The Future of Gen Z Entrepreneurship: Do Network Connections Mediate Digital Competence and Creative Self-Efficacy toward Readiness?

Abstract

This study examines the role of network connections in mediating the relationship between digital competence, creative self-efficacy, and entrepreneurial readiness among Generation Z. As digital transformation continues to reshape the entrepreneurial ecosystem, understanding the factors that influence Gen Z's readiness to engage in entrepreneurship becomes increasingly important. This research employs a quantitative approach using Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze the direct and indirect relationships among the proposed variables. Data were collected from 84 Gen Z respondents who are active students at the Faculty of Economics and Business, University of Jember. The findings indicate that digital competence does not have a direct significant effect on entrepreneurial readiness, but does have a significant effect through network connections as a mediator. Conversely, creative self-efficacy has a direct significant effect on entrepreneurial readiness and also indirectly through network connections. Network connections emerged as the most dominant predictor of entrepreneurial readiness and served as a full mediator for digital competence and a partial mediator for creative self-efficacy. These findings underscore that for Generation Z, digital competence must be channeled through strategic networking to effectively transform individual potential into tangible entrepreneurial preparedness, while creative self-efficacy can directly drive readiness. This study contributes to the entrepreneurship literature by offering insights into how internal competencies and social capital interact to shape the future of Gen Z entrepreneurship.