Digital Entrepreneurship Ecosystems and SME Competitiveness: The Moderating Role of Institutional Support

Abstract

This study investigates the influence of digital entrepreneurship ecosystems (DEE) on the competitiveness of small and medium-sized enterprises (SMEs) and examines the moderating role of institutional support. Drawing on survey data collected from 350 SMEs in Pakistan across manufacturing and service sectors, the study employs Partial Least Squares Structural Equation Modeling (PLS-SEM) to empirically test the proposed conceptual framework. Results indicate that DEE significantly enhances SME competitiveness, and this relationship is strengthened when institutional support, including regulatory clarity, financial incentives, and entrepreneurial training programs, is high. The study contributes to theory by integrating ecosystem and institutional perspectives and offers actionable insights for SME managers and policymakers seeking to leverage digital entrepreneurship for sustainable growth.