How Does Generative AI Drive Business Models’ Iterative Innovation of Digital Entrepreneurial Enterprises? From the Perspective of Entrepreneurial System Elements

The rapid development of generative AI technology has provided new pathways for iterative innovation in the business models of digital entrepreneurial enterprises. Based on the entrepreneurial system elements theory, this study constructs a theoretical model of generative AI-empowered iterative innovation in the business models of digital entrepreneurial enterprises and aims to explore the roles of core entrepreneurial system elements (entrepreneurial opportunities, entrepreneurial resources, entrepreneurial teams) and contingency elements (environmental uncertainty) therein. Through empirical analysis of 279 questionnaires, the results show the following: First, generative AI can effectively drive iterative innovation in the business models of digital entrepreneurial enterprises; second, entrepreneurial opportunity identification, entrepreneurial resource integration, and entrepreneurial team decision-making all play partial mediating roles in the process of generative AI-driven iterative innovation in the business models of digital entrepreneurial enterprises; third, environmental uncertainty positively moderates the process of generative AI-driven iterative innovation in the business models of digital entrepreneurial enterprises. The research findings contribute to enriching and expanding digital entrepreneurship theory and provide practical guidance for digital entrepreneurial enterprises to achieve iterative innovation in their business models.