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Article

Towards Sustainable Digital Entrepreneurship: The Mediating Role of Entrepreneurial Self-Efficacy and the Moderating Influence of Social Support

by
Yaser Hasan Al-Mamary
1,*,
Aliyu Alhaji Abubakar
1 and
Fawaz Jazim
2
1
Department of Management and Information Systems, College of Business Administration, University of Ha’il, Hail 81451, Saudi Arabia
2
Department of English, College of Arts, University of Ha’il, Hail 81451, Saudi Arabia
*
Author to whom correspondence should be addressed.
Sustainability 2025, 17(23), 10499; https://doi.org/10.3390/su172310499 (registering DOI)
Submission received: 23 October 2025 / Revised: 16 November 2025 / Accepted: 21 November 2025 / Published: 24 November 2025
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Abstract

This study advances the literature on digital entrepreneurship by examining how Information Technology Culture (ITC) and Technology Orientation (TO) influence entrepreneurial intentions through the mediating role of Entrepreneurial Self-Efficacy (ESE) and the moderating role of Social Support (SS) within the context of Saudi Arabia’s Vision 2030. By integrating psychological, cultural, and technological constructs, the research offers a comprehensive framework for understanding the internal drivers of digital venture creation in youth. Data were collected via an online survey targeting Saudi youth and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Validated scales measured ITC, TO, ESE, SS, and Digital Entrepreneurship Intention (DEI), with a sample of 372 participants predominantly under age 30. Findings reveal that while ITC and TO do not directly predict DEI, both exert significant indirect effects through ESE, underscoring the central role of psychological self-belief in entrepreneurial motivation. The moderating effect of SS on the ESE–DEI relationship was non-significant, suggesting that internal efficacy may outweigh external validation in this context. The sample’s demographic skew90.9% male and 99.5% under 30limits generalizability, though it aligns with the most digitally active segment of the population. The cross-sectional design restricts causal inference, and future research should explore longitudinal and gender-balanced samples to validate and extend these findings. This study provides actionable insights for policymakers and educators aiming to foster digital entrepreneurship by enhancing ESE through targeted training, cultural alignment, and strategic technology exposure, especially among youth populations driving Saudi Arabia’s innovation agenda.

1. Introduction

Digital entrepreneurship functions as a primary economic force that drives innovation through its transformation of business operations in the modern digital environment. The exact reasons behind digital business start-ups, together with their launch methods, remain challenging to fully comprehend. The various elements that affect IT adoption include Information Technology (IT) Culture, which describes the shared organizational values and established norms and practices that shape technology usage patterns. The IT Culture determines how employees view technology because it establishes workplace environments, which promote startup development [1]. The cultural perspective receives backing from Technology Orientation (TO), which serves as a strategic driver to convert innovative ideas into sustainable digital businesses [2]. Adoption of digital technologies by SMEs for sustainability and value creation is mediated by the moderating role of entrepreneurial orientation. These constructs provide a basis to analyze the different factors which affect digital entrepreneurship intention.
The core psychological connection between technology elements and startup operations functions through Entrepreneurial Self-Efficacy (ESE). ESE functions as an individual belief system which enables them to start and run successful business ventures by linking the technological environment and their entrepreneurial actions [3]. People who possess strong ESE skills can use IT Culture and TO to achieve their goals because they convert their self-assurance into specific business plans. However, this mediating role is intricately influenced by TO, while Social Support (SS) moderates the strength of the relationship between ESE and entrepreneurial intentions. High TO combined with ESE produces an atmosphere that views technology as vital for business achievement, which fuels entrepreneurial motivation. Business success through technology tools becomes less significant when TO levels are low because it reduces employee perception of technology value in their work [4].
Academic research needs to study digital entrepreneurship because it functions as a leading economic development driver across the globe. Digital entrepreneurship generates various employment opportunities, which drive economic transformation by introducing new innovative solutions and diversifying regional economies during times of technological transition. Naudé [5] and Bedda et al. [6] report that digital entrepreneurship represents 40% of worldwide new business creation, while digital startups in emerging markets experience annual growth of 12%. The digital entrepreneurship market shows ongoing expansion, but new business founders encounter difficulties because their technology readiness and self-assurance levels vary. Research on IT Culture and Technology Orientation (TO) in relation to Entrepreneurial Self-Efficacy (ESE) addresses these challenges. Research shows that particular elements affect entrepreneurial intentions most strongly in technology-based environments, which experience the highest levels of innovation [7].

2. Literature Review

2.1. Determinants of Digital Entrepreneurship Intentions

The process of understanding digital entrepreneurship development requires researchers to examine three essential elements, which include Information Technology (IT) Culture, Technology Orientation (TO) and Entrepreneurial Self-Efficacy (ESE) [8,9]. The system contains elements that produce a dynamic outcome, which shows how people identify and react to sustainable digital business launch opportunities.

2.2. The Roles of Entrepreneurial Self-Efficacy and Social Support in Digital Entrepreneurship

Entrepreneurial Self-Efficacy (ESE) functions as a vital connection between technological elements and startup ambition by serving as a mediating factor in this complex system. As a psychological construct, ESE reflects an individual’s belief in their ability to initiate and successfully manage entrepreneurial ventures. An individual’s confidence enables the transformation of IT culture and Technology Orientation (TO) opportunities into concrete entrepreneurial intentions [10]. ESE functions as a connection point between technology elements and entrepreneurial conduct by showing people specific steps to achieve their targets.
Social Support (SS), serves as the moderating mechanism, shaping the ESE-entrepreneurial intentions relationship. High SS, when combined with ESE, results in enhanced outcomes because it provides emotional support, functional guidance and network capabilities which establish supportive environments that enhance entrepreneurial self-assurance. Such support strengthens self-belief and motivates risk-taking in venture pursuit. People experience social isolation, insufficient resources, and support to move forward, which leads to weaker ESE-entrepreneurial intentions when SS levels are low [11].
Therefore, the relationship that existed between ESE as a mediator and SS as a moderator underscores the intricate synergy required for entrepreneurial success. The correlations highlight the dual necessity of psychological readiness and a supportive technological orientation. Together, these factors create a fertile ecosystem where entrepreneurial outcomes are not only envisioned but also achieved.

