


IBA, Gomal University D.I.Khan KP, Pakistan.


Adeboye, T. (1996). Technological capabilities in small and medium enterprise clusters: Review of international experience and implications for developing countries. Science, Technology and Development (United Kingdom).

Ahrens J-P, Isaak AJ, Istipliler B, Steininger DM (2019) The star citizen phenomenon & the �ultimate dream management’ technique in crowdfunding. In: Proceedings of the 40th international conference on information systems (ICIS), Munich, pp 1–9

Aiken, L. S. & West, S. G. (1991). Multiple Regression: Testing and Interpreting Interactions. Newbury Park, CA: Sage.

Amir, M. T. (2015). Validation of Innovative Predisposition as A Multidimensional Construct. Journal of Technology Management, 14(1), 66-80.

Anckar, R. (2016). Digital Entrepreneurship in Finland–a Narrative of a finnish digital entrepreneur. In Innovative (Eco-) Technology, Entrepreneurship and Regional Development. Conference proceedings.

Aparicio, S., Urbano, D., & Audretsch, D. (2016). Institutional factors, opportunity entrepreneurship and economic growth: Panel data evidence. Technological forecasting and social change, 102, 45-61.

Arora, A., Fosfuri, A., and Gambardella, A. (2002), Markets for Technology: The Economics of Innovation and Corporate Strategy, MIT Press, Cambridge.

Bagheri, A., & Akbari, M. (2018). The impact of entrepreneurial leadership on nurses’ innovation predisposition. Journal of Nursing Scholarship, 50(1), 28-35.

Baker, W. (1990). Market networks and corporate predisposition. American Journal of Sociology, 96: 589-625.

Baumol, W. J. (1990). Entrepreneurship: Productive, unproductive, and destructive. Journal of political economy, 98(5, Part 1), 893-921.

Berger ESC, von Briel F, Davidsson P, Kuckertz A (2019) Digital or not—the future of entrepreneurship and innovation: introduction to the special issue. J Bus Res. 2019.12.020.

Blaikie, N. (2003). Analyzing quantitative data: From description to explanation. Sage.

Block JH, Fisch CO, van Praag M (2018) Quantity and quality of jobs by entrepreneurial firms. Oxford Rev Econ Policy 34(4):565–583.

Bourdieu, P. (1986). The forms of capital. Handbook of theory and research for the sociology of education. JG Richardson. New York, Greenwood, 241(258), 19.

Carey, S., Lawson, B., & Krause, D. R. (2011). Social capital configuration, legal bonds and performance in buyer–supplier relationships. Journal of operations management, 29(4), 277-288.

Carmelli, A., Meitar, R., & Weisberg, J. (2006). Self-leadership skills and innovative behaviour at work. International Journal of Manpower, 27(1), 75-90.

Castells, M. (2010) The Rise of the Network Society. West Sussex, UK: Wiley-Blackwell.

Chin, W. W., B. L. Marcolin, and P. R. Newsted (2003) "A Partial Least Squares Latent Variable Modeling Approach for Measuring Interaction Effects: Results from a Monte Carlo Simulation Study and an Electronic-Mail Emotion / Adoption Study," Information Systems Research (14)2, pp. 189-217.

Coleman, J. S. (1988). Social capital in the creation of human capital. American journal of sociology, 94, S95-S120.

Coleman, J. S. (1990). Foundations of Social Theory. Cambridge, MA: Harvard University Press.

Collier, Paul. (1998). "Social Capital and Poverty." Social Capital Initiative Working Paper 4. World Bank, Social Development Department, Washington, D.C. Processed.

Cook, L. D. (2011). Inventing social capital: Evidence from African American inventors, 1843–1930. Explorations in Economic History, 48(4), 507-518.

Davidson, E., & Vaast, E. (2010, January). Digital entrepreneurship and its socio material enactment. In System Sciences (HICSS), 2010 43rd Hawaii International Conference on (pp. 1-10). IEEE.

De Run, E., Cyril. (2004). Unintended Effects of Ethnically Targeted Advertising. Unpublished Dissertation, University of Otago, Dunedin, New Zealand.

