Digital literacy, entrepreneurial networking, and sustainable innovation: Economic and cultural determinants of entrepreneurial success in the Middle East

Abstract

ABSTRACT Purpose This study investigates the influence of digital literacy, entrepreneurial networking, knowledge sharing, and innovation on entrepreneurial success within emerging Middle Eastern economies. It further examines the moderating role of cultural support, assessing how societal norms and institutional expectations shape digital entrepreneurship, innovative behaviour, and the transition toward sustainable, knowledge-based economic systems. Design/methodology/approach A quantitative research design was applied using structured survey data from 305 entrepreneurs across diverse sectors in the Middle East. Validated measurement scales were employed to ensure reliability and construct validity. Structural equation modeling (SEM) was used to test the hypothesized relationships and evaluate the moderating effect of cultural support on the links between digital literacy, networking, knowledge sharing, innovation, and entrepreneurial success. Findings The results show that digital literacy and entrepreneurial networking significantly enhance knowledge sharing and innovation, which in turn improve entrepreneurial success. Cultural support, however, negatively moderates several relationships, indicating that traditional norms and institutional rigidities may constrain digitally driven entrepreneurial activity. Practical implications The findings highlight the need for policies that strengthen digital literacy, promote open innovation, and support sustainable technology adoption through inclusive and culturally adaptive entrepreneurial ecosystems. Originality/value The study contributes to entrepreneurship and digital transformation scholarship by applying Social Capital Theory to explain how digital competencies and networking interact with cultural dynamics, offering new evidence on sustainable entrepreneurship in rapidly modernizing Middle Eastern economies.

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