Predictor variables of students’ digital entrepreneurship competence and their structural equation model

Abstract

Digital entrepreneurship competency is a highly sought-after competency today, in line with the development of digital technology. However, so far, there has been little research on it. This study examines the dimensions of students’ digital entrepreneurship competency and its predictor variables, both internal and external. The research method used an explanatory research design. The sample comprised 350 students from universities in Java and outside Java in Indonesia through cluster random sampling. Questionnaires and document analysis served as data collection instruments and techniques. Data processing was carried out using descriptive statistics and structural equation modeling. The results of the study indicate that learning motivation and achievement are internal predictors of digital entrepreneurship competence, while learning facilities and the quality of the learning process are external predictors of digital entrepreneurship competence. Digital entrepreneurship competence is classified into two categories, namely digital entrepreneurship and digital business competence. The effect of learning facilities on digital business competence is greater than that of the learning process, whereas the effect of the learning process on digital entrepreneurship competence is greater than that of learning facilities. Motivation and achievement have comparable effects on digital entrepreneurship competence, whereas motivation exerts a stronger effect on digital business competence than achievement. There are both direct and indirect effects of learning facilities and the learning process on both digital entrepreneurship and digital business competence. The analysis of the findings shows that the characteristics of the variables are closer to the characteristics of students’ digital entrepreneurship competence.