The power of entrepreneurial innovation capital in higher education: A diffusion of innovation approach to Generation Z entrepreneurship education

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Muhammad Hasan

2026 International Journal of Management Education Vol. 24 Issue 2 Article Cited by 1 Quartile

Abstract

Entrepreneurship education worldwide faces the challenge of preparing young generations to adapt to digital disruption, sustainability demands, and limited social resources. These challenges are especially acute in emerging economies, where digital divides, weak academic–industry linkages, and institutional constraints hinder innovation readiness. This study examines how digital innovation competence, AI-enabled entrepreneurial capability, sustainable innovation mindset, and entrepreneurial social capital influence entrepreneurial readiness for innovation through the mediating role of innovation adoption dynamics among Generation Z students in Indonesian universities, representing Southeast Asian emerging economies. Based on survey data from 832 respondents analyzed with Partial Least Squares Structural Equation Modeling (PLS-SEM), the findings confirm that all four factors significantly affect both adoption dynamics and readiness, with adoption acting as a key mediator. The study introduces entrepreneurial innovation capital as a novel integrative construct that combines technological, cognitive, sustainability, and social dimensions, positioning it as a transformational resource for overcoming structural barriers. Theoretically, the research extends diffusion of innovation, human capital, experiential learning, job demands–resources, and social capital theories within entrepreneurship education. Practically, it highlights the urgency for universities and policymakers to integrate digital and AI-based training, embed sustainability, and strengthen collaborative ecosystems globally. © 2026 Elsevier Ltd

Affiliations

Faculty of Economics and Business, Universitas Negeri Makassar, Jl. Raya Pendidikan, South Sulawesi, Makassar, IDN-90222, Indonesia