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Innovation finance ecosystems for entrepreneurial firms: A conceptual model and research propositions

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  • Haider Alvi, Farzad
  • Ulrich, Klaus

Abstract

This paper presents a conceptual model for examining the matching of entrepreneurial firms and sources of finance under conditions of innovation. The model applies to entrepreneurial ecosystems, typically the site for studying venture capital investment in technology start-ups. By delimiting ecosystems along sectoral and temporal dimensions, the model considers a diversity of industry sectors and a diversity of funders, across the early, growth, and mature stages of a firm. The conceptual model suggests that where there might appear to be funding gaps, there could instead be overlaps. Based on the sectoral and temporal dimensions, research propositions are formulated. These propositions outline a research agenda that examines the relationship between innovation and sectoral and temporal dimensions, the impact of innovation on firms and funders, the role of reinvestment into the ecosystem as the lifeblood for a self-reproducing healthy ecosystem, and the possible geographic limitations of ecosystem models.

Suggested Citation

  • Haider Alvi, Farzad & Ulrich, Klaus, 2023. "Innovation finance ecosystems for entrepreneurial firms: A conceptual model and research propositions," Journal of Business Research, Elsevier, vol. 156(C).
    • Handle: RePEc:eee:jbrese:v:156:y:2023:i:c:s0148296322009158
    DOI: 10.1016/j.jbusres.2022.113450
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    3. Mayank Joshipura & Rim El Khoury & Muneer M. Alshater, 2025. "ICOs conceptual unveiled: scholarly review of an entrepreneurial finance innovation," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 11(1), pages 1-47, December.
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    7. Ross Brown & Augusto Rocha & Haoran Sun & Marc Cowling, 2025. "Unpacking the money-distance nexus: mapping the spatial configuration of exogenous entrepreneurial finance across UK entrepreneurial ecosystems," Small Business Economics, Springer, vol. 65(3), pages 1501-1515, October.
    8. Bansal, Sanchita & Kumar, Satish & Ali, Searat & Singh, Shifali & Nangia, Priya & Bamel, Umesh, 2025. "Harnessing digital finance for sustainability: An integrative review and research agenda," Research in International Business and Finance, Elsevier, vol. 74(C).

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