IDEAS home Printed from https://ideas.repec.org/a/spr/anresc/v72y2024i2d10.1007_s00168-022-01203-0.html
   My bibliography  Save this article

Entrepreneurial ecosystems in conflict regions: evidence from Ukraine

Author

Listed:
  • Maksim Belitski

    (University of Reading
    ICD business School)

  • Nataliia Cherkas

    (Kyiv National Economic University)

  • Olena Khlystova

    (University of Reading)

Abstract

Entrepreneurship is a productive force of innovation and economic development. However, in post-conflict regions, there is a greater challenge in allocating entrepreneurial talent to productive entrepreneurship. In this study, we examine the entrepreneurship ecosystem, which is built on the “bottom-up” principles to understand whether its pillars can facilitate productive entrepreneurship in two Ukrainian regions shaken by multiple revolutions and regime change. We introduce a model that puts entrepreneurial conditions in cities and formal institutional changes to a competitive test. Building on the regional entrepreneurship literature, we perform an empirical study in a developing country to reveal what drives productive entrepreneurship in post-conflict regions with entrepreneurship culture, formal networks, debt and equity financing emerging as important determinants of productive entrepreneurship. The effect of formal institutions is significant but highly correlated with rent-seeking behavior of government and corruption. Our analysis suggests that the entrepreneurial conditions in regions focusing on the bottom-up processes of supporting entrepreneurship should work better to enhance productive entrepreneurship activity in a post-conflict region.

