Teach fishing and give fish: the duality affordance mechanism of digital technology adoption on entrepreneurial dynamic capability

Purpose Entrepreneurial dynamic capability is crucial for start-ups to navigate uncertainties, overcome low growth and high failure rates, and achieve sustainable development in the VUCA era. Digital technology has significantly influenced the formation and development of entrepreneurial dynamic capability based on its affordance attributes. This paper aims to investigate the duality affordance mechanism of digital technology exerting on formation and development of entrepreneurial dynamic capability in the digital context. Design/methodology/approach By focusing on digital readiness, social networks, entrepreneurial learning, and digital technology adoption, the study employs a mixed-method research design to examine the affordance mechanism of digital technology adoption on entrepreneurial dynamic capability in a staged manner based on questionnaire responses collected in southeastern China. In the first stage, structural modelling and regression analysis are used to test the effect of physical and cognitive affordances of digital technology. In the second stage, fuzzy-set qualitative comparative analysis (fsQCA) is applied to further explore the configurational conditions under which physical and cognitive affordance operate, and to investigate the interrelationships between the two affordances. Findings Firstly, digital technology exerts a dual affordance effect on entrepreneurial dynamic capability through physical and cognitive affordances. Secondly, the effectiveness of the physical affordance is contingent upon the presence of digital assets, while the cognitive affordance effect depends on the existence of strong digital capability. Thirdly, the physical and cognitive affordance effects of digital technology on entrepreneurial dynamic capability are found to be strongly synergistic, mutually reinforcing. Originality/value By integrating dynamic capability theory with affordance theory, the paper proposes a duality affordance mechanism model of digital technology adoption on entrepreneurial dynamic capability and uncovers the existence of multiple, equifinal, synergistic pathways through which digital technology adoption exerts, resulting in deepening and expanding current understanding of how digital technology adoption affects entrepreneurial dynamic capability through a more holistic and interactional lens.