How digital government promotes employment and entrepreneurship: a triple theoretical analysis

Abstract

Employment and entrepreneurship are two closely intertwined modes of work, serving as the cornerstones for livelihood security and economic development. Both require government support and services. Digital government, optimized through digital technologies, plays a crucial role in facilitating employment and entrepreneurship. This study uses inductive reasoning to explore how digital government promotes employment and entrepreneurship based on a sequence of what, why, and how reasoning. Initially, in the context of China, real-world observations reveal problems such as incomplete information disclosure, immature administrative systems, and a need for enhanced service quality in government support for employment and entrepreneurship. Drawing upon theoretical foundations, analyses are conducted based on three theories: asymmetric information theory, transaction cost theory, and new public service theory. Recommendations for strengthening digital government are then proposed, grounded in these theories. The theoretical foundation established by this study on how digital government promotes employment and entrepreneurship development is not only applicable to China but also to the majority of developing countries worldwide. It holds significant theoretical value and practical implications for governments worldwide in leveraging digital government to better serve and promote employment and entrepreneurship development, thereby advancing economic and social development.