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Is digital business an enabler of enhanced entrepreneurship? An empirical investigation of European countries

Author

Listed:
  • Le Thanh Ha

    (National Economics University)

  • Pham Thi Ngoc Hanh

    (National Economics University)

  • Nguyen Thi Thu Hang

    (National Economics University)

  • Hoang Dang Khanh

    (National Economics University)

  • Le Lan Phuong

    (National Economics University)

  • Hoang Hop

    (National Economics University)

Abstract

The purpose of this study is to examine the impact of digital business on the ease of establishing new companies in 28 European countries from 2011 to 2019. A digital business can be described in terms of e-commerce, specifically e-commerce sales. Additionally, it encompasses e-business, with a focus on customer relationship management (CRM) usage. The study analyzes the digitalization-entrepreneurship nexus using the panel-corrected standard error (PCSE) model. Additionally, we employ the dynamic fixed-effects estimator (DFE) within the autoregressive distributed lag (ARDL) model to measure both short-run and long-run effects. Our findings suggest that digital business positively influences the density of entrepreneurship in a country. Our results remain robust when combining various econometric techniques with additional explanatory variables. However, the positive effects of digital business on the entrepreneurial sector become evident only in the long run. The use of digital business benefits the entrepreneurial sector by reducing the amount of time and money required to establish a new business.

Suggested Citation

  • Le Thanh Ha & Pham Thi Ngoc Hanh & Nguyen Thi Thu Hang & Hoang Dang Khanh & Le Lan Phuong & Hoang Hop, 2024. "Is digital business an enabler of enhanced entrepreneurship? An empirical investigation of European countries," Journal of International Entrepreneurship, Springer, vol. 22(2), pages 164-186, June.
    • Handle: RePEc:kap:jinten:v:22:y:2024:i:2:d:10.1007_s10843-024-00350-z
    DOI: 10.1007/s10843-024-00350-z
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    More about this item

    Keywords

    Digital business; Entrepreneurship density; Short-term and long-term effects; European countries;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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