Moving a Mountain with a Teaspoon : Toward a Theory of Digital Entrepreneurship in the Regulatory Environment

Digital entrepreneurship is an emerging phenomenon in the digital era. While the literature has started to look into this phenomenon, the attention has been paid mainly to digital startups in free markets. In a regulatory environment, however, it is unclear how a new startup might digitally transform business through entrepreneurial actions to overcome the challenges and barriers from regulations. Drawing on the dynamic capabilities and digital innovation literature, I conduct an in-depth longitudinal study at a Dutch digital startup. I trace the underlying mechanisms through which it creates digital solutions to the regulations in the Dutch healthcare sector — demand-driven digital disruption, fast digital adaptation, and continuous digital transplantation. Novel implications for digital entrepreneurship in the regulatory environment are presented.