The role of cluster ecosystems and intellectual capital in achieving high-growth entrepreneurship: evidence from Germany

Abstract

PurposeThis paper examines the role played by business cluster ecosystems and intellectual capital (IC) in achieving high-growth firm (HGF) status.Design/methodology/approachWe draw our insights from the knowledge-based perspective and economic geography as a theoretical lens, which combined offer a more unifying understanding of how business cluster ecosystems and IC foster high growth entrepreneurship.FindingsDrawing on a sample of 11,360 German incorporated firms across 80 clusters, we find that cluster ecosystems play a significant role in supporting firms to become HGFs. More specifically, being located in business clusters increases the likelihood of becoming HGFs by 2.2% to 4.49%. We also find that clusters with more productive firms in the ecosystems provide favorable conditions for member firms to achieve HGF status, while the impact of other cluster-specific conditions (high-tech cluster membership and multinational enterprise share in clusters) is less clear. Additional insights suggest that firm IC (investments in intangible assets) enables firms to achieve high growth status.Research limitations/implicationsThe findings of this paper hold theoretical and managerial relevance and shed more light on the impact of cluster-specific factors in the ecosystems and firm IC in achieving high growth entrepreneurship.Originality/valueThis paper is among the first of its kind to bring together three distinct literatures (HGFs, business clusters and IC) and utilize insights from each to derive a conceptual framework that links them in explaining high-growth entrepreneurship.