2.3. Digital Entrepreneurship in Saudi Arabia

The Vision 2030 framework of Saudi Arabia enables researchers to study digital entrepreneurship through its distinctive framework. The Kingdom needs digital ventures to establish its non-oil sector because it has chosen to develop its economy through diversification and technological progress. Moshashai et al. [12] predicts that digital sector growth will exceed 1.86 trillion of Saudi Arabia’s GDP by 2030. Digital entrepreneurship adoption faces three main obstacles because of technological readiness gaps, cultural resistance to technology and insufficient self-confidence among entrepreneurs. The digital entrepreneurship ecosystem of Saudi Arabia shows promises because 63% of its population consists of people under 35 years old [13]. Nonetheless, Sengupta et al. [14] reports that Saudi youth participation in entrepreneurship remains low at 27–28% because they lack confidence in using technology for their business ventures.
The research combines IT Culture with TO and ESE to create a complete model, which assesses their joint impact on digital entrepreneurship intentions. The study provides practical recommendations for developing entrepreneurial aspirations through its analysis of ESE as a mediator and SS as a moderator.

3. Conceptual Framework

This theoretical framework examines how Information Technology Culture (ITC) and Technology Orientation (TO) influence Digital Entrepreneurship Intention (DEI), with Entrepreneurial Self-Efficacy (ESE) as a mediator and Social Support (SS) as a moderator. ITC, through its influence on technology attitudes and behaviors, enables people to discover market gaps which they can then use IT capabilities to exploit for entrepreneurial success. The technological environment that ITC and TO create supports entrepreneurial intentions in digital transformation settings [15,16].
The framework depends on Entrepreneurial Self-Efficacy (ESE) as its essential mediating element, which connects ITC and TO toward DEI. ESE represents the self-assurance people have about their entrepreneurial capabilities, which directly influences their readiness to launch digital businesses [17]. Research indicates that ESE benefits from high ITC and TO levels because these factors create an enabling technological environment, which makes digital entrepreneurship seem achievable and fulfilling to people [16].
Additionally, Social Support (SS) moderates these relationships by enhancing the impact of ITC and TO on DEI. The three components of SS, which include peer support, mentorship and professional network support, enable people to build confidence and develop resilience when dealing with entrepreneurial challenges [18]. Research by Wagner et al. [19] shows that people with strong social connections can use ITC and TO toward converting technological possibilities into actual business plans. The framework shows how psychological factors, technological progress and social frameworks work together to establish a successful digital entrepreneurial space, which provides critical information for policymakers, educators and practitioners who aim to build digital entrepreneurship programs in various contexts.
Based on the conceptual framework, the following hypotheses are proposed for the study:
H1: 
Information Technology Culture (ITC) positively influences Digital Entrepreneurship Intention (DEI) in Saudi Arabia.
ITC fosters a pro-technology mindset that aligns with Ajzen’s Theory of Planned Behavior, where shared organizational norms enhance perceived behavioral control and entrepreneurial attitudes, thereby increasing DEI [20]. The theoretical framework supports the hypothesis that Information Technology Culture (ITC) has a positive effect on Digital Entrepreneurship Intentions (DEI) because it creates an environment that supports digital literacy and technological adoption for entrepreneurial activities. The rapid digital infrastructure development in Saudi Arabia under Vision 2030 has created an environment where a strong ITC makes youth more familiar with and receptive to digital tools which motivates them to start their own businesses [21].
H2: 
Technology Orientation (TO) positively influences Digital Entrepreneurship Intention (DEI).
TO reflects a strategic capability under the Resource-Based View (RBV), enabling individuals to perceive digital ventures as feasible and attractive through innovation-driven competitive advantage [22,23,24]. The research suggests that Technology Orientation (TO) creates positive effects on DEI because organizations that adopt innovative technology strategies develop better perceptions about digital business feasibility and attractiveness [25]. The Saudi government supports technological progress through initiatives, which drive entrepreneurs to develop proactive technological approaches that align their business plans with national innovation targets.
H3: 
Entrepreneurial Self-Efficacy (ESE) mediates the relationship between Information Technology Culture (ITC), and Digital Entrepreneurship Intention (DEI) in Saudi Arabia.
According to Bandura’s Social Cognitive Theory, ITC enhances ESE by shaping mastery experiences and modeling behaviors, which in turn translate into stronger entrepreneurial intentions [26,27,28]. Extended social cognitive model explains pre-service teachers’ technology integration intentions with cross-cultural validity. The relationship between ITC and DEI is mediated by Entrepreneurial Self-Efficacy (ESE) because it determines how well people believe they can achieve success in digital business ventures according to Bandura’s Social Cognitive Theory [29]. The development of self-efficacy through technological culture leads to increased entrepreneurial intentions because Saudi Arabian entrepreneurs rely heavily on self-belief for taking risks.
H4: 
Entrepreneurial Self-Efficacy (ESE) mediates the relationship between Technology Orientation (TO) and Digital Entrepreneurship Intention (DEI) in Saudi Arabia.
TO cultivates strategic thinking and technological competence, which boosts ESE and facilitates the translation of perceived opportunity into entrepreneurial action, consistent with the Dynamic Capabilities Framework [30]. The strategic orientation towards technology serves as a mediator between TO and DEI because it enhances the confidence to perform digital entrepreneurial tasks, which leads to a sense of competence [31]. The rapidly changing digital landscape of Saudi Arabia benefits from improved strategic technological understanding, which boosts self-efficacy to motivate young people toward entrepreneurship.
H5: 
Entrepreneurial Self-Efficacy (ESE) positively influences Digital Entrepreneurship Intention (DEI) in Saudi Arabia.
T ESE directly predicts DEI as individuals with high self-belief are more likely to pursue entrepreneurial goals, a mechanism well-supported by Bandura’s theory of self-efficacy and its role in goal-directed behavior [26,27,32]. Hence, this study indicates that higher levels of ESE directly lead to DEI because people who feel confident about their entrepreneurial abilities tend to view digital entrepreneurship as both possible and fulfilling [32]. Self-efficacy functions as a fundamental psychological motivator for entrepreneurial intentions among Saudi youth, who are encouraged to create their own initiatives under Vision 2030.
H6: 
Social Support (SS) moderates the relationship between Entrepreneurial Self-Efficacy (ESE) and Digital Entrepreneurship Intention (DEI) in Saudi Arabia.
SS acts as a contextual buffer that strengthens the ESE–DEI link by providing emotional and instrumental resources, consistent with the Buffering Hypothesis and social support theory [33,34]. The relationship between ESE and DEI is hypothesized to be moderated by social support because social validation and emotional support are thought to either reinforce or diminish the confidence-behavior link [33,34]. In Saudi Arabia, where collectivist values influence decision-making, external social support could be expected to strengthen entrepreneurial intentions, though empirical evidence suggests its limited role in this context.
Therefore, these hypotheses collectively aim to explore the intricate relationships among ITC, TO, ESE, Social Support (SS), and DEI, providing a deeper understanding of the drivers of digital entrepreneurial intentions. The inclusion of ITC, TO, ESE, and SS as key constructs is grounded in their strong theoretical foundations within entrepreneurial and technology adoption frameworks, emphasizing how technological culture and strategic orientation influence individual perceptions of capability. The Saudi Arabian cultural environment requires these constructs to explain how internal psychological and external cultural factors drive digital entrepreneurship intentions by emphasizing confidence and technological readiness over external social validation. The combination of these constructs offers a comprehensive explanation of the diverse factors that motivate entrepreneurship in a region that promotes innovation through its distinctive cultural framework.