De Vaus, D. (2002). Analyzing social science data: 50 key problems in data analysis. sage.

Drucker, P. F. (1994), Innovation and Entrepreneurship: Practice and Principles, Heinemann, London.

Ettlie, J. E., & Pavlou, P. A. (2006). Technology‐based new product development partnerships. Decision Sciences, 37(2), 117-147.

Europa 2016. Growth. Stimulating European digital entrepreneurship.

European Commission (2013). European Commission (EC), Digital Entrepreneurship study; Project Description, 2013, available from:

European Commission (2014). Fueling digital entrepreneurship in Europe, Background paper. At = GROWTH&swlang=en&x=18&y=8

European Commission (2015). European Commission (EC), Digital Transformation of European Industry and Enterprises; A report of the Strategic Policy Forum on Digital Entrepreneurship, available from:

European Commission. (n.d.). Europa 2016. Growth. Stimulating European digital entrepreneurship. Retrieved from

FandiГ±o, A., Marques, C., Menezes, R., & Bentes, S. R. (2015). Organizational social capital Scale based on Nahapiet and Ghosal model: development and validation. Review of Contemporary Business Research, (2), 25-38.

Farr, J. & Ford, C. (1990), “Individual innovation”, in West, M. and Farr, J. (Ed), Innovation and Creativity at Work, Joh Wiley and Sons, Chichester.

Felin, T., Foss, N.J. and Ployhart, R.E. (2015), “The micro foundations movement in strategy and organization theory”, Academy of Management Annals, Vol. 9 No. 1, pp. 575-632.

Field, A. (2013). Discovering statistics using IBM SPSS statistics. sage.

Fisch C (2019) Initial coin offerings (ICOs) to finance new ventures. J Bus Venturing 34(1):1–22

Fukuyama, F. (2001). Social capital, civil society, and development. Third world quarterly, 22(1), 7-20.

Fukuyama, F. (1995). Trust: Social virtues and the creation of prosperity. London: Hamish Hamilton.

Gefen, D., & Straub, D. (2005). A practical guide to factorial validity using PLS-Graph: Tutorial and annotated example. Communications of the Association for Information systems, 16(1), 5.

Global Entrepreneurship Monitor (GEM) (2013). Kelley, D., Brush, C., Greene, P., Litovsky, Y. and Global Entrepreneurship Research Association. 2012 Women’s Report. [online] Available at: <> [Accessed 1 August 2013].

Grabowski, S., Koleonidis, M., Arshad, S., Sohail S., & Ibrahim, M. A. (2017). Digital Entrepreneurial Ecosystem in Pakistan – How Pakistan can Build a World-Class Digital Ecosystem (Rep). Jazz Foundation. Retrieved from

Grupp, H. (2001), Managing New Product Development and Innovation: A Microeconomic Toolbox, Edward Elgar, Cheltenham.

Gupta, V., MacMillan, I. C., & Surie, G. (2004). Entrepreneurial leadership: developing and measuring a cross-cultural construct. Journal of business venturing, 19(2), 241-260.

Hafezieh, N., Akhavan, P., & Eshraghian, F. (2011). Exploration of process and competitive factors of entrepreneurship in digital space: a multiple case study in Iran. Education, Business and Society: Contemporary Middle Eastern Issues, 4(4), 267-279.

Hair, J. F., Black, B., Babin, B., Anderson, R. E., and Tatham, R. L. (2007). Multivariate Data Analysis, 7th edition. Upper Saddle River, NJ: Prentice Hall

Hamid, N., & Khalid, F. (2016). Entrepreneurship and innovation in the digital economy. The Lahore Journal of Economics, 21, 273.

Hayes, A. F. (2013). The PROCESS macro for SPSS and SAS (version 2.13)[Software].

Herbig, P., Golden, E. J., and Dunphy, A. (1994), �The relationship of structure to entrepreneurial and innovative success’, Marketing Intelligence & Planning, Vol 12, No 9, pp 37–48.

