Digital entrepreneurship landscapes in developing Asia: insights from the Global Index of Digital Entrepreneurship Systems

Abstract

PurposeDigitalization is changing the way entrepreneurs pursue opportunities. We have elaborated a conceptual framework to gain a better understanding of digital entrepreneurship. Using this framework, we have developed the Global Index of Digital Entrepreneurship Systems (GIDES), an analytical tool designed to measure and comprehend the impact of digitalization on entrepreneurship. This study aims to answer the research question of what specific bottlenecks are hindering the performance of digital entrepreneurial systems in the countries under investigation, with a particular focus on developing Asian economies.Design/methodology/approachGIDES is a composite indicator that evaluates the performance of digital entrepreneurial systems on a national scale. Unlike traditional entrepreneurship or most entrepreneurial ecosystem measures, GIDES adopts a systemic approach using the Penalty for Bottleneck (PFB) algorithm to spot bottlenecks that potentially degrade overall system performance.FindingsGIDES assesses the digital entrepreneurship systems of 113 countries, with a specific focus on 21 developing Asian economies. Singapore is ranked first among developing Asian countries globally. However, most developing Asian economies have significant room for improvement. While developing Asia excels in terms of physical infrastructure, it needs to work on its culture and informal institutions.Originality/valueDigital transformation is not happening in isolation. Instead, it is closely linked to and happens within the context of entrepreneurship. The level of digitalization of the economy, described by digital framework conditions, impacts entrepreneurial activity through their influence on national-level general and systemic framework conditions. Thus, GIDES monitors all the general, structural and digital frameworks that support digital entrepreneurship. Consequently, it offers a deeper understanding of how digitalization impacts entrepreneurship.