Heliyon (Oct 2024)
Impact of ICT diffusion and opportunity entrepreneurship on environmental sustainability in Saudi Arabia
Abstract
The need to prioritize sustainable development is expanding in light of the world's environmental concerns. To address these concerns, entrepreneurship is essential as a catalyst for inventions, economic expansion, and social change. Entrepreneurship activities have direct and indirect effects in the face of environmental risks and uncertainties. This study addresses gaps in understanding entrepreneurship's non-linear and complementarity effects, particularly opportunity-driven entrepreneurship and information and communication technologies (ICT), on the quality of the environment in Saudi Arabia. The dynamic ordinary least squares (DOLS) method is used to estimate long-run relationships. Saudi Arabia will be the perfect context for sustainability because the country has prioritized sustainability through its Vision 2030, and the Saudi government has substantially supported entrepreneurship. The main contribution of this paper to the existing literature is evident in its examination of the quadratic relationships between both opportunity-driven entrepreneurship and ICT diffusion, including ICT access, use, and skills, on environmental quality. In addition, the study delves into the ICT diffusion's modulating effects on the nexus of opportunity entrepreneurship with environmental quality, providing insights into how these factors can effectively improve environmental quality. The findings show that opportunity entrepreneurship and ICT diffusion initially deteriorate environmental quality before leading to improvements as their levels mature in the economy. Moreover, interactions between ICT proxies and opportunity entrepreneurship yield mixed effects, with negative net effects on CO2 emissions and ecological footprint countered by positive net effects on the environmental performance index. These findings highlight the dual role of ICT diffusion as a contributor to environmental challenges and a potential solution, depending on the level of its diffusion and interaction with entrepreneurial activities. Therefore, policymakers should create plans that encourage and direct business activity toward more environmentally friendly methods. They should also consider the short- and long-term effects of growing digital technologies on environmental sustainability and how they might revolutionize how entrepreneurship and sustainability goals are aligned.
