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The role of local embeddedness and non-local knowledge in entrepreneurial activity

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  • Mikhail Martynovich

    (Lund University)

Abstract

The article investigates whether the history of individuals’ spatial relocation has an impact on their propensity to perform an entrepreneurial entry and post-entry performance of firms they start. By looking at entrepreneurs in the IT services sector in Swedish non-core regions between 1991 and 2010, the article investigates the interaction between individuals’ embeddedness in local networks and their exposure to external knowledge accumulation opportunities across different geographical settings, as well as its impact on their entrepreneurial activities. The results of the analysis suggest that individuals with broad spatial relocation histories are more likely to start IT firms in non-core regions, which, in turn, may be expected to survive longer. It is, therefore, claimed that non-local knowledge accumulated through spatial relocation is an important complement to embeddedness in local networks in non-core regions. This complementarity is further related to the evolution of the IT services sector over time.

Suggested Citation

  • Mikhail Martynovich, 2017. "The role of local embeddedness and non-local knowledge in entrepreneurial activity," Small Business Economics, Springer, vol. 49(4), pages 741-762, December.
    • Handle: RePEc:kap:sbusec:v:49:y:2017:i:4:d:10.1007_s11187-017-9871-9
    DOI: 10.1007/s11187-017-9871-9
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    Cited by:

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    3. Yasuyuki Motoyama & Sameeksha Desai, 2022. "Stickiness of entrepreneurs: an exploratory study of migration in two mid-sized US cities," Small Business Economics, Springer, vol. 58(4), pages 2139-2155, April.
    4. In Hyeock (Ian) Lee, 2022. "Startups, relocation, and firm performance: a transaction cost economics perspective," Small Business Economics, Springer, vol. 58(1), pages 205-224, January.
    5. Luqi Li & Ben Derudder & Wei Shen & Xiang Kong, 2022. "Exploring the dynamics of the disaggregated intercity corporate network in the Yangtze River Delta, China: a relational event approach," Journal of Geographical Systems, Springer, vol. 24(1), pages 115-140, January.
    6. Lars Speckemeier & Dimitrios Tsivrikos, 2022. "Green Entrepreneurship: Should Legislators Invest in the Formation of Sustainable Hubs?," Sustainability, MDPI, vol. 14(12), pages 1-26, June.
    7. Imran Ahmed Shah & Tamas Csordas & Umair Akram & Amit Yadav & Hassan Rasool, 2020. "Multifaceted Role of Job Embeddedness Within Organizations: Development of Sustainable Approach to Reducing Turnover Intention," SAGE Open, , vol. 10(2), pages 21582440209, June.

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    More about this item

    Keywords

    Entrepreneurship; Mobility; Locational behavior; Spatial biographies; Local embeddedness; Non-local knowledge;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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