Entrepreneurial ecosystem and the quality and quantity of regional entrepreneurship: A configurational approach

Xie, Zhimin; Wang, Xia; Xie, Lingmin; Duan, Kaifeng

doi:10.1016/j.jbusres.2021.02.015

Cited by 61 publications

(28 citation statements)

References 58 publications

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“…The authors also consider unicorns as an output, reaching four necessary conditions with a consistency larger than 0.9 -finance, leadership, talent and intermediate services -but with all of them having low coverage (smaller or equal to 0.21). Xie et al (2021) analyze the antecedents of entrepreneurial quality and quantity using city-level data from China. Their sufficient condition analysis highlights the importance of Internet infrastructure and innovation capacity, but the authors find no necessary conditions for either quality or quantity entrepreneurship.…”

Section: Discussionmentioning

confidence: 99%

Levels of necessity of entrepreneurial ecosystems elements

Torres

Godinho

2021

Small Bus Econ

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The literature emphasizes that interactions between biotic (the individual) and abiotic entities (the institutional environment) are central to entrepreneurial ecosystems. However, despite the importance of digital entrepreneurial ecosystem (DEE) elements, it might be questioned if all elements are equally necessary. Furthermore, different outputs might require different conditions. The same can happen with different levels of a given output. The answer to these questions is of particular concern from a policy perspective. By using necessary condition analysis (NCA) alongside with fuzzy-set qualitative comparative analysis (fs/QCA), this study advances understanding of the entrepreneurial ecosystems. While fs/QCA identifies only one necessary condition to produce digitally-enabled unicorns – market conditions – and none to unicorns and new business creation, NCA shows that all elements of DEE are necessary to produce digitally-enabled unicorns, and most of them are also necessary for producing unicorns. NCA also identifies formal institutions, regulations, and taxation and finance as necessary conditions for new business creation. Moreover, NCA shows that necessary conditions do not have the same degree of importance, and the necessity of a given condition does not automatically imply its highest level is required. For researchers, these results emphasize the importance of using NCA as a complement of fs/QCA. For practitioners, these findings can be used to optimize the allocation of policy resources, particularly targeting the elements that constitute bottlenecks. Plain English Summary Policymakers should target different levels of entrepreneurial ecosystem pillars performance to produce unicorns. Ambitious entrepreneurship is important for country competitiveness in the digital age. Digital entrepreneurial ecosystems can facilitate the rise of digitally-enabled unicorns, an extreme case of ambitious entrepreneurship. This study shows which conditions are necessary to produce this output; these conditions can be required at different levels. The comparison of country’s performance on each condition shows which of them constitute bottlenecks. Although all elements of digital entrepreneurial ecosystems are relevant for digitally-enabled unicorns, policymakers should target the ones that constrain the emergence of this output. This study identifies the levels that should be reached in each condition, not only for digitally-enabled unicorns, but also for unicorns in general. The results show relevant differences between the levels needed for these outputs. For example, knowledge creation and dissemination seem to be more important to boost digitally-enabled unicorns rather than unicorns in general. Thus, policymakers should consider specific levels of the conditions to optimize resource allocation.

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Section: Discussionmentioning

confidence: 99%

Levels of necessity of entrepreneurial ecosystems elements

Torres

Godinho

2021

Small Bus Econ

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“…In addition, Audretsch & Belitski (2016) stress six domains of the EE (culture, formal institutions, infrastructure and amenities, IT, Melting Pot, and demand). In line with this, if not in more clear terms, Xie et al (2021) indicate that human capital, financial capital, innovation capacity, internet infrastructure, physical infrastructure, market potential, and government size as factors of EE. The configuration (Lafuente et al 2021;Xie et al 2021) or interaction and intermediation dynamics of these factors (Alaassar et al 2021) lead to higher entrepreneurial quality and quantity.…”

Section: Definition and Concepts Of Entrepreneurial Ecosystem (Ee)mentioning

confidence: 55%

“…In line with this, if not in more clear terms, Xie et al (2021) indicate that human capital, financial capital, innovation capacity, internet infrastructure, physical infrastructure, market potential, and government size as factors of EE. The configuration (Lafuente et al 2021;Xie et al 2021) or interaction and intermediation dynamics of these factors (Alaassar et al 2021) lead to higher entrepreneurial quality and quantity. Among them, 'human capital' is the most relevant competitive pillar (Lafuente et al 2021).…”

