Impacts of Digital Entrepreneurial Ecosystems on Sustainable Development: Insights from Latin America

Abstract

Digital Entrepreneurial Ecosystems (DEEs) are transforming the economic landscape through their integration of digital technologies, offering new opportunities for innovation and growth. This study explores the impact of DEEs on sustainable development, focusing specifically on Latin America. As DEEs continue to evolve, understanding their influence on economic, environmental, and social sustainability becomes crucial, particularly in a region characterized by significant developmental challenges. Utilizing a data panel from two different periods of analysis, from 2013 to 2017 and from 2018 to 2022, within the adapted DEE framework provided by the Global Entrepreneurship Development Institute (GEDI), we employ Principal Component Regression (PCR), Partial Least Squares Regression (PLSR), and fuzzy-set Qualitative Comparative Analysis (fsQCA 3.0) to analyze DEE components across 14 Latin American countries. These countries may not have the full spectrum of digital capabilities, yet they are still able to harness the digital elements they do possess effectively. This suggests that even partial digitalization, when strategically utilized, can lead to substantial gains in sustainable development. Additionally, Networking, Digital Protection, and Digital Tech Transfer are DEE components that present a higher magnitude in social, environmental, and economic development in Latin American countries. This study not only contributes to a deeper understanding of a DEE’s role in fostering sustainable development, but it also offers actionable insights for policymakers and entrepreneurs to leverage DEEs for broader societal benefits. The implications of the findings present perspectives under the existing literature, and the conclusion shows recommendations for future research and strategy development.