Alternative Design Theories and the Temporal Nature of Top-Down Entrepreneurial Ecosystem Support Processes: Implications for Resource-Constrained Emerging Ecosystems in Transition

Abstract

Entrepreneurial Ecosystem (EE) research has explored bottom-up ecosystems that spontaneously appear then develop over time and top-down formed ecosystems deliberately established through organizational sponsorship designed to enable productive entrepreneurship. Despite the crucial role organizational sponsorship plays in entrepreneurial support activities, prior research has overlooked the critical design methods used to formulate the strategy and temporal dynamic factors required to establish and operate top-down emerging resource-constrained ecosystems. Specifically, in the year leading up to initial ecosystem launch, which design methods are used to determine entrepreneur support activities and timing, then what is modified during the first year of operation? Approaching top-down established ecosystems as operating entities and building on current EE theory along with a range of design theories, this study examines relevant literature with a focus on initial and ongoing operating strategy formulation. The findings argue that effectuation principles can be used to design emerging top-down ecosystems better and proposes a new fourth, temporal effectuation means principle to explain support activity introduction timing and sequencing. By doing so, this paper offers evidence and theoretical elaboration for an extended version of the effectuation concept to build emerging entrepreneurial ecosystems in uncertain resource-constrained locations. These findings could be particularly relevant to inner-city, migrant-based, remote, transition economies or economically/demographically declining regions with a desire to promote entrepreneurship.