Section: Definition and Concepts Of Entrepreneurial Ecosystem (Ee)mentioning

confidence: 55%

“…Nowadays, the entrepreneurial policy targets creating a more supportive EE rather than increasing the size of new firms (Szerb et al 2016). To enact an effective entrepreneurial policy, measuring the quality as well as quantity of entrepreneurship in a given country is critical for policy input (Szerb et al 2016;Xie et al 2021). Most importantly, nowadays, the quality of entrepreneurship gets more focus (Acs et al 2018), but both high quality and high quantity of entrepreneurship can be achieved by making good interaction and understanding intermediation dynamics of contributing factors (Alaassar et al 2021;Xie et al 2021).…”

Section: Introductionmentioning

confidence: 99%

“…To enact an effective entrepreneurial policy, measuring the quality as well as quantity of entrepreneurship in a given country is critical for policy input (Szerb et al 2016;Xie et al 2021). Most importantly, nowadays, the quality of entrepreneurship gets more focus (Acs et al 2018), but both high quality and high quantity of entrepreneurship can be achieved by making good interaction and understanding intermediation dynamics of contributing factors (Alaassar et al 2021;Xie et al 2021). Ács et al (2014) and Szerb et al (2016) argue that entrepreneurship has not received proper treatment at a country level and its existing measurements, that measure either output, or attitude or framework, do not show the interactions among factors and high-growth potential (Szerb et al 2016;Ács et al 2014).…”

Section: Introductionmentioning

confidence: 99%

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A comparative analysis on the entrepreneurial ecosystem of BRICS club countries: practical emphasis on South Africa

Bate

2021

SN Bus Econ

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The effectiveness of entrepreneurial activities is not only determined by the quality of entrepreneurs but also by the ecosystem of entrepreneurship. The entrepreneurial ecosystem (EE) that nurtures low-quality “moppets” to highly impactful “gazelles” is being widely debated and on-demand in literature. This study, therefore, is aimed to advance the discussion and make a comparative analysis of the entrepreneurial ecosystem, which has been given a little attention, of BRICS club countries with an especial focus on South Africa, Brazil, and India. Various entrepreneurship-economic growth-related measures including Global Entrepreneurship Index (GEI), Global Competitiveness Index (GCI), Index Economic Freedom (IEF), and Legatum Prosperity Index (LPI) are used to compare the countries’ entrepreneurial ecosystem. Especially, the data set (2012–2018) of GEI was utilized for the analysis. According to GEI and GCI of 2018, China is leading BRICS club in terms of growth and entrepreneurial ecosystem. On the other side, LPI, IEF, and GEI put South Africa’s entrepreneurial ecosystem in a favorable position as compared to Brazil and India. South Africa performs poorly in startup skills, while both the latter ones are better and stand at the same level. This shows that South Africa’s tertiary education, coupled with low skill perception, is less effective in equipping the population to be entrepreneurs as compared to India and Brazil. Whereas Brazil and India are at their worst in internationalizing the country’s entrepreneurs and technological absorption, respectively. South Africa is more like India in product innovation and risk acceptance. On the other side, it is more like Brazil in risk capital, technological absorption, opportunity perception, and in their sluggish economic growth. Overall, South Africa (57th/140 as of 2018) is categorized among those poorly performing countries in terms of start-up skills, networking, technology absorption, human Capital, and risk capital pillars. The government of South Africa needs to primarily work on these bottle-neck pillars to improve its EE. To increase GEI by 5%, it should invest 77% of its extra resource on start-up skills, 18% on risk capital, and 5% on technology absorption. Applying GEI set up, this paper claims to have uniquely contributed to how to make a country comparison on the EE. Further empirical research can be done including all BRICS countries to bolster their development effort and on how to promote EE by tackling the underlying bottlenecks.

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Research on Rural Innovation and Entrepreneurship Platform Based on Cloud Computing

Qiuju

Tan

2023

Learning and Analytics in Intelligent Systems

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Entrepreneurial ecosystem and the quality and quantity of regional entrepreneurship: A configurational approach

Cited by 61 publications

References 58 publications

Levels of necessity of entrepreneurial ecosystems elements

Levels of necessity of entrepreneurial ecosystems elements

A comparative analysis on the entrepreneurial ecosystem of BRICS club countries: practical emphasis on South Africa

Research on Rural Innovation and Entrepreneurship Platform Based on Cloud Computing

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