ABSTRACT Achieving sustainable development in emerging economies requires a deeper understanding of how institutional quality and entrepreneurial ecosystems evolve together. This study examines the complex links between business governance, entrepreneurship, and sustainable development in BRICS+ Nations, with a particular focus on the moderating role of digital infrastructure. We propose and empirically test an integrated framework where entrepreneurship mediates the governance–sustainability relationship, while digitalization moderates both direct and indirect pathways. Using a longitudinal dataset from 2000 to 2023 and employing a multi‐method econometric approach—including dynamic panel modeling (System‐GMM), mediation analysis, and moderation tests—we uncover nonlinear and paradoxical dynamics. Governance consistently fosters entrepreneurship, yet its direct impact on sustainable development is negative, indicating institutional conflicts during transitional phases. Entrepreneurship proves to be a key driver of sustainability, confirming its mediating role. Significantly, digital infrastructure acts as a double‐edged sword: it enhances the direct governance–sustainability link but weakens the indirect effects via entrepreneurship. These findings contribute in three main ways: (1) they underscore the central role of entrepreneurship in translating institutional effects into sustainability outcomes; (2) they reveal the mixed influence of digital infrastructure on these pathways; and (3) they provide practical insights for policymakers to align governance reforms and digital transformation with inclusive, entrepreneurial‐led sustainability.
Navin et al. (Tue,) studied this question.