Digital Adoption of Start-Ups With E-Governance Systems: A Mediating Role of Digital Support and Awareness

Digital Adoption of Start-Ups With E-Governance Systems: A Mediating Role of Digital Support and Awareness

Aman Sharma, Bhuvanesh Kumar Sharma, Prakash Singh, Sunil Mishra, Ameer Hussain
Copyright: © 2022 |Pages: 22
DOI: 10.4018/IJEGR.314573
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Abstract

This study aims to encourage the adoption intention of independent digitalization with e-governance among small investment start-ups. The study also analyzed the start-ups' adoption intention for digitalization by testing the significance of benefits and sacrifices associated with the digital platforms of e-governance. The current study also analyzed the moderating effect of digital support and awareness on digital adoption. The study's findings will also help the government in drafting policies to address the factors that positively impact the perceived value of digital adoption by developing a digital support system and further scaling up digital literacy, especially for start-ups. Overall, the study's findings will help the government understand the present status of start-ups' digitalization growth in India and the success rate of the Digital India mission. So, the e-governance system can be further strengthened accordingly.
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1. Introduction

In India, digitalisation techniques are evolving rapidly with the number of start-ups and small businesses. Some argue that digitalisation has grown more in the last two years than in the previous 50, especially after COVID-19 (Gulati, 2019). This shift is known as digital adoption (Gulati, 2019). Digitalisation is a vast concept involving various aspects like digital platforms, digital branding, search engine optimisation, and social media adoption (Kaushik, 2016; Smith, 2011). A significant proportion of the world access computers and mobile devices, which shows a huge increment in digital investment (Ritz et al., 2019). Recently, digital platforms and widespread internet use have necessitated the adoption of digitalisation (Morris, 2009). Digital platforms have changed the way marketers engage with today's customers (Ritz et al., 2019). This study proposes the digital adoption intention (ADP) of start-ups with the e-governance system. For this paper's purpose, E-governance is a way for the government to use the most effective information and communication technologies (ICT), especially online digital platforms, to provide start-ups with easy accessibility to government-provided digital media, to improve the quality of their digital existence, and to increase opportunities to engage in democratic processes and institutions (Tikhomirova, 2020). The digitalisation of businesses is a subdivision of e-governance. E-governance provides a significant incentive to advance in the information age with higher quality, more cost-effective and improved business-government connections. Digital adoption has promoted the growth of government institutions in the era of globalisation, explicitly using digital platforms to improve service management quality (Garad & Qamari, 2021).

Despite India's robust start-up environment, 90% of start-ups fail within five years (Abbas & Mehmood, 2021). Although most start-ups and small businesses registered with DIPP and start-up India have websites, they still struggle to adopt and under-utilise digital platforms. As a developing nation, India needs start-ups to improve its economy. Involvement of e-governance in the digitalisation of start-ups can solve the problem of lack of funding with the help of government initiatives like Pradhan Mantri mudra Yojna, Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTSME), Start-up India and Digital India (David et al., 2021). Kumar (2020) stated that Digitalization with e-governance would ease money transactions and cut down the illegal cycle of black money. Auditing will become significantly easier. Servers will handle large databases so they can be checked and verified. The public can get access to information at hand and at any time. Also, it aspires for seamless integration between government departments/jurisdictions and businesses with real-time online/web-based platforms (Mohanta et al., 2017). Digital adoption can strengthen the existing e-governance system by promoting inclusive growth that includes electronic services, goods, gadgets, and employment prospects (Abu-Shanab & Osmani, 2019). Everything will be available online, from registration to funding, making it easy for the public to acquire the information they need. The digital economy will undoubtedly pave the way for e-governance, in which all government functions will be delivered electronically (Kumar, 2020).

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