Characteristics, Categories, and Formation Mechanisms of Digital Entrepreneurs: An Exploratory Analysis in the Chinese Context

The large number of digital entrepreneurs in China provide innovative services and create a new competitive environment to enhance overall prosperity and well-being at both the local and national levels. This is an important research topic in the fields of management, economics, sociology, public administration, and digital entrepreneurship. Based on case studies of digital public services in China through in-depth interviews in 14 cities and counties across three provinces in northern, central, and southern China, we have analyzed the formation mechanisms, characteristics, and various categories of digital entrepreneurs in Chinese government departments.

Our research conclusions indicate that: digital entrepreneurs, comprising digital traits, innovative traits, entrepreneurial traits, and bureaucratic traits, serve as pivotal players in government digital innovation. Among these traits, the digital traits, which result in the various categorizations, emphasize an understanding of digital rules, a recognition of digital applications, and an ability to apply digital technology. The innovative traits focus on a forward-looking perspective and a sensitivity to capture various opportunities. The entrepreneurial traits highlight the ability to effectively make entrepreneurial innovations. The bureaucratic traits emphasize a proficiency to utilize bureaucratic paradigms to shape a digital innovation ecosystem, highlighting a passion for digital innovation and an ability to enable institutionalized cooperation among government, enterprises, the public, as well as other stakeholders. The variations in the characteristics of digital entrepreneurs can be traced back to three crucial mechanisms: power production, technology production, and mid-course exit. These have prompted digital entrepreneurs to form various digital innovation strategies that facilitate differentiated government-digital enterprise cooperation and digital innovation strategies.

On this basis, this article uncovers the theoretical implications and unique features of digital entrepreneurs, providing direct and detailed empirical evidence for the construction and validity of digital entrepreneur theory. The Chinese case demonstrates that the topic of digital entrepreneurs not only involves market governance issues but also governance and policy implications. Digital entrepreneurs play a crucial role in the design and provision of public services as well as in policy decision-making at the national level. Therefore, it is important to place an emphasis on digital entrepreneurs and the innovative digital ecosystem in which they serve as pivotal players and to define their roles and their behavioral incentives.