THE DIGITAL ENTREPRENEUR'S JOURNEY:FROM COMPETENCY DEVELOPMENT TO BEHAVIORAL OUTCOMES THROUGH MEDIATING PSYCHOLOGICAL FACTORS

Abstract

This study examines the relationship between digital competency and entrepreneurial behavior, with entrepreneurial alertness, intention, and passion as mediating variables. Grounded in Human Capital Theory, Theory of Planned Behavior, Affective Events Theory, and Alertness-Opportunity Recognition Theory, the research proposes a comprehensive model to explain how digital skills translate into entrepreneurial actions. Using a quantitative, cross-sectional design, data were collected from 450 university students in Gujranwala, Pakistan, through structured questionnaires. Validated scales measured digital competency, entrepreneurial alertness, intention, passion, and behavior. Data were analyzed using SPSS 28 and Hayes’ PROCESS macro for mediation analysis.Results supported all 10 direct hypotheses, revealing that digital competency significantly predicts entrepreneurial behavior (β = 0.21, *p* < 0.001) and has the strongest effect on entrepreneurial alertness (β = 0.49, *p* < 0.001). Entrepreneurial passion emerged as the most influential driver of behavior (β = 0.47, *p* < 0.001). All 11 mediation hypotheses were also supported, demonstrating significant indirect effects through alertness (β = 0.16), intention (β = 0.18), and passion (β = 0.14). Sequential mediation (digital competency → alertness → intention → behavior) further highlighted the cognitive-affective pathway (β = 0.12).The study contributes to entrepreneurship literature by integrating digital competency with established psychological constructs, offering a holistic framework for understanding entrepreneurial behavior in the digital age. Practical implications suggest that educators and policymakers should emphasize digital literacy programs to enhance entrepreneurial alertness, intention, and passion. Limitations include a region-specific sample and cross-sectional design, calling for future longitudinal and cross-cultural research. This research underscores the pivotal role of digital skills in fostering entrepreneurial success through cognitive and affective mechanisms.

Keywords: Digital Competency; Entrepreneurial Behavior; Entrepreneurial Alertness; Entrepreneurial Intention; Entrepreneurial passion.