Entrepreneurial potential in digital transformation: scale development using item response theory

Purpose This study aims to develop a scale using item response theory (IRT) to assess the entrepreneurial potential for digital transformation in Brazilian companies. Design/methodology/approach IRT was used to develop a scale for entrepreneurial potential in digital transformation. This scale was constructed from a questionnaire, covering the domains: (1) data-driven culture, (2) openness to knowledge and adaptation to change, (3) connectivity and (4) creativity and innovation. The questionnaire was administered to a sample of 216 entrepreneurs from small business enterprise (SBE) and startups in Brazil. Findings A questionnaire was developed and validated to assess the latent trait of entrepreneurial potential within the context of digital transformation. Additionally, a three-level scale of entrepreneurial potential was established: low (level I), intermediate (level II) and high (level III). The interpretation of this scale provides valuable information on which domains, such as data-driven culture, innovation, among others, can be enhanced to improve the potential of entrepreneur for digital transformation. Research limitations/implications The sample was limited to small Brazilian companies and startups, which may restrict the applicability of the results to other business or geographic contexts. Additionally, the items evaluated in the scale may not fully capture all nuances of entrepreneurial potential for digital transformation. Future research should consider including new items that cover a broader range of entrepreneurial characteristics. Practical implications The findings of this study have significant practical implications for the Brazilian entrepreneurial ecosystem, the entrepreneurs themselves, public policy makers and entrepreneurship support institutions. These results can guide digital transformation strategies, adjustments in public policies and investments, thereby promoting economic development and innovation in the country. Originality/value This study stands out for using IRT as a robust methodology to develop an interpretative scale to assess entrepreneurial potential in the digital transformation era. By focusing on Brazilian SBEs and startups, the study offers an original contribution on how these companies are handling the challenges of digitalization and identifying areas for improvement to further promote digital transformation among entrepreneurs.