The Impact Of Digital Entrepreneurshp On Firm Performance: Mediating Role Of Organisational Agility And Moderating Effect Of Digital Literacy

Abstract

Due to shifting consumer behaviour, rising internet usage, and advancements in technology, digital business has grown significantly in recent years. It provides individuals with the opportunity to turn their ideas into profitable businesses, upending existing marketplaces and promoting the digital economy. Organisations must embrace digital business practices, which include focusing on meeting customer needs as efficiently as possible and consistently and responsibly utilising digital technology in operations that change business models generally and organisational structures, organisational culture, processes, and products. Thus, the goal of this research was to investigate, through controlled samples, how digital entrepreneurship affects firm Performance. The researcher examine how digital entrepreneurship directly affects business performance in addition to the mediating and moderating functions that organisational agility and organisational digital literacy play. Based on previously published literature, the researcher developed three hypotheses and a conceptual framework to guide the investigation. This work adheres to positivist epistemology. The study collected data online using a structured questionnaire and a comparative technique using a quantitative research design. Research data came from 240 middle and senior managers in various sectors in Ghana. The collected data was retrieved from Google Forms and then imported into Microsoft Excel. Following that, it was put into SPSS version 28 for primary analysis, and Amos was used to do SEM analysis. The study's findings showed a statistically significant and positive relationship between digital entrepreneurship and business performance. Furthermore, it has been established that organizational agility completely mediates the relationship between digital entrepreneurship and business performance. The researcher was surprised to find that the degree of organizational digital literacy had no bearing on the strength of the correlation between digital entrepreneurship and firm performance. Based on these findings, it is recommended that firms invest in enhancing their organizational agility and digital literacy to maximize the benefits of digital entrepreneurship. Training programs and supportive digital infrastructures should be prioritized to empower employees and strengthen the overall performance within the company. The study recommends that Future research could investigate the role of other organizational factors in moderating the relationship between digital entrepreneurship and firm performance and also on the viability of digital firms in Ghana.