4. Methodology

The research methodology of this study involved the use of an online questionnaire to collect data from participants, primarily focusing on Saudi youth who represent the key demographic for assessing digital entrepreneurship intentions [35]. The online survey method allowed for efficient and broad data collection, aligning with the technologically adept characteristics of the target population. The questionnaire was structured to capture critical variables such as Information Technology Culture (ITC), Technology Orientation (TO), Entrepreneurial Self-Efficacy (ESE), Social Support (SS), and Digital Entrepreneurship Intention (DEI), with validated measurement scales ensuring the reliability and validity of the data collected. The study validated its questionnaire through the use of established measurement scales from previous research which confirmed both reliability and construct validity for ITC, TO, ESE, SS and DEI assessment [36]. The data collection process included an easily accessible online survey that measured Information Technology Culture, Technology Orientation, and entrepreneurial intentions through validated measurement scales from previous research. The established scales from previous studies provided a reliable method to measure the psychological and technological elements affecting digital entrepreneurship [36].
For sampling, convenient sampling was employed [37], enabling the researchers to collect data from easily accessible respondents familiar with digital technologies. While this non-probability sampling method may limit the generalizability of findings, it was suitable for the exploratory nature of the research [38] and the specific focus on a young, tech-savvy population in Saudi Arabia. The research results have limited generalizability because the study participants were chosen based on availability instead of random selection which produces findings that might not reflect the entire population [39]. Data analysis was conducted using Structural Equation Modeling (SEM) with Partial Least Squares (PLS) to test the relationships between constructs outlined in the conceptual framework (Figure 1). This approach facilitated the examination of both direct and mediated effects involving Information Technology Culture (ITC), Technology Orientation (TO), Entrepreneurial Self-Efficacy (ESE), Social Support (SS) on Digital Entrepreneurship Intention (DEI), supported by robust model assessment including reliability, discriminant validity, and hypothesis testing.

5. Results

5.1. Demographic Profiles of the Survey Participants

The demographic analysis in Table 1 reveals a distinct participant profile which provides important information about digital entrepreneurship in Saudi Arabia. The study shows that 90.9% of respondents identify as male which aligns with the gender imbalance that exists in regional entrepreneurship [40,41]. The current imbalance reveals cultural and societal factors that affect youth entrepreneurship participation because male youth show higher activity levels and accessibility in digital entrepreneurial activities. The age distribution shows a strong concentration with 99.5% of participants younger than 30 years old which makes this population suitable for studying technology-based entrepreneurial intentions.
The study benefits from a diverse educational composition of the sample which includes mostly bachelor’s degree holders (68%) and high school completers (30.1%) thus representing a well-educated population that can participate in technologically advanced entrepreneurial activities. The diverse educational backgrounds provide a detailed analysis of how educational levels affect technological preparedness and entrepreneurial self-assurance in digital entrepreneurship intentions. The study’s generalizability is further enhanced by the inclusion of different educational levels which provides practical implications for policymakers and educators who want to design interventions for different educational strata within the youth segment.
Hence, the demographic analysis not only provides a precise map of the participant landscape but also enhances the study’s relevance to the socio-economic realities of Saudi Arabia’s emerging digital entrepreneurship ecosystem.

5.2. Construct Validity and Reliability

The research model requires construct validity and reliability to ensure accurate measurement of its constructs. The Confirmatory Factor Analysis (CFA) method served to evaluate both convergent and discriminant validity [42]. The reliability assessment of the measurement model used Cronbach’s Alpha, Composite Reliability (CR) and Average Variance Extracted (AVE) which met Fornell and Larcker’s [36] criteria for internal consistency and convergence.

