Digital Entrepreneurship in SMEs during Crisis: The Role of Entrepreneurial Orientation and Opportunity Evaluation

The primary goal of this study is to examine the association between entrepreneurship and digital entrepreneurship, while exploring the moderating roles of gain assessment, loss assessment, and perceived feasibility. Using the framework of Entrepreneurial Event Theory as a base, this study aims to explore how cognitive assessments affect the transition from entrepreneurial intent to action in a digital startup context within an emerging economy. A standardized questionnaire was administered to collect data from 200 digital entrepreneurs and startup professionals in Karachi, Pakistan. We tested the hypothesized relationships using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show the positive and significant impact of entrepreneurial orientation on digital entrepreneurship. Furthermore, gain assessment and perceived feasibility significantly moderate this relationship, such that the association between entrepreneurial traits and intentions is stronger when people perceive high incoming rewards and greater practical feasibility. In contrast, loss assessment does not significantly moderate the association between entrepreneurship orientation and digital entrepreneurship. This serves to prepare the stage for subsequent studies investigating the relationships between the online commerce entrepreneurial mindset and emotions, and the practical implications for policy, incubation, and capacity building within developing countries' digital startup ecosystems.