How Do Digital Capabilities Impact the Sustained Growth of Entrepreneurial Income: Evidence from Chinese Farmer Entrepreneurs

Abstract

The application of digital technology in China’s rural areas has triggered a brand-new allocation of agricultural factors, posing challenges to the sustainable growth of entrepreneurial income. Using empowerment theory and entrepreneurial process theory, this paper explores the mediating role of entrepreneurial alertness and resource bricolage in the relationship between digital capabilities and the sustainable growth of entrepreneurial income. Using questionnaire survey data from 490 farmer entrepreneurs in China, this paper empirically tests the effect of digital capabilities on the sustainable growth of entrepreneurial income through a multiple regression model. The findings show that: (1) digital capabilities have a significant positive effect on the sustainable increase in entrepreneurial income; (2) digital applicational capabilities and digital innovation capabilities can affect the sustainable increase in entrepreneurial income through the intermediary paths of entrepreneurial alertness and resource bricolage; and (3) digital capabilities have a more significant positive impact on the sustained growth of entrepreneurial income for young farmers and those with professional work experience in large cities who embark on farming entrepreneurship. This paper reveals the effect of digital technology when embedded in the entrepreneurial process. It also provides a theoretical reference and empirical support for the government to formulate reasonable entrepreneurial policies and offers new paths and solutions to promote sustainable entrepreneurial development through digital capabilities.