5.2.1. Convergent Validity and Reliability

The measurement model results in Table 2 demonstrate that all constructs meet the required standards for convergent validity and reliability. The items demonstrated suitable factor loadings greater than 0.70 which, confirmed their ability to measure their respective latent constructs [43]. The internal consistency of the measurement model reached acceptable levels because all Cronbach’s Alpha and Composite Reliability (CR) values surpassed 0.70 as defined by Nunnally & Bernstein [44]. The AVE values exceeded 0.50 for each construct, which indicates that the constructs explain more than half of the observed variance beyond measurement errors [36].
The measurement model demonstrates strong convergent validity and reliability through these results, which confirm that the constructs effectively measure their intended phenomena.
The assessment of construct validity and reliability for the main study variables appears in Table 2. The study examines Information Technology Culture (ITC), Technology Orientation (TO), Entrepreneurial Self-Efficacy (ESE), Social Support (SS), and Sustainable digital entrepreneurship Intention (DEI). The measurement items that make up each construct show strong factor loadings (FL) between 0.87 and 0.92 which demonstrates that the items strongly relate to their theoretical dimensions. The reliability metrics including Cronbach’s Alpha (CA) and Composite Reliability (CR-rho_a) are all above 0.94 which is well above the acceptable minimum threshold of 0.7, thus confirming that the constructs have an excellent internal consistency, meaning that the items within each construct consistently measure the same concept. The Average Variance Extracted (AVE) values are also notably high (around 0.79 to 0.82), which means that a substantial portion of the variance in each construct is explained by its items, thus further establishing convergent validity.
The thorough validation process enhances the study because it confirms that the used constructs demonstrate reliability and validity which increases the trustworthiness of the hypothesis testing analyses and structural modeling analyses. The identified relationships between constructs including the mediating effect of Entrepreneurial Self-Efficacy on ITC/TO and Sustainable digital entrepreneurship Intention become more accurate because reliable and valid measurement methods are used. The quality measurement scales validate the study’s results which demonstrate the critical role of IT culture and technology orientation and entrepreneurial self-efficacy in developing digital entrepreneurial intentions thus enhancing the confidence of scholars and practitioners and policymakers in using these findings to guide real-world applications in Saudi Arabia and other contexts.

5.2.2. Discriminant Validity

The Discriminant Validity assesses the degree to which the constructs in the study are distinct from each other, an important aspect to ensure that each construct is measuring a unique concept and not redundant. Table 3 presents the discriminant validity results based on the Fornell–Larcker criterion for the total sample.
The Fornell–Larcker criterion demands that the square root of Average Variance Extracted (AVE) for each construct exceeds its correlation coefficients with all other constructs [36]. The diagonal values in Table 3 represent the square roots of the Average Variance Extracted (AVE) for each construct, which are as follows: DEI = 0.898, ESE = 0.903, ITC = 0.891, SS = 0.907, and TO = 0.891. These values appear above the correlations between the variables.
The key criterion is that each diagonal value exceeds the corresponding correlations in its row and column. This is met with all constructs, indicating strong discriminant validity. This means that although the constructs are related as expected, given the theoretical framework they are sufficiently distinct to be treated as separate constructs rather than redundant measures. The study benefits from discriminant validity because it demonstrates that Information Technology Culture (ITC), Technology Orientation (TO), Entrepreneurial Self-Efficacy (ESE), Social Support (SS), and Sustainable digital entrepreneurship Intention (DEI) represent distinct aspects of the sustainable digital entrepreneurship ecosystem. The distinction enables researchers to conduct dependable tests of the proposed relationships and precise interpretation of mediating and moderating effects within the structural model. The study’s findings about how these constructs interact to shape digital entrepreneurial intentions in Saudi Arabia become more robust because the findings are not affected by measurement redundancy.

5.3. Measurement Model

The assessment of construct measurement and relationships demonstrated that Information Technology Culture (ITC) and Technology Orientation (TO) as independent variables (IVs) effectively affect ESE as the mediating variable which subsequently has a significant impact on DEI as the dependent variable (DV). The results show that ITC and TO do not directly affect sustainable digital entrepreneurship intentions but do so indirectly by increasing the confidence and belief of individuals in their entrepreneurial capabilities (ESE). The measurement model confirms this mediated pathway by showing that ESE is a reliable measure of the empowering psychological mechanism through which technological culture and orientation affect actual entrepreneurial intention.
The measurement model (Figure 2) incorporates Social Support (SS) as a moderator which is expected to either enhance or reduce the relationship between Entrepreneurial Self-Efficacy (ESE), and Sustainable digital entrepreneurship Intention (DEI). However, the results indicate that Social Support (SS) does not significantly moderate this relationship, which means that while social support is important for entrepreneurs in general, it may not amplify or reduce the effect of self-efficacy on digital entrepreneurial intention in this case.
Similarly, the measurement model in Figure 2 supports the theoretical framework by showing the essential mediating effect of Entrepreneurial Self-Efficacy (ESE) between technological factors (Information Technology Culture (ITC), Technology Orientation (TO) and Sustainable digital entrepreneurship Intention (DEI) and by showing that Social Support (SS) moderating effect is not supported in this sample. This refined understanding tells policymakers and practitioners that promoting entrepreneurial self-efficacy through cultural and technological means is essential for encouraging digital entrepreneurship, but enhancing social support may need different strategies to affect entrepreneurial intentions.

5.3.1. The R-Square Values

The study’s R-square values of 0.855 for Sustainable digital entrepreneurship Intention (DEI) and 0.815 for Entrepreneurial Self-Efficacy (ESE) in Table 4 show that the model has strong explanatory power which provides important insights into the predictors of sustainable digital entrepreneurship in Saudi Arabia and other technologically advancing economies. The values indicate that Information Technology Culture (ITC) and Technology Orientation (TO) together with the mediating effect of ESE are strong indicators of individuals’ readiness to engage in digital entrepreneurship, explaining 85.5% of the variance in Sustainable digital entrepreneurship Intention (DEI). The study results match recent research from the Middle East and worldwide which demonstrates that digital culture and self-efficacy play a crucial role in forming entrepreneurial behavior during the digital era [45].
The evidence supports the strategic value of developing digital competencies and entrepreneurial confidence among youth and aspiring entrepreneurs according to Saudi Arabia’s Vision 2030 which focuses on innovation-driven economic transformation [46,47].
The research findings have significant implications for other emerging economies across the Middle East, Asia and Africa because digital entrepreneurial ecosystems are now recognized as essential drivers of sustainable development and employment [48,49,50]. The research adds to worldwide discussions by demonstrating how cultural factors and technological elements and psychological factors combine to support digital economy entrepreneurship.

