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Gimme shelter or fade away: the impact of regional entrepreneurial ecosystem quality on venture survival

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  • Siddharth Vedula
  • Phillip H Kim

Abstract

Our study addresses a popular question in entrepreneurship research—to what extent does the quality of a region’s entrepreneurial ecosystem matter for venture survival? To tackle this question, we created a regional entrepreneurial ecosystem quality index based on five key characteristics: supportive entrepreneurial culture, access to finance, availability of human capital, innovation capacity, and formal support organizations. We analyze 301 United States Metropolitan Statistical Areas for these characteristics and measure the aggregated contextual influence on venture survival within these regions over time. In addition to analyzing the relationship between this index and venture survival, we also consider the moderating role of founders’ experience on survival outcomes. Our findings confirm that, in general, higher quality ecosystems shelter ventures, while ventures in weaker ecosystems are more likely to fade away and fail. However, for serial entrepreneurs, we find that ecosystem quality has a much smaller impact on venture survival.

Suggested Citation

  • Siddharth Vedula & Phillip H Kim, 2019. "Gimme shelter or fade away: the impact of regional entrepreneurial ecosystem quality on venture survival," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(4), pages 827-854.
    • Handle: RePEc:oup:indcch:v:28:y:2019:i:4:p:827-854.
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    File URL: http://hdl.handle.net/10.1093/icc/dtz032
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    Cited by:

    1. Jianhong Zhang & Désirée Gorp & Henk Kievit, 2023. "Digital technology and national entrepreneurship: An ecosystem perspective," The Journal of Technology Transfer, Springer, vol. 48(3), pages 1077-1105, June.
    2. Daniel Sunghwan Cho & Paul Ryan & Giulio Buciuni, 2022. "Evolutionary entrepreneurial ecosystems: a research pathway," Small Business Economics, Springer, vol. 58(4), pages 1865-1883, April.
    3. Alberto Bettanti & Antonella Lanati & Alessandro Missoni, 2022. "Biopharmaceutical innovation ecosystems: a stakeholder model and the case of Lombardy," The Journal of Technology Transfer, Springer, vol. 47(6), pages 1948-1973, December.
    4. Bernd Wurth & Erik Stam & Ben Spigel, 2022. "Toward an Entrepreneurial Ecosystem Research Program," Entrepreneurship Theory and Practice, , vol. 46(3), pages 729-778, May.
    5. Marina Van Geenhuizen & Razieh Nejabat, 2021. "Municipalities’ Policy on Innovation and Market Introduction in Sustainable Energy: A Focus on Local Young Technology Firms," Energies, MDPI, vol. 14(4), pages 1-18, February.
    6. Razieh Nejabat & Marina Van Geenhuizen, 2019. "Entrepreneurial Risk-Taking in Sustainable Energy: University Spin-Off Firms and Market Introduction in Northwest Europe," Sustainability, MDPI, vol. 11(24), pages 1-23, December.
    7. Shi, Xianwei & Shi, Yongjiang, 2022. "Unpacking the process of resource allocation within an entrepreneurial ecosystem," Research Policy, Elsevier, vol. 51(9).
    8. Coad, Alex & Srhoj, Stjepan, 2023. "Entrepreneurial ecosystems and regional persistence of high growth firms: A ‘broken clock’ critique," Research Policy, Elsevier, vol. 52(6).
    9. Prokop, Daniel, 2021. "University entrepreneurial ecosystems and spinoff companies: Configurations, developments and outcomes," Technovation, Elsevier, vol. 107(C).
    10. Junping Yang & Mengjie Zhang, 2021. "The value of entrepreneurship and the entrepreneurial ecosystem: Evidence from 265 cities in China," Growth and Change, Wiley Blackwell, vol. 52(4), pages 2256-2271, December.
    11. Rocha, Augusto & Brown, Ross & Mawson, Suzanne, 2022. "Reprint of: Capturing conversations in entrepreneurial ecosystems," Research Policy, Elsevier, vol. 51(9).
    12. Quoc Hoang Thai & Khuong Ngoc Mai & Tung Thanh Do, 2023. "An Evolution of Entrepreneurial Ecosystem Studies: A Systematic Literature Review and Future Research Agenda," SAGE Open, , vol. 13(1), pages 21582440231, March.
    13. Kapturkiewicz, Agata, 2022. "Varieties of Entrepreneurial Ecosystems: A comparative study of Tokyo and Bangalore," Research Policy, Elsevier, vol. 51(9).
    14. Xie, Zhimin & Wang, Xia & Xie, Lingmin & Duan, Kaifeng, 2021. "Entrepreneurial ecosystem and the quality and quantity of regional entrepreneurship: A configurational approach," Journal of Business Research, Elsevier, vol. 128(C), pages 499-509.
    15. Yating Li & Martin Kenney & Donald Patton & Abraham Song, 2023. "Entrepreneurial ecosystems and industry knowledge: does the winning region take all?," Small Business Economics, Springer, vol. 61(1), pages 153-172, June.
    16. Riccardo Gianluigi Serio & Maria Michela Dickson & Diego Giuliani & Giuseppe Espa, 2020. "Green Production as a Factor of Survival for Innovative Startups: Evidence from Italy," Sustainability, MDPI, vol. 12(22), pages 1-12, November.
    17. Rocha, Augusto & Brown, Ross & Mawson, Suzanne, 2021. "Capturing conversations in entrepreneurial ecosystems," Research Policy, Elsevier, vol. 50(9).
    18. Liu, Jiali & Zhou, Haibo & Chen, Feng & Yu, Jiang, 2022. "The coevolution of innovation ecosystems and the strategic growth paths of knowledge-intensive enterprises: The case of China’s integrated circuit design industry," Journal of Business Research, Elsevier, vol. 144(C), pages 428-439.
    19. Tore Frimanslund, 2022. "Financial Entrepreneurial Ecosystems: An Analysis of Urban and Rural Regions of Norway," International Journal of Global Business and Competitiveness, Springer, vol. 17(1), pages 24-39, June.
    20. Daniel Prokop & Piers Thompson, 2023. "Defining networks in entrepreneurial ecosystems: the openness of ecosystems," Small Business Economics, Springer, vol. 61(2), pages 517-538, August.
    21. Leendertse, Jip & Schrijvers, Mirella & Stam, Erik, 2022. "Measure Twice, Cut Once: Entrepreneurial Ecosystem Metrics," Research Policy, Elsevier, vol. 51(9).
    22. Fasano, Francesco & Rocca, Maurizio La & Cariola, Alfio & Passarelli, Mariacarmela, 2023. "Banking relationship and research spin-offs’ life cycle: The Italian experience," Research in International Business and Finance, Elsevier, vol. 65(C).
    23. Liu, Yipeng, 2020. "The micro-foundations of global business incubation: Stakeholder engagement and strategic entrepreneurial partnerships," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    24. Maksim Belitski & Ana-Maria Grigore & Anca Bratu, 2021. "Political entrepreneurship: entrepreneurship ecosystem perspective," International Entrepreneurship and Management Journal, Springer, vol. 17(4), pages 1973-2004, December.
    25. Helen Lawton Smith & Jonathan Potter, 2022. "Applying the entrepreneurial ecosystem concept to regional entrepreneurship policy analysis – a critique," Working Papers 61, Birkbeck Centre for Innovation Management Research, revised Jun 2022.

    More about this item

    JEL classification:

    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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