How can digital transformation and entrepreneurship influence business activities? A systematic analysis for cutting-edge economies

Abstract

Over the last few decades, the business landscape has undergone significant changes, and new investors have faced severe challenges in achieving their desired goals. The business sector has compelled practitioners to introduce some innovative methods that promote the business’s activities at lower intrinsic costs. Thus, the inclusion of digital transformation in business activities has been proposed as the best solution to avoid the business loss trap. In the era of development, digital transformation has received immense attention from higher authorities to spur information technology in business activities. It behaves in a friendly manner across different regions of the globe in problematic situations such as pandemics, financial crises, and energy shocks. Therefore, for the first time, this study tries to demonstrate the critical role of information technology in new business activities for seven emerging economies from 2005 to 2021. However, this study employs different estimators to evaluate its objectives. The results of the basic model indicate that income, information technology, foreign direct investment, and financial inclusion make significant contributions to business start-ups. The entrepreneurial role remains positive and significantly contributes to new businesses by 0.005%. However, urbanization shows a positive but insignificant role in business activities. Additionally, this study examines the mediating role of information technology on income, entrepreneurship, foreign direct investment, and financial inclusion, revealing a significant impact on business start-ups. Finally, the systematic information technology analysis supports business activities in specified countries. Based on the findings, this study proposes some imperative implications for attracting investors to invest in new business projects.