5.3.2. Importance-Performance Map

The Importance-Performance Map (IPMA) presented in Figure 3, offers a strategic visualization of how the study constructs Information Technology Culture (ITC), Technology Orientation (TO), Entrepreneurial Self-Efficacy (ESE), and Social Support (SS) contribute to Sustainable digital entrepreneurship Intention (DEI) in varying degrees of significance and effectiveness. Within the Saudi Arabian context, aligned with Vision 2030’s emphasis on innovation and entrepreneurship, the IPMA highlights ESE as a high-importance, high-performance construct, underscoring its central mediating role between ITC, TO, and DEI. The study confirms global research which shows that people’s belief in their entrepreneurial abilities stands as a fundamental factor for digital entrepreneurial activity [51,52]. The outcome establishes ESE as a fundamental area for policy and educational interventions in Saudi Arabia and other developing digital economies.
Furthermore, the analysis shows that ITC and TO have moderate to high importance, but their performance varies which indicates that there are strategic opportunities for governments and institutions in Saudi Arabia and across the Middle East to improve digital infrastructure and cultivate a stronger digital culture. The global trend of countries investing in technological readiness to support entrepreneurial ecosystems matches this finding [53,54]. The non-significant moderating role of Social Support (SS) indicates that it currently has less relevance or effectiveness in driving DEI, which suggests a need to re-examine how social capital and community-based interventions are organized within sustainable digital entrepreneurship programs.
The findings present essential information for policymakers and educators and stakeholders who want to enhance entrepreneurial conditions in Saudi Arabia and other developing economies. Therefore, stakeholders who want to position their economies for global sustainable growth through inclusive digital innovation should focus on developing targeted cultural and technological initiatives that enhance entrepreneurial self-efficacy and redesign social support systems [55].

5.4. Hypotheses Testing in Structural Model

The hypotheses testing in Table 5 reveal varying levels of influence among the studied constructs on Sustainable digital entrepreneurship Intention (DEI).
H1: Information Technology Culture (ITC) positively influences Digital Entrepreneurship Intention (DEI) in Saudi Arabia: ITC shows no significant direct effect on DEI (Std. Beta = 0.065, p = 0.197). This means that a general cultural familiarity or acceptance of IT tools does not necessarily mean that one will have entrepreneurial intentions in the digital space. The modernization of Saudi Arabia under Vision 2030 shows digital exposure is widespread but not internalized enough to drive individual entrepreneurial behavior [56]. Thus, while ITC is prevalent among Saudi youth, the study findings shows that it does not have the direct motivational force to trigger digital entrepreneurship without other reinforcing factors.
H2: Technology Orientation (TO) positively influences Digital Entrepreneurship Intention (DEI): TO shows no significant direct effect on DEI (Std. Beta = 0.091, p = 0.171). This means that even though people may have a strong inclination to adopt new technologies, this orientation alone is not a decisive factor in determining their entrepreneurial intentions in the digital domain. In the Saudi context, where technological infrastructure is robust, the challenge seems to be not in access or interest in technology but in translating this orientation into practical entrepreneurial behavior [57,58]. Therefore, TO needs to be complemented by psychological enablers to translate into intention [59].
Furthermore, the non-significant direct effects of ITC (H1) and TO (H2) on DEI appear because these variables show strong correlations yet their influence passes through Entrepreneurial Self-Efficacy (ESE) which makes ESE the primary factor influencing intention [33,34]. The Saudi environment shows that personal mental readiness leads to entrepreneurial behavior rather than external support systems so ITC and TO will improve DEI when people internalize these factors into their beliefs. The direct and indirect pathways occur because of the shared measurement between “intention” and “capability” and because people from various cultures understand these terms in different ways.
H3: Entrepreneurial Self-Efficacy (ESE) mediates the relationship between ITC and DEI in Saudi Arabia: The statistical analysis shows that Entrepreneurial Self-Efficacy (ESE) functions as a mediator between ITC and DEI (Std. Beta = 0.078, p = 0.012) which demonstrates that IT culture affects entrepreneurial intention through personal beliefs about entrepreneurial abilities. This means that self-belief stands as a key factor for utilizing technological culture to pursue entrepreneurial ventures. Therefore, the main factor for Saudi youth to start digital ventures is not their IT exposure but their ability to take action based on that exposure. ESE functions as a psychological link which connects environmental familiarity to entrepreneurial action.
H4: Entrepreneurial Self-Efficacy (ESE) mediates the relationship between TO and DEI in Saudi Arabia: The statistical analysis shows that ESE acts as a mediator between Technology Orientation and DEI (Std. Beta = 0.139, p = 0.019) which supports the idea that technological orientation needs to be combined with self-confidence to generate entrepreneurial intention. Young Saudis, who are digital natives, have potential through technology orientation but their belief in digital business creation and management and growth enables them to actualize this potential. The results demonstrate that educational and training programs should focus on teaching technology use alongside developing entrepreneurial self-efficacy.
H5: Entrepreneurial Self-Efficacy (ESE) positively influences Digital Entrepreneurship Intention (DEI) in Saudi Arabia: The research shows that Entrepreneurial Self-Efficacy has a direct and statistically significant relationship with DEI (Std. Beta = 0.235, p = 0.009). This shows that young people in Saudi Arabia who have an entrepreneurial mindset are more likely to engage in digital entrepreneurship. As entrepreneurship is now a strategic pillar under Saudi Arabian Vision 2030 [60,61]; thus, it’s important to build ESE among youth through mentoring, role models, and startup ecosystems. ESE can be a key policy tool to enhance entrepreneurial behavior among the digitally inclined youth of the Kingdom.
H6: Social Support (SS) moderates the relationship between ESE and DEI in Saudi Arabia: Social Support fails to demonstrate a significant effect on the relationship between ESE and DEI (Std. Beta = −0.006, p = 0.394). The non-significant moderation effect of Social Support (SS) on the ESE–DEI relationship could be due to the fact that SS was measured at a general level rather than at an entrepreneurial-specific level which is more relevant to venture creation contexts [62]. The results could have been affected by reduced statistical power because the interaction terms were not properly mean-centered or standardized. Young learners who study independently through online communities and self-directed learning allow their internal psychological ESE factors to guide their actions more than digital environment external validation. The study shows that self-efficacy does not change based on external social validation or approval when it comes to entrepreneurial intention. The Saudi youth tend to rely more on their internal confidence rather than external validation or encouragement when making entrepreneurial decisions [63]. The research shows that psychological elements within a person have a greater impact than social elements when it comes to encouraging digital business start-ups.

