Policy Lag in the Age of Immersive Technologies: A Comparative Analysis of Metaverse Entrepreneurship Regulation in Emerging Economies

Policy Lag in the Age of Immersive Technologies: A Comparative Analysis of Metaverse Entrepreneurship Regulation in Emerging Economies | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Policy Lag in the Age of Immersive Technologies: A Comparative Analysis of Metaverse Entrepreneurship Regulation in Emerging Economies Ugonna Obi-Emeruwa, Glory Edem Ekaette, Biodun Bukky Ogundipe This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-8910650/v1 This work is licensed under a CC BY 4.0 License Status: Under Review Version 1 posted 5 You are reading this latest preprint version Abstract The rapid emergence of immersive technologies, such as the metaverse, has been reshaping entrepreneurial activity within digital and virtual economies, particularly in emerging markets. However, regulatory and policy frameworks in many of these economies have been observed to struggle in evolving at a pace commensurate with technological advancements, resulting in what has been conceptualized in this study as policy lag. This paper examines how policy lag influences metaverse-based entrepreneurship through a comparative analysis of selected emerging economies, including Nigeria, Kenya, India, and South Africa. The study is anchored in institutional theory, policy entrepreneurship, and innovation governance perspectives, and explores the extent to which existing digital, data protection, financial, and innovation policies are supporting or constraining entrepreneurial activity within immersive virtual environments. A qualitative comparative approach, based on policy document analysis and secondary data, was employed to identify recurring regulatory gaps, institutional misalignments, and adaptive entrepreneurial responses to governance uncertainty. It was found that while policy lag generates regulatory ambiguity and compliance challenges, it also enables regulatory arbitrage and entrepreneurial experimentation within loosely governed virtual spaces. Through this analysis, policy lag is advanced as a critical analytical lens for understanding technology–policy misalignment in emerging economies. Based on the findings, a flexible governance framework is proposed to guide the development of adaptive, innovation-friendly regulation for metaverse entrepreneurship. Recommendations include the establishment of dedicated regulatory task forces, the promotion of regional collaboration, and the adoption of agile regulatory approaches to address the dynamic nature of immersive technologies. Additionally, increased stakeholder engagement and capacity-building initiatives are suggested to bridge identified gaps and foster an enabling environment for metaverse entrepreneurship in emerging economies. Metaverse Entrepreneurship Policy Innovation Governance Digital Regulation Emerging Economies Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Under Review Version 1 posted Reviewers agreed at journal 04 Mar, 2026 Reviewers invited by journal 01 Mar, 2026 Editor assigned by journal 26 Feb, 2026 Submission checks completed at journal 26 Feb, 2026 First submitted to journal 18 Feb, 2026 You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-8910650","acceptedTermsAndConditions":true,"allowDirectSubmit":false,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":600774952,"identity":"b07eb4a1-f0f0-49da-858c-3aa9d064e6ac","order_by":0,"name":"Ugonna Obi-Emeruwa","email":"","orcid":"","institution":"African University of Science and Technology","correspondingAuthor":false,"prefix":"","firstName":"Ugonna","middleName":"","lastName":"Obi-Emeruwa","suffix":""},{"id":600774953,"identity":"48065de9-e835-453c-9974-0df20a36fc00","order_by":1,"name":"Glory Edem Ekaette","email":"data:image/png;base64,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","orcid":"","institution":"African University of Science and Technology","correspondingAuthor":true,"prefix":"","firstName":"Glory","middleName":"Edem","lastName":"Ekaette","suffix":""},{"id":600774954,"identity":"8447646f-b626-4f8d-abac-7159949f9182","order_by":2,"name":"Biodun Bukky Ogundipe","email":"","orcid":"","institution":"African University of Science and Technology","correspondingAuthor":false,"prefix":"","firstName":"Biodun","middleName":"Bukky","lastName":"Ogundipe","suffix":""}],"badges":[],"createdAt":"2026-02-18 15:24:34","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-8910650/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-8910650/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":104403169,"identity":"a71dc550-4a8e-4915-a57c-75ff79633104","added_by":"auto","created_at":"2026-03-11 12:17:39","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":454961,"visible":true,"origin":"","legend":"","description":"","filename":"PolicyLagManuscript.pdf","url":"https://assets-eu.researchsquare.com/files/rs-8910650/v1_covered_f0386baf-dbaa-4dd1-b774-9b22efa332d8.