Cultural hysteresis, entrepreneurship and economic crisis

Entrepreneurship and local economic resilience: the impact of institutional hysteresis in peripheral places

“…However, as highlighted by Martin and Sunley (2006), path dependence can have different causes, such as technological lock-in, dynamic increasing returns where positive feedback reinforces existing development paths, and the tendency of informal institutions to be self-reproducing over time which culminates in institutional hysteresis. Thus, hysteresis is itself a form of path dependence and can manifest as a product of historical time (Setterfield 1993;Tubadji et al 2016), creating a path dependence that is 'grounded in the reproduction of instituted forms of behaviour' (Hudson 2005, p.583). Indeed, institutional hysteresis manifests as the continuous reproduction of institutions 'even if the original conditions that caused their creation might have long disappeared' (Bathelt and Glückler 2014, p.9).…”

“…As the self-reproducing nature of institutions can create 'unchanging cultures' (Simmie and Martin 2010), institutional hysteresis can serve to limit entrepreneurial activity in PPIPs, thereby constraining the adaptive capacity of a local economy and with it its economic resilience. Indeed, as cultural perceptions and attitudes change much more slowly than economic conditions, there is a persistence of culture related phenomena, although Tubadji et al (2016) state that this may decrease in impact during a crisis period. However, we find that the continued economic underperformance and constrained level of entrepreneurial activity in PPIPs is the result of rigid informal institutions which culminate in institutional hysteresis at the local level, undermining local economic resilience.…”

“…Despite the shift in government policy and formal institutions more broadly, Doncaster was locked in to what Byrne (2002, p.287) refers to as an 'industrial structure of feeling', namely the specific set of values, norms and behaviours which governed the way of life. This is akin to the cultural hysteresis described by Tubadji et al (2016), although acutely localised in its impact as the dominant City of Sheffield was quicker to adapt to the demands of the new economy. Another consequence of mass unemployment was the limited capacity of communities to adapt to the shock, with the wage labour mentality at odds with the ideology of entrepreneurship and enterprise.…”

Which Sectors Really Matter for a Resilient Chinese Economy? A Structural Decomposition Analysis

“…In addition, geographers emphasized "region-specific" or "competitiveness" effects on economic resilience [26]. In this vein of research, literature emphasized the role of place-bound, invisible factors in shaping local economic resilience, such as social values [27], innovation [28], creative small-and-medium sized enterprises (SMEs) [29], entrepreneurship [30,31], as well as the variety of local economic cultures [32]. A recent study identified there exists an inverted U-shaped relationship between local economic embeddedness and resilience [33].…”

Blessing in disguise: long-run benefits of urban disasters

“…Such inert response mechanisms may fi nd their origin in historical and cultural attitudes in some regions or cities or in ineff ective and low-responsive management and policy systems in cities. In other words, even though disasters or shocks are often not forecastable, the response system (in terms of local attitudes and eff ective counter-measures) is critical in coping with jumps in a system and hence in paving a road to a new balance (also see for a recent study Tubadji et al 2016).…”