6. Discussion

The research identifies Information Technology Culture (ITC) and Technology Orientation (TO) as essential factors that determine Saudi Arabian digital entrepreneurship intentions according to its findings. The research shows that ITC and TO act as major factors that lead to entrepreneurial self-efficacy (ESE) which then enhances people’s intentions to start digital businesses. The hypotheses validate that ESE directly affects DEI in Saudi Arabia because youth need self-confidence to use technology for entrepreneurship. The mediating effect of ESE demonstrates how psychological factors link technological exposure and strategic orientation to actual entrepreneurial actions. The findings support Saudi Arabia’s Vision 2030 strategy by demonstrating how developing supportive cultural and technological environments can enhance digital entrepreneurship potential.
The research investigates how Social Support (SS) acts as a moderator between ESE and DEI while examining internal factors. The Saudi context shows that social support does not affect the relationship between ESE and DEI because young Saudi entrepreneurs rely more on their internal psychological drivers than external validation. The research discovers a distinctive cultural pattern in the region where personal motivation and self-assurance play a more important role than social approval for entrepreneurial choices. The research findings hold special importance for Middle Eastern policymakers and educators because the region prioritizes individual competence and self-belief in its cultural values. The focus on internal enablers supports the wider regional push to empower youth while dismantling social barriers that could limit entrepreneurial development.
Furthermore, the results of this research have implications for other countries in the Middle East and other emerging economies that are interested in developing digital entrepreneurship. The study’s validation of the impact of ITC and TO on entrepreneurial self-efficacy highlights the need to foster a technological culture and strategic technological mindset in order to promote innovation-driven startups. The understanding that internal psychological factors have a greater impact than external social influences enable the development of specific intervention strategies to enhance self-confidence in aspiring entrepreneurs. These findings enable countries with comparable demographic characteristics and digital environments to establish supportive environments for youth while improving technological capabilities and entrepreneurial self-efficacy which will drive regional economic diversification and technological advancement.
Research conducted in neighboring Gulf nations demonstrates that building entrepreneurial self-efficacy stands as a leading factor which drives digital startup development according to Saudi Arabian research. The United Arab Emirates conducted research which showed that entrepreneurship education programs enhance students’ ability to identify business opportunities and their entrepreneurial self-confidence thus supporting national diversification goals [64]. The research in the UAE found that educational institutions and institutional support between self-efficacy and cyber-entrepreneurial intentions increased while regional partnerships led to successful digital entrepreneurship environments [65].
This regional perspective makes the Saudi case even more compelling, as it shows that Gulf countries share similar cultural and technological contexts where self-efficacy consistently emerges as the cornerstone of entrepreneurial success.

7. Implications

7.1. Theoretical Implications

This research provides substantial theoretical contributions to understanding digital entrepreneurship drivers in Saudi Arabia and comparable regions of the Middle East and other developing economies. The study confirms that Entrepreneurial Self-Efficacy (ESE) acts as a mediator between Information Technology Culture (ITC) and Technology Orientation (TO) and entrepreneurial intentions which demonstrate the essential psychological elements in entrepreneurial processes. The analysis demonstrates that self-efficacy needs to be incorporated into models of entrepreneurship which combine technology and culture because current frameworks mainly focus on external factors. The integration of these elements creates a more complete understanding of how technological and cultural variables produce behavioral outcomes particularly in regions where cultural norms and psychological preparedness strongly affect entrepreneurial activity.
The study shows that ITC and TO have positive and mediating effects on entrepreneurial intentions which shows the importance of strategic technological environments and cultural attitudes toward technology within entrepreneurial theories. It highlights the dynamic correlations between technological readiness, strategic adoption, and individual belief systems, which contributes to a nuanced conceptual model tailored for the Middle Eastern context. The non-significant moderation of Social Support indicates that internal psychological factors may outweigh external social influences in these environments, challenging traditional social capital theories and prompting a reevaluation of their applicability in culturally specific regions. These insights can refine existing models by positioning psychological empowerment and technological culture as central components in fostering entrepreneurial activity.
The research results demonstrate sufficient grounds to create new entrepreneurial theories which focus on the combined effects of cultural elements and psychological factors and technological aspects. The research indicates that Saudi Arabia and its neighboring countries would benefit more from developing entrepreneurial self-efficacy through cultural and technological initiatives rather than focusing on social support enhancement. The new theoretical perspective provides guidance for developing specific interventions and policies and educational programs which establish conditions that support digital entrepreneurs. Higher educational institutions together with policymakers and development agencies should use this understanding of internal confidence as the primary factor to develop culturally appropriate frameworks that support sustainable entrepreneurial ecosystems in the Middle East and similar regions.
Furthermore, the research findings expand existing knowledge by moving away from studying external infrastructure and policy support to focus on entrepreneurial self-efficacy as the primary psychological factor which drives digital entrepreneurship in Saudi Arabia [66]. The conceptual framework presents a different approach than previous research because it shows how IT culture and technology orientation influence entrepreneurial intentions by affecting self-belief which represents a more detailed understanding of internal motivation. Thus, this study shows that youth empowerment through confidence development and technological readiness produces better sustainable business results than external factors do which supports Vision 2030 goals.