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"\u003cp\u003ePolicy Lag in the Age of Immersive Technologies: A Comparative Analysis of Metaverse Entrepreneurship Regulation in Emerging Economies\u003c/p\u003e","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":false,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"journal-of-global-entrepreneurship-research","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":false,"externalIdentity":"","sideBox":"Learn more about [Journal of Global Entrepreneurship Research](https://link.springer.com/journal/40497)","snPcode":"40497","submissionUrl":"https://submission.springernature.com/new-submission/40497/3","title":"Journal of Global Entrepreneurship Research","twitterHandle":"","acdcEnabled":true,"dfaEnabled":true,"editorialSystem":"stoa","reportingPortfolio":"Springer Hybrid","inReviewEnabled":true,"inReviewRevisionsEnabled":false},"keywords":"Metaverse Entrepreneurship, Policy, Innovation Governance, Digital Regulation, Emerging Economies","lastPublishedDoi":"10.21203/rs.3.rs-8910650/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-8910650/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThe rapid emergence of immersive technologies, such as the metaverse, has been reshaping entrepreneurial activity within digital and virtual economies, particularly in emerging markets. However, regulatory and policy frameworks in many of these economies have been observed to struggle in evolving at a pace commensurate with technological advancements, resulting in what has been conceptualized in this study as policy lag. This paper examines how policy lag influences metaverse-based entrepreneurship through a comparative analysis of selected emerging economies, including Nigeria, Kenya, India, and South Africa. The study is anchored in institutional theory, policy entrepreneurship, and innovation governance perspectives, and explores the extent to which existing digital, data protection, financial, and innovation policies are supporting or constraining entrepreneurial activity within immersive virtual environments. A qualitative comparative approach, based on policy document analysis and secondary data, was employed to identify recurring regulatory gaps, institutional misalignments, and adaptive entrepreneurial responses to governance uncertainty. It was found that while policy lag generates regulatory ambiguity and compliance challenges, it also enables regulatory arbitrage and entrepreneurial experimentation within loosely governed virtual spaces. Through this analysis, policy lag is advanced as a critical analytical lens for understanding technology\u0026ndash;policy misalignment in emerging economies. Based on the findings, a flexible governance framework is proposed to guide the development of adaptive, innovation-friendly regulation for metaverse entrepreneurship. Recommendations include the establishment of dedicated regulatory task forces, the promotion of regional collaboration, and the adoption of agile regulatory approaches to address the dynamic nature of immersive technologies. Additionally, increased stakeholder engagement and capacity-building initiatives are suggested to bridge identified gaps and foster an enabling environment for metaverse entrepreneurship in emerging economies.\u003c/p\u003e","manuscriptTitle":"Policy Lag in the Age of Immersive Technologies: A Comparative Analysis of Metaverse Entrepreneurship Regulation in Emerging Economies","msid":"","msnumber":"","nonDraftVersions":[{"code":1,"date":"2026-03-06 20:35:28","doi":"10.21203/rs.3.rs-8910650/v1","editorialEvents":[{"type":"communityComments","content":0},{"type":"reviewerAgreed","content":"113867991955523073882542990960235087580","date":"2026-03-04T08:37:07+00:00","index":"hide","fulltext":""},{"type":"reviewersInvited","content":"","date":"2026-03-01T23:22:47+00:00","index":"","fulltext":""},{"type":"editorAssigned","content":"","date":"2026-02-26T09:42:00+00:00","index":"","fulltext":""},{"type":"checksComplete","content":"","date":"2026-02-26T09:39:19+00:00","index":"","fulltext":""},{"type":"submitted","content":"Journal of Global Entrepreneurship Research","date":"2026-02-18T15:20:08+00:00","index":"","fulltext":""}],"status":"published","journal":{"display":true,"email":"[email protected]","identity":"journal-of-global-entrepreneurship-research","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":false,"externalIdentity":"","sideBox":"Learn more about [Journal of Global Entrepreneurship Research](https://link.springer.com/journal/40497)","snPcode":"40497","submissionUrl":"https://submission.springernature.com/new-submission/40497/3","title":"Journal of Global Entrepreneurship Research","twitterHandle":"","acdcEnabled":true,"dfaEnabled":true,"editorialSystem":"stoa","reportingPortfolio":"Springer Hybrid","inReviewEnabled":true,"inReviewRevisionsEnabled":false}}],"origin":"","ownerIdentity":"ee827548-1a42-45f4-8cff-22a754d3e23e","owner":[],"postedDate":"March 6th, 2026","published":true,"recentEditorialEvents":[],"rejectedJournal":[],"revision":"","amendment":"","status":"under-review","subjectAreas":[],"tags":[],"updatedAt":"2026-03-06T20:35:28+00:00","versionOfRecord":[],"versionCreatedAt":"2026-03-06 20:35:28","video":"","vorDoi":"","vorDoiUrl":"","workflowStages":[]},"version":"v1","identity":"rs-8910650","journalConfig":"researchsquare"},"__N_SSP":true},"page":"/article/[identity]/[[...version]]","query":{"redirect":"/article/rs-8910650","identity":"rs-8910650","version":["v1"]},"buildId":"XKTyCvWXoU3ODBz1xrDgd","isFallback":false,"isExperimentalCompile":false,"dynamicIds":[84888],"gssp":true,"scriptLoader":[]}