Conceptualising governance pathways for digital entrepreneurial ecosystems: A Nested-Cyclical framework

Abstract Digital transformation is reshaping entrepreneurial ecosystems by redefining value creation, stakeholder dynamics, and innovation trajectories. While digital technologies can enhance efficiency and foster innovation, their benefits are often unevenly distributed, reinforcing structural inequalities between regions and sectors. These disparities underscore the need for governance systems that are both adaptive and inclusive, capable of evolving with technological change while addressing social and territorial asymmetries. This research unveils the Nested-Cyclical Model (NeCyM) for Entrepreneurial Innovation, a framework that integrates governance, innovation, and entrepreneurship as co-evolving forces within dynamic ecosystems. Drawing on interdisciplinary literature, the model positions governance not as a static structure but as a generative actor that enables iterative learning, stakeholder co-creation, and institutional adaptability. The NeCyM challenges linear and state-centric paradigms by foregrounding feedback loops, decentralised collaboration, and systems-level transformation. Theoretically, the model contributes to innovation and governance studies by offering a processual perspective suited to volatile and digitalised environments. Practically, it provides a foundation for designing governance systems that support inclusive, context-sensitive, and sustainability-oriented innovation. The paper concludes with implications for researchers and policymakers, offering pathways for empirical validation and operational application across urban innovation districts, regional ecosystems, and collaborative governance platforms.