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Big data methods, social media, and the psychology of entrepreneurial regions: capturing cross-county personality traits and their impact on entrepreneurship in the USA

Author

Listed:
  • Martin Obschonka

    (Queensland University of Technology)

  • Neil Lee

    (London School of Economics and Political Science)

  • Andrés Rodríguez-Pose

    (London School of Economics and Political Science)

  • Johannes C. Eichstaedt

    (University of Pennsylvania)

  • Tobias Ebert

    (University of Mannheim)

Abstract

There is increasing interest in the potential of artificial intelligence and Big Data (e.g., generated via social media) to help understand economic outcomes. But can artificial intelligence models based on publicly available Big Data identify geographical differences in entrepreneurial personality or culture? We use a machine learning model based on 1.5 billion tweets by 5.25 million users to estimate the Big Five personality traits and an entrepreneurial personality profile for 1772 US counties. The Twitter-based personality estimates show substantial relationships to county-level entrepreneurship activity, accounting for 20% (entrepreneurial personality profile) and 32% (Big Five traits) of the variance in local entrepreneurship, even when controlling for other factors that affect entrepreneurship. Whereas more research is clearly needed, our findings have initial implications for research and practice concerned with entrepreneurial regions and eco-systems, and regional economic outcomes interacting with local culture. The results suggest, for example, that social media datasets and artificial intelligence methods have the potential to deliver comparable information on the personality and culture of regions than studies based on millions of questionnaire-based personality tests.

Suggested Citation

  • Martin Obschonka & Neil Lee & Andrés Rodríguez-Pose & Johannes C. Eichstaedt & Tobias Ebert, 2020. "Big data methods, social media, and the psychology of entrepreneurial regions: capturing cross-county personality traits and their impact on entrepreneurship in the USA," Small Business Economics, Springer, vol. 55(3), pages 567-588, October.
  • Handle: RePEc:kap:sbusec:v:55:y:2020:i:3:d:10.1007_s11187-019-00204-2
    DOI: 10.1007/s11187-019-00204-2
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    2. Tobias Kollmann & Lucas Kleine-Stegemann & Katharina Cruppe & Christina Then-Bergh, 2022. "Eras of Digital Entrepreneurship," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 64(1), pages 15-31, February.
    3. Carlo Corradini & Emma Folmer & Anna Rebmann, 2022. "Listening to the buzz: Exploring the link between firm creation and regional innovative atmosphere as reflected by social media," Environment and Planning A, , vol. 54(2), pages 347-369, March.
    4. Olesia V. Bubnovskaia & Norris Krueger & Ivan I. Gutorov, 2022. "Cognitive flexibility as a decision-making factor in entrepreneurship," Upravlenets, Ural State University of Economics, vol. 13(1), pages 2-19, March.
    5. Park, Hyun Joon & Francisco, Sara Chari & Pang, M. Rosemary & Peng, Lulu & Chi, Guangqing, 2023. "Exposure to anti-Black Lives Matter movement and obesity of the Black population," Social Science & Medicine, Elsevier, vol. 316(C).
    6. Marie Madeleine Meurer & Matthias Waldkirch & Peter Kalum Schou & Eliane Léontine Bucher & Katrin Burmeister-Lamp, 2022. "Digital affordances: how entrepreneurs access support in online communities during the COVID-19 pandemic," Small Business Economics, Springer, vol. 58(2), pages 637-663, February.
    7. Xueling Li & Xiaoyan Zhang & Yuan Liu & Yuanying Mi & Yong Chen, 2022. "The impact of artificial intelligence on users' entrepreneurial activities," Systems Research and Behavioral Science, Wiley Blackwell, vol. 39(3), pages 597-608, May.
    8. Reher, Leonie & Runst, Petrik & Thomä, Jörg, 2022. "Personality and regional innovativeness: An empirical analysis of German patent data," ifh Working Papers 39/2022, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    9. Ljunge, Martin & Stenkula, Mikael, 2021. "Fertile soil for intrapreneurship: impartial institutions and human capital," Journal of Institutional Economics, Cambridge University Press, vol. 17(3), pages 489-508, June.
    10. Steve J. Bickley & Alison Macintyre & Benno Torgler, 2021. "Artificial Intelligence and Big Data in Sustainable Entrepreneurship," CREMA Working Paper Series 2021-11, Center for Research in Economics, Management and the Arts (CREMA).
    11. Hannigan, Timothy R. & Briggs, Anthony R. & Valadao, Rodrigo & Seidel, Marc-David L. & Jennings, P. Devereaux, 2022. "A new tool for policymakers: Mapping cultural possibilities in an emerging AI entrepreneurial ecosystem," Research Policy, Elsevier, vol. 51(9).
    12. George Amoako & Paul Omari & Desmond K. Kumi & George Cudjoe Agbemabiase & George Asamoah, 2021. "Conceptual Framework—Artificial Intelligence and Better Entrepreneurial Decision-Making: The Influence of Customer Preference, Industry Benchmark, and Employee Involvement in an Emerging Market," JRFM, MDPI, vol. 14(12), pages 1-20, December.

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    More about this item

    Keywords

    Big data; Artificial intelligence; Entrepreneurship; Counties; USA; Social media; Psychological traits; Personality; Big five; Twitter;
    All these keywords.

    JEL classification:

    • C00 - Mathematical and Quantitative Methods - - General - - - General
    • C55 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Large Data Sets: Modeling and Analysis
    • E71 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on the Macro Economy
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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