Hinkin, T. R., Tracey, J. B., & Enz, C. A. (1997). Scale construction: Developing reliable and valid measurement instruments. Journal of Hospitality & Tourism Research, 21(1), 100-120.

Hinton, P.R., Brownlow, C., McMurvay, I. and Cozens, B. (2004) SPSS explained. East Sussex, England: Routledge Inc.

Hsieh, Y.-J. and Wu, Y. (2018), “Entrepreneurship through the platform strategy the digital era: insights and research opportunities”, Computers in Human Predisposition, pp. 1-9.

Hull, C. E. K., Hung, Y. T. C., Hair, N., Perotti, V., & DeMartino, R. (2007). Taking advantage of digital opportunities: a typology of digital entrepreneurship. International Journal of Networking and Virtual Organisations, 4(3), 290-303.

Inkpen, AC & Tsang, EWK (2005), 'Social Capital, Networks, and Knowledge Transfer', The Academy of Management Review, vol. 30, no. 1, pp. 146-65.

Jaccard, J., Turrisi, R. & Wan, C. K. (1990). Interaction Effects in Mu1h)le Regression. Newbury Park, CA: Sage.

Jafri, M. H. (2010). Organizational commitment and employee's innovative predisposition: A study in retail sector. Journal of Management Research, 10(1), 62-68.

Janssen, O. (2000). Job demands, perceptions of effort-reward fairness and innovative work predisposition. Journal of Occupational and Organizational Psychology, 73, 287–302.

Janssen, O. (2004). How fairness perceptions make innovative predisposition more or less stressful. Journal of organizational predisposition, 25(2), 201-215.

Janssen, O., Van de Vliert, E., & West, M. (2004). The bright and dark sides of individual and group innovation: A special issue introduction. Journal of organizational predisposition, 25(2), 129-145.

Javalgi, R. R. G., Todd, P. R., Johnston, W. J., & Granot, E. (2012). Entrepreneurship, muddling through, and Indian Internet-enabled SMEs. Journal of Business Research, 65(6), 740-744.

Jayawarna, D., Jones, O., & Macpherson, A. (2011). New business creation and regional development: Enhancing resource acquisition in areas of social deprivation. Entrepreneurship & Regional Development, 23(9-10), 735-761.

Johnson, D. (2001). What is innovation and entrepreneurship? Lessons for larger organisations. Industrial and commercial training, 33(4), 135-140.

Kanungo, R. N. (1998), Entrepreneurship and Innovation: Models for Development, Sage, London.

Kickul, J. R., Gundry, L. K., & Sampson, S. D. (2007). Women entrepreneurs preparing for growth: The influence of social capital and training on resource acquisition. Journal of Small Business & Entrepreneurship, 20(2), 169-181.

Khan, S. Z., Yang, Q., Khan, N. U., & Waheed, A. (2019). Entrepreneurship posture and new venture performance in Pakistan. Human Systems Management, 38(1), 55-72.

Kline, R. B. (2005). Methodology in the social sciences.

Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and psychological measurement, 30(3), 607-610.

Kyobe, M. E. (2004). Investigating the strategic utilization of IT resources in the small and medium-sized firms of the eastern free state province. International Small Business Journal, 22(2), 131-158.

Latour, B. (2005). Reassembling the social - An introduction to actor-network-theory Oxford University Press, Oxford, UK, p. 301.

Le Dinh, T., Vu, M. C., & Ayayi, A. (2018). Towards a living lab for promoting the digital entrepreneurship process. International Journal of Entrepreneurship, 22(1), 1-17.

Leana III, C. R., & Van Buren, H. J. (1999). Organizational social capital and employment practices. Academy of management review, 24(3), 538-555.

Lee (2009). 'Social capital and business and management: setting a research agenda', International Journal of Management Reviews, vol. 11, no. 3, pp. 247-73.

Legge, J., and Hindle, K. (1997), Entrepreneurship: How Innovators Create the Future, MacMillian Publishers, Melbourne.

Loury, G. (1987). Why should we care about group inequality? Social Philosophy & Policy, 5: 249-271.