7.2. Practical Implications

The practical implications of this study emphasize the need for developing specific strategies that focus on increasing entrepreneurial self-efficacy among youth in Saudi Arabia and similar contexts. Policymakers and educators should focus on designing programs that enhance the confidence of aspiring entrepreneurs in their digital capabilities through mentorship, training, and exposure to successful role models. The study shows that entrepreneurship education which focuses on skill development and problem-solving and innovation helps build self-efficacy which the study identifies as a primary driver of entrepreneurial intentions. Such initiatives will help translate technological awareness and cultural openness toward entrepreneurship into tangible actions, thus accelerating the growth of the digital entrepreneurial ecosystem aligned with Vision 2030.
The research indicates that establishing an appropriate technological environment together with developing a positive IT culture represents essential practical actions. The public sector and private industry stakeholders need to dedicate resources toward enhancing digital infrastructure while making technology accessible and affordable and fostering an environment that supports innovation and risk-taking. Innovation hubs and incubators along with startup ecosystems function as platforms to develop technological mindsets which motivate youth to start and lead digital ventures. These measures will enable the conversion of technological familiarity into entrepreneurial activities, particularly when combined with programs that enhance self-belief and resilience in aspiring entrepreneurs.
The research shows that social support has a limited moderating effect so practical efforts should concentrate on internal motivation instead of depending on external validation or social encouragement. The development of psychological empowerment requires implementing resilience training and self-confidence workshops and entrepreneurial mindset development programs. Interventions that focus on internal enablers instead of external factors will be more effective in Saudi Arabia and other similar countries. These strategies will help in the development of a generation of self-driven digital entrepreneurs who can harness technological opportunities to support regional goals of economic diversification, innovation, and sustainable growth.
The research indicates that Saudi youth need entrepreneurial self-efficacy to develop sustainable digital business plans. Educational institutions need to create entrepreneurship programs which teach digital skills and provide students with practical experience and mentorship to learn business creation through technology applications. Startup initiatives should create incubators and accelerators which provide entrepreneurs with direct technology experience and entrepreneurial training and peer and mentor support to develop self-efficacy through hands-on business experience. Thus, universities need to establish entrepreneurship courses throughout their programs to establish digital venture creation as a fundamental practice while policymakers and ecosystem leaders need to establish collaborative spaces that link educational institutions with industrial partners and government agencies. Young people can establish environmentally friendly businesses which support Vision 2030 targets through educational programs that teach entrepreneurship skills and develop startup infrastructure.

8. Limitations & Directions for Future Research

The study faces a major limitation because it uses a cross-sectional design with convenience sampling which prevents researchers from establishing cause-and-effect relationships and limits the study’s generalizability to Saudi youth and other Middle Eastern nations. The convenience sampling approach might generate biased findings because it chose participants based on accessibility which might not reflect the complete population [37,38]. Future research needs to use stratified or probability-based sampling methods together with multilevel Structural Equation Modeling (SEM) to study intricate relationships in hierarchical data structures. The positive extension produces dependable results which maintain all beneficial aspects of the existing exploratory design.
The research sample contained mostly young males under thirty years old who made up 90.9% of participants thus potentially missing female and older demographic groups who also demonstrate entrepreneurial potential. Future research should use longitudinal studies and random sampling techniques to capture a more representative and dynamic picture of entrepreneurial intentions and behaviors over time, as well as explore gender-specific differences in the impact of technological and psychological factors. Although the research participants are 99.5% young males under thirty years old who make up 90.9% of the total study participants. The selected population matches the most innovative and digitally active youth segment in Saudi Arabia which supports Vision 2030’s youth innovation goals. The research becomes more relevant to the target population which will drive digital transformation, but additional studies need to include participants from various age groups and genders to confirm these results in different population segments.
Future research should investigate the cultural and contextual factors that influence the study’s results. The study delivers important findings about Saudi Arabia, yet cultural and social and economic elements differ substantially between the Middle East and other developing nations. Future research needs to study how cultural norms together with societal attitudes and institutional support systems affect the identified relationships, especially the mediating effect of ESE and the non-significant effect of social support. Research conducted across multiple nations with different socio-cultural environments helps determine if these results apply globally or need local modifications to enhance theoretical and practical knowledge about digital entrepreneurship in various contexts.
The research mainly examined psychological and technological factors that influence entrepreneurial intentions while other external factors received limited investigation [67]. Future research should broaden its scope by studying additional environmental factors which include financial resource availability and government policies and entrepreneurial ecosystems because these elements may affect individual self-efficacy and technological culture. The analysis of digital literacy together with entrepreneurial education quality and virtual networking opportunities would create a more complete understanding of the conditions that support digital entrepreneurship. The development of detailed intervention strategies and policy recommendations requires comprehensive insights into the specific needs and challenges of entrepreneurs in Saudi Arabia and the Middle East and other emerging markets.

9. Conclusions

The research shows that Information Technology Culture (ITC) and Technology Orientation (TO) function as vital factors that influence Saudi Arabian youth to start digital businesses. The relationship between technology exposure, cultural values and entrepreneurial behavior depends on Entrepreneurial Self-Efficacy (ESE), which functions as a psychological mechanism that transform these elements into actual entrepreneurial ventures. Research shows that ESE at specific stages leads to positive results for digital entrepreneurial intentions, which enables young people to develop their entrepreneurial competencies and boost their confidence. The model demonstrated an effective understanding of Saudi business operations, yet social support failed to create a meaningful connection between internal motivators and technological readiness for developing a digital entrepreneurial ecosystem that supports Vision 2030.
The research demonstrates that Saudi Arabia, together with other emerging markets, requires a comprehensive digital entrepreneurship promotion strategy that should establish technological infrastructure, align with cultural values, and support psychological development. The focus of policy interventions should be on developing entrepreneurial self-efficacy through specific educational programs, mentorship opportunities and successful role model exposure instead of relying on external social support systems. Through the combination of technological and psychological approaches, governments and stakeholders will enhance youth digital entrepreneurship potential, which leads to economic diversification and sustainable growth in both regional and global markets. The research provides critical direction for future investigations that seek to discover business prospects through the development of a technology-based economic system that enables sustainable growth.

Author Contributions

Conceptualization, Y.H.A.-M.; data curation, A.A.A., Y.H.A.-M. and F.J.; formal analysis A.A.A. and Y.H.A.-M.; funding acquisition, F.J.; investigation, A.A.A., Y.H.A.-M. and F.J.; methodology, A.A.A. and Y.H.A.-M.; project administration, F.J.; resources, A.A.A., Y.H.A.-M. and F.J.; software, A.A.A. and Y.H.A.-M.; supervision, Y.H.A.-M.; validation, A.A.A., Y.H.A.-M. and F.J.; visualization, A.A.A., Y.H.A.-M. and F.J.; writing—original draft, A.A.A., Y.H.A.-M. and F.J.; writing—review and editing, A.A.A., Y.H.A.-M. and F.J. All authors have read and agreed to the published version of the manuscript.

