Solehudin Solehudin

Techno-Entrepreneurship in Developing Countries: Bridging Innovation and Inclusive Growth

Introduction

Techno-entrepreneurship in developing countries: bridging innovation and inclusive growth. Techno-entrepreneurship in developing countries drives inclusive growth. Explore how digital capabilities, financial inclusion, and policies foster innovation for equitable, sustainable development.

Abstract

Digital transformation in developing countries opens up new opportunities for technology-based entrepreneurship, but the benefits are not fully inclusive due to the digital divide, limited access to finance, and varying quality of infrastructure. This research aims to analyze how techno-entrepreneurship can bridge innovation and inclusive growth by examining the role of digital capabilities, digital financial inclusion, as well as the moderation of digital public infrastructure and pro-inclusive policies. The method used is mixed-methods with a sequential explanatory design. Quantitative data was collected through a survey of 300 technology-based MSME actors and analyzed using SEM-PLS, while qualitative data was obtained through in-depth interviews and FGDs to enrich the interpretation of the results. The findings show that digital capabilities have a significant effect on inclusive growth (B=0.47, p<0.01), while digital financial inclusion plays a role as a partial mediator (B=0.21, p<0.05). The analysis also confirms that digital public infrastructure and pro-inclusive policies strengthen the link between digital capabilities and inclusive growth outcomes. The integration of qualitative data supports quantitative outcomes, with empirical evidence that digital literacy, fintech access, and policy support are key to expanding the impact of techno-entrepreneurship. The implications of this study emphasize the need for a multi-level strategy that connects micro, meso, and macro aspects in order for digitalization to truly drive equitable, participatory, and sustainable economic growth in developing countries.

Review

This paper addresses a highly pertinent and critical topic: the role of techno-entrepreneurship in fostering inclusive growth within developing countries amidst the ongoing digital transformation. The authors clearly articulate the challenges, such as the digital divide and limited access to resources, that often impede equitable benefits from technological advancements. By aiming to analyze how techno-entrepreneurship can bridge innovation and inclusive growth through digital capabilities, digital financial inclusion, and the moderation of digital public infrastructure and pro-inclusive policies, the study sets a clear and ambitious objective. This research promises a significant contribution to understanding the complex interplay between technology, entrepreneurship, and development policy in contexts where such insights are urgently needed. The methodology employed is robust and well-suited to the research questions, utilizing a sequential explanatory mixed-methods design. The quantitative phase, involving a survey of 300 technology-based MSME actors analyzed with SEM-PLS, provides a solid statistical foundation. Key findings from this analysis indicate that digital capabilities have a significant direct effect on inclusive growth, while digital financial inclusion plays a crucial mediating role. Furthermore, the study effectively demonstrates that digital public infrastructure and pro-inclusive policies strengthen these positive linkages, acting as vital moderators. The integration of qualitative data through in-depth interviews and FGDs effectively enriches the interpretation, confirming that practical elements like digital literacy, fintech access, and robust policy support are fundamental drivers. The implications of this research are substantial and extend beyond academic understanding, offering actionable insights for policymakers and practitioners. By emphasizing the necessity for a multi-level strategy that integrates micro, meso, and macro aspects, the study provides a comprehensive framework for leveraging digitalization to achieve equitable, participatory, and sustainable economic growth in developing countries. The clear articulation of the roles of digital capabilities, financial inclusion, and supportive infrastructure and policies offers valuable guidance for designing targeted interventions. Overall, this paper makes a strong contribution by systematically unpacking the mechanisms through which techno-entrepreneurship can genuinely foster inclusive growth, making it a highly relevant and impactful piece of work.

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