Suggested Citation

  • Maksim Belitski & Nataliia Cherkas & Olena Khlystova, 2024. "Entrepreneurial ecosystems in conflict regions: evidence from Ukraine," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 72(2), pages 355-376, February.
    • Handle: RePEc:spr:anresc:v:72:y:2024:i:2:d:10.1007_s00168-022-01203-0
    DOI: 10.1007/s00168-022-01203-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s00168-022-01203-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s00168-022-01203-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Maryann Feldman & Ted D. Zoller, 2012. "Dealmakers in Place: Social Capital Connections in Regional Entrepreneurial Economies," Regional Studies, Taylor & Francis Journals, vol. 46(1), pages 23-37, June.
    2. Davis, Christopher Mark (Дэвис, Кристофер Марк), 2016. "The Ukraine Conflict, Economic-Military Power Balances and Economic Sanctions [Конфликт На Украине: Соотношение Военно-Политических Сил И Экономические Санкции]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 4, pages 196-216, August.
    3. Howells, Jeremy, 2006. "Intermediation and the role of intermediaries in innovation," Research Policy, Elsevier, vol. 35(5), pages 715-728, June.
    4. Roundy, Philip T. & Bradshaw, Mike & Brockman, Beverly K., 2018. "The emergence of entrepreneurial ecosystems: A complex adaptive systems approach," Journal of Business Research, Elsevier, vol. 86(C), pages 1-10.
    5. Erik Stam, 2015. "Entrepreneurial Ecosystems and Regional Policy: A Sympathetic Critique," European Planning Studies, Taylor & Francis Journals, vol. 23(9), pages 1759-1769, September.
    6. Ben Spigel, 2017. "The Relational Organization of Entrepreneurial Ecosystems," Entrepreneurship Theory and Practice, , vol. 41(1), pages 49-72, January.
    7. Gerber, Anke & Wichardt, Philipp C., 2009. "Providing public goods in the absence of strong institutions," Journal of Public Economics, Elsevier, vol. 93(3-4), pages 429-439, April.
    8. David B. Audretsch & Maksim Belitski, 2021. "Towards an entrepreneurial ecosystem typology for regional economic development: the role of creative class and entrepreneurship," Regional Studies, Taylor & Francis Journals, vol. 55(4), pages 735-756, April.
    9. Daron Acemoglu & James A. Robinson, 2008. "Persistence of Power, Elites, and Institutions," American Economic Review, American Economic Association, vol. 98(1), pages 267-293, March.
    10. Massimo G. Colombo & Giovanni Battista Dagnino & Erik E. Lehmann & MariPaz Salmador, 2019. "The governance of entrepreneurial ecosystems," Small Business Economics, Springer, vol. 52(2), pages 419-428, February.
    11. Michael Fritsch & Michael Wyrwich, 2018. "Regional knowledge, entrepreneurial culture, and innovative start-ups over time and space―an empirical investigation," Small Business Economics, Springer, vol. 51(2), pages 337-353, August.
    12. Erkko Autio & Saurav Pathak & Karl Wennberg, 2013. "Consequences of cultural practices for entrepreneurial behaviors," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 44(4), pages 334-362, May.
    13. Estrin, Saul & Korosteleva, Julia & Mickiewicz, Tomasz, 2013. "Which institutions encourage entrepreneurial growth aspirations?," Journal of Business Venturing, Elsevier, vol. 28(4), pages 564-580.
    14. Boso, Nathaniel & Story, Vicky M. & Cadogan, John W., 2013. "Entrepreneurial orientation, market orientation, network ties, and performance: Study of entrepreneurial firms in a developing economy," Journal of Business Venturing, Elsevier, vol. 28(6), pages 708-727.
    15. Méon, Pierre-Guillaume & Weill, Laurent, 2010. "Is Corruption an Efficient Grease?," World Development, Elsevier, vol. 38(3), pages 244-259, March.
    16. Pierre-Guillaume Méon & Khalid Sekkat, 2005. "Does corruption grease or sand the wheels of growth?," Public Choice, Springer, vol. 122(1), pages 69-97, January.
    17. Garry D. Bruton & David Ahlstrom & Krzysztof Obloj, 2008. "Entrepreneurship in Emerging Economies: Where Are We Today and Where Should the Research Go in the Future," Entrepreneurship Theory and Practice, , vol. 32(1), pages 1-14, January.
    18. Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1991. "The Allocation of Talent: Implications for Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 503-530.
    19. Autio, Erkko & Kenney, Martin & Mustar, Philippe & Siegel, Don & Wright, Mike, 2014. "Entrepreneurial innovation: The importance of context," Research Policy, Elsevier, vol. 43(7), pages 1097-1108.
    20. David B. Audretsch & Maksim Belitski, 2017. "Entrepreneurial ecosystems in cities: establishing the framework conditions," The Journal of Technology Transfer, Springer, vol. 42(5), pages 1030-1051, October.
    21. Zoltan J. Acs & Saul Estrin & Tomasz Mickiewicz & László Szerb, 2018. "Entrepreneurship, institutional economics, and economic growth: an ecosystem perspective," Small Business Economics, Springer, vol. 51(2), pages 501-514, August.
    22. Ciszewska-Mlinarič, Mariola & Wójcik, Piotr & Obłój, Krzysztof, 2020. "Learning dynamics of rapidly internationalizing venture: Beyond the early stage of international growth in a CEE context," Journal of Business Research, Elsevier, vol. 108(C), pages 450-465.
    23. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
    24. Ross Brown & Colin Mason, 2017. "Looking inside the spiky bits: a critical review and conceptualisation of entrepreneurial ecosystems," Small Business Economics, Springer, vol. 49(1), pages 11-30, June.