Funding

This research has been funded by the Deputy for Research & Innovation, Ministry of Education, through the Initiative of Institutional Funding at the University of Ha’il, Saudi Arabia, through project number IFP-22 221.

Institutional Review Board Statement

This study has been reviewed and approved by the Research Ethics Committee (REC) of the University of Hail (approval date: 21 April 2025, No. H-2025-765).

Informed Consent Statement

Informed consent was obtained from all participants before the data were collected. We informed each participant of their rights and the purpose of this study while safeguarding their personal information.

Data Availability Statement

The data presented in this study are available upon request from the corresponding author due to privacy restrictions.

Conflicts of Interest

The authors declare no conflicts of interest.

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Sustainability 17 10499 g001
Figure 1. Conceptual Framework.
Figure 1. Conceptual Framework.
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Figure 2. Measurement Model. Information Technology Culture (ITC), Technology Orientation (TO), Entrepreneurial Self-Efficacy (ESE), Social Support (SS) and Sustainable digital entrepreneurship Intention (DEI).
Figure 2. Measurement Model. Information Technology Culture (ITC), Technology Orientation (TO), Entrepreneurial Self-Efficacy (ESE), Social Support (SS) and Sustainable digital entrepreneurship Intention (DEI).
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Figure 3. Importance- performance Map. Information Technology Culture (ITC), Technology Orientation (TO), Entrepreneurial Self-Efficacy (ESE), Social Support (SS) and Sustainable digital entrepreneurship Intention (DEI).
Figure 3. Importance- performance Map. Information Technology Culture (ITC), Technology Orientation (TO), Entrepreneurial Self-Efficacy (ESE), Social Support (SS) and Sustainable digital entrepreneurship Intention (DEI).
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Table 1. Demographical Analysis.
Table 1. Demographical Analysis.
GenderScaleFrequencyPercent
Male33890.9
Female349.1
Total372100
EducationScaleFrequencyPercent
Diploma after Higher School51.3
Higher School11230.1
Bachelor25368
Postgraduate20.5
Total372100
AgeScaleFrequencyPercent
Less than 3037099.5
31–4020.5
Total372100
Table 2. Construct Validity and reliability.
Table 2. Construct Validity and reliability.
S/nConstructsItemsFLCACR (rho_a)AVE
1Information Technology Culture (ITC)ITC10.8837760.9479680.9484840.793518
ITC20.891991
ITC30.894797
ITC40.89132
ITC50.894061
ITC60.888787
2Technology Orientation (TO)TO10.8726610.9478680.9495480.793554
TO20.901727
TO30.907919
TO40.854209
TO50.91418
TO60.892726
3Entrepreneurial Self-Efficacy (ESE)ESE10.9099780.9546730.955430.81539
ESE20.907409
ESE30.907295
ESE40.923928
ESE50.887712
ESE60.880926
4Social Support (SS) SS10.8810450.9565950.9569130.821868
SS20.914868
SS30.904748
SS40.921522
SS50.89626
SS60.920289
5Sustainable digital entrepreneurship Intention (DEI)DEI10.8767070.9516590.9522980.805661
DEI20.909262
DEI30.904827
DEI40.913206
DEI50.913824
DEI60.866523
Factor Loadings (FL) Cronbach’s Alpha (CA), Composite Reliability (CR rho_a), Average Variance Extracted (AVE).
Table 3. Discriminant validity of the total sample (Fornell–Larcker criterion).
Table 3. Discriminant validity of the total sample (Fornell–Larcker criterion).
DEIESEITCSSTO
DEI0.897586
ESE0.809630.90299
ITC0.8202360.8287740.890796
SS0.8110370.8126080.8260710.906569
TO0.8409550.8321590.8103390.8489640.890817
Information Technology Culture (ITC), Technology Orientation (TO), Entrepreneurial Self-Efficacy (ESE), Social Support (SS) and Sustainable digital entrepreneurship Intention (DEI).
Table 4. R-square.
Table 4. R-square.
S/nItemsR-Square
1DEI0.854601398
2ESE0.814656171
Table 5. Hypotheses Testing in Structural Model.
Table 5. Hypotheses Testing in Structural Model.
S/nRelationshipStd. BetaStd. Dev(t-Values)p-ValuesFindings
H1ITC -> DEI0.0650.0760.8520.197Not Supported
H2TO -> DEI0.0910.0960.9500.171Not Supported
H3ITC -> ESE -> DEI0.0780.0342.2560.012Supported
H4TO -> ESE -> DEI0.1390.0672.0830.019Supported
H5ESE -> DEI 0.2350.1002.3620.009Supported
H6SS x ESE -> DEI−0.0060.0230.2700.394Not Supported
Information Technology Culture (ITC), Technology Orientation (TO), Entrepreneurial Self-Efficacy (ESE), Social Support (SS) and Sustainable digital entrepreneurship Intention (DEI).
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MDPI and ACS Style

Al-Mamary, Y.H.; Abubakar, A.A.; Jazim, F. Towards Sustainable Digital Entrepreneurship: The Mediating Role of Entrepreneurial Self-Efficacy and the Moderating Influence of Social Support. Sustainability 2025, 17, 10499. https://doi.org/10.3390/su172310499

AMA Style

Al-Mamary YH, Abubakar AA, Jazim F. Towards Sustainable Digital Entrepreneurship: The Mediating Role of Entrepreneurial Self-Efficacy and the Moderating Influence of Social Support. Sustainability. 2025; 17(23):10499. https://doi.org/10.3390/su172310499

Chicago/Turabian Style

Al-Mamary, Yaser Hasan, Aliyu Alhaji Abubakar, and Fawaz Jazim. 2025. "Towards Sustainable Digital Entrepreneurship: The Mediating Role of Entrepreneurial Self-Efficacy and the Moderating Influence of Social Support" Sustainability 17, no. 23: 10499. https://doi.org/10.3390/su172310499

APA Style

Al-Mamary, Y. H., Abubakar, A. A., & Jazim, F. (2025). Towards Sustainable Digital Entrepreneurship: The Mediating Role of Entrepreneurial Self-Efficacy and the Moderating Influence of Social Support. Sustainability, 17(23), 10499. https://doi.org/10.3390/su172310499

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