An Empirical Study on Digital Entrepreneurial Intentions Among Generation Z in Malaysia

Chin, Mun Hong (2025) An Empirical Study on Digital Entrepreneurial Intentions Among Generation Z in Malaysia. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

Text 18 Chin Mun Hong (MBA).pdf Restricted to Registered users only Download (5MB)

Abstract

In the rapidly evolving digital economy, Generation Z (Gen Z) (born 1997–2012) holds significant entrepreneurial potential due to their digital literacy and technological exposure. As digital natives, Gen Z is uniquely positioned to leverage emerging technologies, such as AI-driven tools like ChatGPT, to innovate and disrupt traditional business models. However, despite being digital natives, many Gen Z individuals in Malaysia face challenges in utilising these technological advancements in sustainable entrepreneurial ventures. This gap suggests that digital proficiency alone is insufficient to foster entrepreneurial success, and it must be complemented by cognitive, strategic, and environmental factors. In this case, this study seeks to assess the critical determinants influencing Digital Entrepreneurial Intention among Malaysia's Gen Z population, addressing an important research gap where Malaysian Gen Z is still underutilising AI tools, which undermines entrepreneurial intention and opportunity recognition. Aside from digital tools adoption, this study provides an in-depth, comprehensive analysis of how individuals’ differences in terms of cognitive capabilities, entrepreneurial knowledge and other external factors, such as the availability of information in the digital platform, shape their ability to recognise digital entrepreneurial opportunities. Therefore, this study aims to examine the determinants of digital entrepreneurial intention (DEI) among Malaysian Gen Z, focusing on the roles of ChatGPT adoption, strategic foresight, message transparency, network translucence, opportunity recognition, and digital technology self-efficacy (DTSE). Grounded in an integrated theoretical framework comprising the Technology Acceptance Model (TAM), Strategic Foresight Framework, Theory of Communication Visibility, Social Cognitive Theory, and the Theory of Entrepreneurial Opportunity Identification and Development, this study investigates how cognitive, technological, and social factors influence Gen Z’s intention to engage in digital entrepreneurship. A total of 327 valid responses (57 outliers were deleted) were collected through a structured online questionnaire targeting Gen Z, particularly full-time students in Malaysian higher education institutions. Data were analysed using IBM SPSS Software version 27 and Partial Least Squares Structural Equation Modelling (PLS-SEM) SmartPLS 4.1.1.1. The findings confirm the significant direct and simple mediation relationship between ChatGPT adoption, strategic foresight, message transparency, and network translucence with digital entrepreneurial intention. Furthermore, digital technology self-efficacy is found to positively moderate the direct relationship between opportunity recognition and DEI, as well as the indirect pathways, thereby proved that digital technology self-efficacy, strengthens these relationships, especially in how confidence in using digital tools boosts the effect of recognising opportunities on the intention to start a digital venture. Therefore, it confirmed that an individual’s self-efficacy in using digital technology not only enhances their ability to act on recognised opportunities but also amplifies the likelihood of translating those opportunities into concrete digital entrepreneurial intentions. Keywords: Digital entrepreneurial intention, ChatGPT adoption, strategic foresight, message transparency, network translucence, opportunity recognition, and digital technology self-efficacy (DTSE)