Digital technology application, network strategy and opportunity recognition in Chinese entrepreneurial firms

Abstract

PurposeEntrepreneurial boundaries and activities have changed with the widespread use of digital technologies. However, few studies have examined DTA’s effect on opportunity recognition, leading to a vague understanding of this relationship.Design/methodology/approachBuilding on the digital entrepreneurship perspective, we explore the underlying mediating mechanism and contextual conditions in the relationship between digital technology application (DTA) and opportunity recognition using data from Chinese entrepreneurial firms.FindingsDTA positively affects opportunity recognition and network strategy mediates the relationship between DTA and opportunity recognition. Environmental uncertainty positively moderates DTA’s indirect effect on opportunity recognition through network strategies.Originality/valueOur findings contribute to digital entrepreneurship literature by explaining how DTA promotes entrepreneurial firms’ opportunity recognition through network strategies.