Towards a network-based view of effective entrepreneurial ecosystems

Abstract

We conceptualize entrepreneurial ecosystems as fundamentally reliant on networks and explore how and under what conditions inter-organizational networks lead an entrepreneurial ecosystem to form and evolve. It is widely accepted that entrepreneurial ecosystems possess a variety of symbiotic relationships. Research has focused considerable efforts in refining the structure and content of resources found within these networked relationships. However, merely focusing on actor-level characterizations dilutes the notion that social relationships change and are complex. There has been little conceptual treatment of the behavioral and governance factors that underpin how quality interactions composing an entrepreneurial ecosystem develop and change over time. In response, we provide a longitudinal ethnographic study examining how ecosystems are managed and evolve in their relational configurations and governance at critical junctures. Using mixed methods and data collected over 3 years, we reveal a cyclical process of relational development central to the initiation, development, and maintenance phases of a valuable entrepreneurial ecosystem. We contribute to a conceptualization of effective ecosystems as reliant on networks, we reveal the behavior and governance characteristics at play in the entrepreneurial ecosystem during each phase of its evolution.

Entrepreneurial ecosystems in an interconnected world: emergence, governance and digitalization

“…In the article, "Towards a network-based view of effective entrepreneurial ecosystems", Scott et al (2020) provide a conceptualization of how effective entrepreneurial ecosystems evolve and develop using a three-longitudinal and mixed-method ethnography. The authors suggest that prior static treatments of how entrepreneurial ecosystems emerge have overlooked the necessity to develop inter-organizational ties, behaviors, and the governance mechanisms to maintain the vibrancy, vitality, and wealth creation of the ecosystem.…”

Understanding the relationship between networks, startup risk-taking behaviour, and digitalization: the role of ecosystem coopetition

“…The coopetition behaviour and propensity of all actors in the ecosystem constitute the overall coopetition attribute of the ecosystem. This characteristic may shed light on why one ecosystem performs better than others (Scott, Hughes, & Ribeiro-Soriano, 2021).…”

“…We focus on the entrepreneurial ecosystem, which pays particular attention to structure (see Adner, 2017;Hou & Shi, 2021) and may be formed based on networks (see Scott, Hughes, & Ribeiro-Soriano, 2021). This article provides an in-depth exploration of structural embeddedness.…”

“…Entrepreneurial ecosystems and networks are closely related. The ecosystem can be regarded as a concept that fundamentally relies on networks, and interorganizational networks may lead ecosystems to form or evolve (Scott, Hughes, & Ribeiro-Soriano, 2021). The ecosystem can be understood as a complex social construct composed of a network of entrepreneurs, investors, and supporting institutions (Neumeyer, Santos, & Morris, 2019).…”

“…Furthermore, entities within the same ecosystem need to conduct value creation activities based on a shared vision (Pitelis, 2012). There will be complex interactions and relationships between entities (Scott, Hughes, & Ribeiro-Soriano, 2021). Through such processes, startups that were originally scarce in resources can obtain the resources they need, as the ecosystem may provide access to resources and finance, facilitate the easing of institutional barriers, and stimulate the knowledge spill-over among entities (Feldman & Francis, 2004;Owen-Smith & Powell, 2004;Powell, 2002;Spigel, 2017;Yin, Hughes, & Hu, 2021).…”