Loury, G. C. (1977). A dynamic theory of racial income differ-ences. In P. A. Wallace & A. M. LaMonde (Eds.), Women, minorities, and employment discrimination: 153-186. Lex-ington, MA: Lexington Books.

Lukes, M., & Stephan, U. (2017). Measuring employee innovation. International Journal of Entrepreneurial Predisposition & Research.

Lusch, R. F., & Nambisan, S. (2015). Service innovation: A service-dominant logic perspective. MIS quarterly, 39(1).

Maclnnis, D. J., & Jaworski, B. J. (1989). Information Processing from Advertisements: Toward an Integrative Framework. The Journal of Marketing, 53(4), 1-23.

Martyn, R., Amanda, N., & James, S. (2003). Barriers to start up and their effect on aspirant entrepreneurs. Education & Training, 45(6), 308-316.

Meyers, L. S., Gamst, G., & Guarino, A. J. (2006). Applied Multivariate Research: Design and Interpretation. Thousand Oaks London: SAGE Publications.

Miao, Q., Newman, A., Schwarz, G., & Cooper, B. (2018). How leadership and public service motivation enhance innovative predisposition. Public Administration Review, 78(1), 71-81.

Miron, E., Erez, M., & Naveh, E. (2004). Do personal characteristics and cultural values that promote innovation, quality, and efficiency compete or complement each other?. Journal of organizational predisposition, 25(2), 175-199.

Möller & Rajala, A (2007) 'Rise of strategic nets -- New modes of value creation', Industrial Marketing Management, vol. 36, no. 7, pp. 895-908.

Moore, E. S., & Lutz, R. J. (2000). Children, Advertising, and Product Experiences: A Multimethod Inquiry. Journal of Consumer research, 31-48.

Moraa, H., & Gathege, D. (2013, December). How ICT hubs models have impacted on the technology entrepreneurship development. In Proceedings of the Sixth International Conference on Information and Communications Technologies and Development: Notes-Volume 2 (pp. 100-103). ACM.

Muehling, D. D., Laczniak, R. N., & Stoltman, J. J. (1991). The Moderating Effects of Ad Message Involvement: A Reassessment. Journal of Advertising, 29-38.

Nahapiet, J., and Ghoshal, S. (1998), "Social Capital, Intellectual Capital, and the Organizational Advantage," Academy of Managemen Reviewt (23:2), pp. 242-266.

Nambisan, S. 2017. Digital Entrepreneurship: Toward a Digital Technology Perspective of Entrepreneurship. Entrepreneurship Theory and Practice, 41(6), Sage publications Inc. 1029 – 1055.

Neira, I., Portela, M., Cancelo, M., & Calvo, N. (2013). Social and human capital as determining factors of entrepreneurship in the Spanish Regions. Investigaciones Regionales-Journal of Regional Research, (26), 115-139.

Nunnally, J. C. (1978). Psychometric Theory: 2d Ed. McGraw-Hill.

O’Reilly, T. 2007. What is web 2.0: Design patterns and business models for the next generation of software, Communications & Strategies: First quarter 2007, p 17.

Oestreicher-Singer, G., & Zalmanson, L. (2013). Content or community? A digital business strategy for content providers in the social age. MIS quarterly, 37(2): 591-616.

Onetti, A., Zucchella, A., Jones, M., McDougall-Covin, P. 2012. Internationalization, innovation, and entrepreneurship: business models for new technology-based firms. Journal of Management & Governance. 16(3): 337-368.

Pallant, J., & Manual, S. S. (2010). A step by step guide to data analysis using SPSS. Berkshire UK: McGraw-Hill Education.

Panetta, F. (2017). Digital innovation in the Italian financial industry. BANCARIA, 10, 54-56.

Pearce, C. L., & Ensley, M. D. (2004). A reciprocal and longitudinal investigation of the innovation process: The central role of shared vision in product and process innovation teams (PPITs). Journal of organizational Predisposition, 25(2), 259-278.

