Abstract
Purpose
This study investigates the critical role of digital knowledge exchange through business and social networks in shaping entrepreneurial ecosystem factors and driving firm performance. It delineates how distinct patterns of digital knowledge interaction actively influence and sustain these ecosystems.
Design/Methodology/Approach
Grounded in network-based social capital theory and the knowledge-based view (KBV) of the firm, a conceptual model was developed and empirically tested using data from 12 regional ecosystems in Australia. The model was assessed using PLS-SEM via WarpPLS software.
Findings
The results provide compelling evidence that entrepreneurial ecosystem factors have a significant direct impact on firm performance. More importantly, this study reveals that the exchange of digital knowledge through business and social networks serves as a crucial mediating mechanism in this relationship, demonstrating that digital connectivity is not merely a support function but a core driver of ecosystem effectiveness.
Originality/Value
This research makes several significant contributions. First, it offers novel empirical evidence establishing the exchange of digital knowledge as a direct antecedent to firm performance, advancing the digital knowledge management literature. Second, it extends entrepreneurial ecosystem theory by demonstrating that ecosystem development is contingent upon robust digital knowledge sharing among entrepreneurs. Third, the findings carry important policy implications, suggesting that fostering high-level digital knowledge sharing mechanisms should be a priority for cultivating conducive entrepreneurial environments. Ultimately, this study positions the exchange of digital knowledge as an indispensable catalyst for both sustaining vibrant entrepreneurial ecosystems and achieving superior firm performance.