Effect of digital ecosystem embeddedness on farmers’ entrepreneurial performance: evidence from China

Abstract

Digital ecosystem embeddedness subverts the promotion mechanism of farmers’ entrepreneurial performance; however, related research is scarce. This study constructed a theoretical mechanism model and applied a structural equation model, regression analysis, and bootstrapping to explore the impact of digital ecosystem embeddedness on farmers’ entrepreneurial performance, based on survey data from 592 farmer start-ups in South China and East China. The research finds that digital ecosystem embeddedness has a significant impact on social networks and farmers’ entrepreneurial performance, with social networks acting as a mediator between digital ecosystem embeddedness and farmers’ entrepreneurial performance. Social networks positively affect entrepreneurial learning and resource management, and entrepreneurial learning and resource management positively affect farmers’ entrepreneurial performance. Both entrepreneurial learning and entrepreneurial resource management exert a mediating effect between social network and farmers’ entrepreneurial performance, respectively. Digitalization capability exerts a moderating effect between digital ecosystem embeddedness and social networks. The results show that the promotion mechanism of digital ecosystem embeddedness on farmers’ entrepreneurial performance constructs a new cognitive and resource space for entrepreneurs by rebuilding social networks to provide a combination of continuous learning support and efficient resource aggregation. This study enriches our understanding of the effect of digital ecosystem embeddedness on farmers’ entrepreneurial performance by depicting an integrated mechanism for entrepreneurial performance promotion in a digital context. It also provides practical guidance for farming start-ups to develop sustainable entrepreneurial advantages in a digital context.