Pieterse, A. N., Van Knippenberg, D., Schippers, M., & Stam, D. (2010). Transformational and transactional leadership and innovative predisposition: The moderating role of psychological empowerment. Journal of organizational predisposition, 31(4), 609-623.

Putnam, R. D. (1993). The prosperous community: Social capital and public life. American Prospect, 13: 35-42.

Putnam, R. D., & Helliwell, J. F. (1999). Education and social capital. National Bureau of Economic Research.

Putnam, R., Leonardi, R., & Nanetti, R. (1993). Making democracy work Princeton. NJ: Princeton University Pi-ess.

Ramos-RodrГ­guez, A-R, Medina-Garrido, J-A, Lorenzo-GГіmez, J-D & Ruiz-Navarro, J (2010). 'What you know or who you know? The role of intellectual and social capital in opportunity recognition', International Small Business Journal, vol. 28, no. 6, pp. 566-82.

Rao, S. S. (2004). Role of ICTs in India's rural community information systems. info.

Renko, M., El Tarabishy, A., Carsrud, A. L., & Brännback, M. (2015). Understanding and measuring entrepreneurial leadership style. Journal of small business Management, 53(1), 54-74.

Richter, C., Kraus, S., & Bouncken, R. B. (2015). Virtual currencies like Bitcoin as a paradigm shift in the field of transactions. International Business & Economics Research Journal (IBER), 14(4), 575-586.

Robison, L. J., Myers, R. J., & Siles, M. E. (2002). Social capital and the terms of trade for farmland. Applied Economic Perspectives and Policy, 24(1), 44-58.

Ruddick, M. E., Sherwood, P. K., & Stevens, R. E. (1983). The marketing research handbook: A decision-oriented approach. Prentice Hall.

Schumpeter, J. (1934), The Theory of Economic Development, Harvard (reproduced 1961, New York).

Scott, S. G., & Bruce, R. A. (1994). Determinants of innovative predisposition: A path model of individual innovation in the workplace. Academy of management journal, 37(3), 580-607.

Sekaran, U., & Bougie, R. (2013). Edisi 6. Research Methods for Business.

Shen KN, Lindsay V, Xu Y (2018) Digital entrepreneurship. Information System Journal 28(6):1125–1128.

Spreitzer, G. M. (1995). Psychological empowerment in the workplace: Dimensions, measurement, and validation. Academy of management Journal, 38(5), 1442-1465.

Steininger DM (2019) Linking information systems and entrepreneurship: a review and agenda for IT-associated and digital entrepreneurship research. Inf Syst J 29(2):363–407

Stoneman, P. (1995), Handbook of the Economics of Innovation and Technological Change, Blackwell, Oxford.

Sundbo, J. (1998), The Theory of Innovation: Entrepreneurs, Technology and Strategy, Edward Elgar, Massachusetts.

Tabachnick, B. G., Fidell, L. S., & Ullman, J. B. (2007). Using multivariate statistics (Vol. 5, pp. 481-498). Boston, MA: Pearson.

Veit D, Clemons E, Benlian A, Buxmann P, Hess T, Kundisch D et al (2014) Business models: an information systems research agenda. Bus Inf Syst Eng 6(1):45–53.

Waker, H. 2006. The virtual organization: a new organizational form?.

Wenjie, L. & Wenuy, D. & Lia (2017). Digital Entrepreneurship Ecosystem as a New Form of Organizing: The Case of Zhongguancun. Front. Bus. Res. China, 11 (1), 69 – 100.

West, M. A., & Farr, J. L. (1989). Innovation at work: Psychological perspectives. Social predisposition.

Woolcock, M. (1998). Social capital and economic development: Toward a theoretical synthesis and policy framework. Theory and society, 27(2), 151-208.

Yamane, T. (1967). Elementary sampling theory.

Zhao, F. (2001), �Managing innovation and quality of collaborative R&D’, Proceedings of 5th International & 8th National Research Conference, Melbourne.

Zhao, F., & Collier, A. (2016). Digital entrepreneurship: Research and practice. In 9th Annual conference of the EuroMed academy of business. 14–16 September 2016. Warsaw, Poland.