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Coworking spaces and Start-ups: Empirical evidence from a product market competition and life cycle perspective

Author

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  • Gauger, Felix
  • Pfnür, Andreas
  • Strych, Jan-Oliver

Abstract

This paper is an empirical analysis – based on classic buyer–seller relationship theory – of the spatial relationship between coworking spaces and start-ups in an entrepreneurial ecosystem. We examine the relation between product market competition among coworking spaces and the life-cycle stages of their partnering start-ups, both of which influence the level of trust between the partners. In our hand-collected sample of coworking spaces in Germany’s seven largest cities, our findings indicate that mature start-ups are more likely to partner with coworking spaces in regions where product market competition among the latter is high. The relation between the number of nascent start-ups and product market competition among coworking spaces is found to be hump-shaped, indicating that nascent start-ups are more likely to partner with coworking spaces where market competition is neither too low nor too high. Our findings are corroborated by a European study based on WeWork data.

Suggested Citation

  • Gauger, Felix & Pfnür, Andreas & Strych, Jan-Oliver, 2021. "Coworking spaces and Start-ups: Empirical evidence from a product market competition and life cycle perspective," Journal of Business Research, Elsevier, vol. 132(C), pages 67-78.
    • Handle: RePEc:eee:jbrese:v:132:y:2021:i:c:p:67-78
    DOI: 10.1016/j.jbusres.2021.04.008
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    Cited by:

    1. Fernandes, Kiran Jude & Milewski, Simon & Chaudhuri, Atanu & Xiong, Yu, 2022. "Contextualising the role of external partnerships to innovate the core and enabling processes of an organisation: A resource and knowledge-based view," Journal of Business Research, Elsevier, vol. 144(C), pages 146-162.

    More about this item

    Keywords

    Coworking space; Start-ups; Trust; Product market competition; Buyer–seller relation theory; Entrepreneurial ecosystem;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R33 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Nonagricultural and Nonresidential Real Estate Markets
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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