Abstract:
Sustainable
Digital
Entrepreneurship
(SDE),
Frugal Digital
Innovation,
ResourceConstrained
Ecosystems,
Value Creation
Model,
Mixed-Methods,
Resource-Based
View (RBV)
Description:
According to the western-centric paradigm, the success of digital ventures
requires the implementation of complex and capital-intensive technologies.
However, there is a conundrum regarding the need for small and medium
enterprises in Sub-Saharan Africa to overcome extreme institutional gaps, low
broadband penetration rates and limited access to funds, while simultaneously
needing to have global standards for socio-environmental tracking for their
patient funding. This study proposes and empirically tests an integrative model
of Sustainable Digital Entrepreneurship (SDE) in the challenging context of
Western Kenya. Following a mixed-methods approach, qualitative data from 18
purposefully selected, successful sustainable digital entrepreneurs, analysed
using NVivo 14 software, are paired with quantitative data from a snowball
sample of 30 digital entrepreneurs. Analysis includes descriptive statistics,
regressions, and a correlation matrix. The conceptual framework of the
underlying model combines the Resource-Based View (RBV), Institutional
Theory, and Stakeholder Theory. The finding suggests that Socio-Environmental
Value Creation (SEVC) is significantly and highly associated with the level of
execution of Sustainable Digital Entrepreneurship activities (r = 0.68, p < 0.01).
A robust co-mediation mechanism is present, indicating that SEVC is
significantly affected by such factors as Frugal Digital Capability (r = 0.61),
Community Engagement (r = 0.55), and Local Institutional Support (r = 0.50).
Optimised SMS-based services, light USSD architectures, as well as offline-first
mobile apps are some examples of a frugal approach, which enabled
entrepreneurs to receive the highest score of 4.8 out of 5.0. Moreover, it was
found that a significant and high correlation exists between the practice of
tracking sustainability performance (r = 0.68) and the level of overall business
performance of those digital entrepreneurs who actively track their sustainability
performance. This study challenges the Resource-Based View assumptions of
focusing on assets, since it suggests low-threshold digital designs can work well
in resource-poor environments. It practically results in a region-specific
scorecard, which decreases the information asymmetry when considering the
investment of impact investors and offers a comprehensive socio-environmental
evaluation score for policymakers.
