The Impact of Entrepreneurial Motivations on the Digitalization of Established Businesses in the MENA Selected Countries: evidences based on Global Entrepreneurship Monitor Data

Document Type : Research Paper

Authors

1 Department of Corporate Entrepreneurship, Faculty of Entrepreneurship, University of Tehran, Tehran, Iran

2 Department of Technological Entrepreneurship, Faculty of Entrepreneurship, University of Tehran, Tehran, Iran

10.22059/jed.2026.396512.654535

Abstract

Objective: The purpose of this study is to evaluate the impact of different types of entrepreneurial motivations on the digitalization of established businesses in selected MENA countries. Furthermore, by incorporating the variable “sustainability orientation”, the study examines a new relationship among these three variables. In fact, digitalization and sustainability orientation interact and are best studied as related phenomena. This study shows whether the relationship between the four entrepreneurial motives and digitalization in established businesses in selected MENA countries is moderated by entrepreneurs’ sustainability orientation. Finally, given that digitalization as a type of entrepreneurial action is inherently dependent on the economic and social context of society, and this context can be weak or strong in different countries, this study examines the differences in the impact of different types of entrepreneurial motives on the digitalization of established businesses separately in selected MENA countries.



Method: This research adopts an analytical-correlational design with a quantitative approach. To test the research hypotheses, a multiple regression technique has been employed. The statistical population consists of established entrepreneurs who participated in the 2022 international Global Entrepreneurship Monitor (GEM) survey in selected MENA countries, including Saudi Arabia, the United Arab Emirates, Egypt, Qatar, Oman, Iran, Morocco, and Tunisia (sample size: 1,414). In addition, the “country” variable was entered into the regression models as a dummy variable, allowing for cross-country comparisons. However, for the multi-items variable of " sustainability ", the Composite Reliability (CR) method was also used along with Cronbach's alpha method . On the other hand, two types of validity (convergent validity and divergent validity) were examined in this study. One of the important indicators in assessing convergent validity is the Average Variance Extracted (AVE). While, to examine divergent validity, The Heterotrait-Monotrait ratio of correlations (HTMT) was used, which was introduced as a new criterion by Hensler, Ringel, and Sarstedt in 2015. This index is constructed based on the average correlation between different indices. Finally, in this study, two indices of tolerance and Variance Inflation Factor) VIF) were used to assess Collinearity Statistics between independent variables.



Results: The results of the multiple regression analysis show that the motivations of “making a difference in the world” and “To build great wealth or very high income” are the main drivers of digital technology adoption in established businesses in the selected MENA countries. In contrast, the motivation of “To continue a family tradition” and the motivation of “To earn a living because jobs are scarce” have no significant impact on digitalization in these businesses across the studied countries. Moreover, while sustainability directly exerts a positive effect on the digitalization of established businesses in MENA, its interaction with the motivations of “making a difference in the world” and “To build great wealth or very high income” reduces this effect. The findings further reveal that these two motivations have the weakest impact on digitalization in Iran and the strongest impact in Qatar, compared to Saudi Arabia as the reference country.



Conclusion: The study indicates that established MENA entrepreneurs motivated by “making a difference in the world” are more likely to digitalize their businesses. Similarly, since digitalization enhances efficiency, profitability, and reduces operational costs, established MENA entrepreneurs motivated by “increasing wealth or income” also tend to adopt digital technologies. However, the findings also highlight that MENA entrepreneurs are not necessarily willing to adopt digital technologies at any cost.

According to the sustainability orientation paradox—identified as the most important innovative contribution of this study—MENA entrepreneurs motivated by “making a difference in the world” and “increasing wealth or income” who also demonstrate a stronger sustainability orientation, tend to pursue less digitalization in their businesses. In fact, the negative consequences of excessive digitalization, such as higher energy consumption and the generation of electronic waste, discourage such entrepreneurs from further adoption of digital technologies.

In addition, the results show that, compared to the reference country (Saudi Arabia), the level of digitalization in established businesses in Iran, Tunisia, Morocco, the UAE, and Qatar is lower. For instance, the level of digitalization in Iran is significantly lower than in Saudi Arabia, indicating a serious challenge in cultural adoption and digital infrastructure in the country.

Implications:

Based on these findings, it is recommended that policymakers, entrepreneurship development institutions, innovation centers, and universities in the MENA region place greater emphasis on identifying, supporting, and encouraging entrepreneurs motivated by “making a difference in the world” and “increasing wealth or income”. Furthermore, the promotion of digital entrepreneurship education with a stronger sustainability orientation should be given higher priority in policy and practice.

Keywords

Main Subjects

References

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