Identifying institutional voids in the development of digital entrepreneurship in the context of online shopping platforms

Objective: The primary objective of this research is to identify and analyze the institutional voids that affect the development of digital entrepreneurship within the context of online shopping platforms in Iran. Institutional voids are defined as gaps in formal and informal structures, such as laws, regulations, social norms, and economic infrastructures, that can either hinder or facilitate entrepreneurial activities. This study seeks to understand how these voids impact the behavior and performance of digital entrepreneurs, particularly in the realm of e-commerce platforms.

The focus of this research is on identifying factors such as legal weaknesses, lack of technological infrastructure, limitations in access to financial resources, and cultural-social barriers that can obstruct the growth of digital businesses. Furthermore, this study aims to provide solutions for improving the digital entrepreneurship ecosystem by examining these voids, which can assist policymakers, platform managers, and entrepreneurs in strengthening this domain. This research is particularly significant in emerging markets like Iran, which face unique institutional and economic challenges, and it seeks to contribute new insights to the existing literature on digital entrepreneurship and institutional theory.

Method: This research is qualitative in nature and was conducted with the aim of identifying institutional voids affecting the development of digital entrepreneurship within the context of online shopping platforms in Iran. Data were collected through semi-structured interviews with 12 digital entrepreneurs, who were selected using a snowball sampling method to achieve theoretical saturation. The data were analyzed using thematic analysis based on the approach of Braun and Clarke (2006). This method involved manual coding, categorizing codes, and extracting main and sub-themes, resulting in the identification of 9 main themes and 42 sub-themes related to institutional voids. To ensure validity, the researcher triangulation method and expert validation of codes were used. Reliability was also calculated using inter-coder agreement between two coders, which showed a reliability percentage of 82%. The interviews were recorded with the informed consent of the participants, and their identities were kept confidential to maintain anonymity. The thematic analysis provided an accurate identification of institutional challenges and offered deep insights into the barriers to digital entrepreneurship.

Results: This study identified institutional voids affecting the development of digital entrepreneurship on online shopping platforms in Iran across three dimensions: regulatory, cognitive, and normative. These voids were categorized into three main groups:

1. Legal and Regulatory Voids: These include a lack of clear laws regulating e-commerce activities, absence of legal frameworks to protect intellectual property rights, tax and licensing issues, legal ambiguities, bureaucratic obstacles, monopolization by large companies, lack of tax transparency, and policymakers’ unawareness of digital needs (with 8 sub-themes for Rule of Law Voids, 3 sub-themes for competition and monopoly, 9 sub-themes for government policies and administrative procedures, and 4 sub-themes for political distance).

2. Infrastructural and Technological Voids: These involve low internet speed, limited access to advanced technologies, problems with online payment systems, shortage of skilled professionals, weak technical infrastructure, and lack of expertise among policymakers (with 4 sub-themes for lack of literacy and skills, 3 sub-themes for technological complexity, and 4 sub-themes for cognitive distance).

3. Cultural and Social Voids: These include cultural resistance to online shopping, lack of public trust in digital platforms, weak digital skills among consumers and entrepreneurs, bribery, and lack of administrative transparency (with 3 sub-themes for lack of transparency and corruption, and 4 sub-themes for cultural and social barriers).

These voids not only affect the performance of platforms but also influence entrepreneurs’ behavior and strategic decision-making, leading some entrepreneurs to rely on informal networks and personal relationships to fill these gaps. These challenges increase transaction costs, reduce trust, and limit innovation, thereby hindering the growth of digital entrepreneurship.

Conclusion: This study identified key institutional voids that impact digital entrepreneurship within online shopping platforms in Iran. Utilizing thematic analysis of interviews with digital entrepreneurs, the research revealed significant challenges across three dimensions. Regulatory voids, such as ambiguous laws and bureaucratic hurdles, increase transaction costs and reduce entrepreneurs’ confidence. Cognitive voids, including a lack of digital skills and inadequate technological infrastructure, limit the exploitation of digital opportunities. Furthermore, normative voids, like social resistance to digital businesses and corruption, undermine public trust and operational efficiency. Collectively, these voids hinder the growth and sustainability of digital entrepreneurship in the studied context. The findings underscore the necessity of targeted institutional reforms to foster a supportive environment for digital entrepreneurs.

Keywords: Institutional voids, digital entrepreneurship, online shopping platforms, thematic analysis