    25. Sobel, Russell S., 2008. "Testing Baumol: Institutional quality and the productivity of entrepreneurship," Journal of Business Venturing, Elsevier, vol. 23(6), pages 641-655, November.
    26. Andrew Godley & Norbert Morawetz & Lebene Soga, 2021. "The complementarity perspective to the entrepreneurial ecosystem taxonomy," Small Business Economics, Springer, vol. 56(2), pages 723-738, February.
    27. Lyons Thomas S. & Alter Theodore R. & Audretsch David & Augustine Darline, 2012. "Entrepreneurship and Community: The Next Frontier of Entrepreneurship Inquiry," Entrepreneurship Research Journal, De Gruyter, vol. 2(1), pages 1-26, January.
    28. Aidis, Ruta & Estrin, Saul & Mickiewicz, Tomasz, 2008. "Institutions and entrepreneurship development in Russia: A comparative perspective," Journal of Business Venturing, Elsevier, vol. 23(6), pages 656-672, November.
    29. Volker H. Hoffmann & Thomas Trautmann & Jens Hamprecht, 2009. "Regulatory Uncertainty: A Reason to Postpone Investments? Not Necessarily," Journal of Management Studies, Wiley Blackwell, vol. 46(7), pages 1227-1253, November.
    30. Belitski, Maksim & Aginskaja, Anna & Marozau, Radzivon, 2019. "Commercializing university research in transition economies: Technology transfer offices or direct industrial funding?," Research Policy, Elsevier, vol. 48(3), pages 601-615.
    31. Pekka Stenholm & Zoltán J. Ács & Robert Wuebker, 2015. "Exploring country-level institutional arrangements on the rate and type of entrepreneurial activity," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 20, pages 387-404, Edward Elgar Publishing.
    32. Jafari Sadeghi, Vahid & Nkongolo-Bakenda, Jean-Marie & Anderson, Robert B. & Dana, Léo-Paul, 2019. "An institution-based view of international entrepreneurship: A comparison of context-based and universal determinants in developing and economically advanced countries," International Business Review, Elsevier, vol. 28(6), pages 1-1.
    33. Ute Stephan & Lorraine M Uhlaner, 2010. "Performance-based vs socially supportive culture: A cross-national study of descriptive norms and entrepreneurship," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(8), pages 1347-1364, October.
    34. Michael Fritsch & Michael Wyrwich, 2017. "Persistence of Regional Entrepreneurship: Causes, Effects, and Directions for Future Research," Jena Economics Research Papers 2017-003, Friedrich-Schiller-University Jena.
    35. Samila, Sampsa & Sorenson, Olav, 2010. "Venture capital as a catalyst to commercialization," Research Policy, Elsevier, vol. 39(10), pages 1348-1360, December.
    36. Mehlum, Halvor & Moene, Karl & Torvik, Ragnar, 2003. "Predator or prey?: Parasitic enterprises in economic development," European Economic Review, Elsevier, vol. 47(2), pages 275-294, April.
    37. Acemoglu, Daron, 1995. "Reward structures and the allocation of talent," European Economic Review, Elsevier, vol. 39(1), pages 17-33, January.
    38. Tatiana S. Manolova & Rangamohan V. Eunni & Bojidar S. Gyoshev, 2008. "Institutional Environments for Entrepreneurship: Evidence from Emerging Economies in Eastern Europe," Entrepreneurship Theory and Practice, , vol. 32(1), pages 203-218, January.
    39. David B. Audretsch & Maksim Belitski & Sameeksha Desai, 2019. "National Business Regulations and City Entrepreneurship in Europe: A Multilevel Nested Analysis," Entrepreneurship Theory and Practice, , vol. 43(6), pages 1148-1165, November.
    40. Inga Erina & Vladimir Shatrevich & Elina Gaile-Sarkane, 2017. "Impact of stakeholder groups on development of a regional entrepreneurial ecosystem," European Planning Studies, Taylor & Francis Journals, vol. 25(5), pages 755-771, May.
    41. Michael Fritsch & Alina Sorgner & Michael Wyrwich & Evguenii Zazdravnykh, 2019. "Historical shocks and persistence of economic activity: evidence on self-employment from a unique natural experiment," Regional Studies, Taylor & Francis Journals, vol. 53(6), pages 790-802, June.
    42. Davis, Christopher Mark (Дэвис, Кристофер Марк), 2016. "The Ukraine conflict, economic-military power balances and economic sanctions [Конфликт На Украине: Соотношение Военно-Политических Сил И Экономические Санкции]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 3, pages 7-29, August.
    43. Maksim Belitski & Farzana Chowdhury & Sameeksha Desai, 2016. "Taxes, corruption, and entry," Small Business Economics, Springer, vol. 47(1), pages 201-216, June.
    44. M. Sanders & U. Weitzel, 2013. "Misallocation of Entrepreneurial Talent in Postconflict Environments," Journal of Conflict Resolution, Peace Science Society (International), vol. 57(1), pages 41-64, February.
    45. László Szerb & Esteban Lafuente & Krisztina Horváth & Balázs Páger, 2019. "The relevance of quantity and quality entrepreneurship for regional performance: the moderating role of the entrepreneurial ecosystem," Regional Studies, Taylor & Francis Journals, vol. 53(9), pages 1308-1320, September.
    46. Christopher Mark Davis, 2016. "The Ukraine conflict, economic–military power balances and economic sanctions," Post-Communist Economies, Taylor & Francis Journals, vol. 28(2), pages 167-198, April.
    47. Ruta Aidis, 2003. "Officially Despised Yet Tolerated: Open-air Markets and Entrepreneurship in Post-socialist Countries," Post-Communist Economies, Taylor & Francis Journals, vol. 15(3), pages 461-473.
    48. Kiss, Andreea N. & Danis, Wade M. & Cavusgil, S. Tamer, 2012. "International entrepreneurship research in emerging economies: A critical review and research agenda," Journal of Business Venturing, Elsevier, vol. 27(2), pages 266-290.
    49. John Haltiwanger & Ron S. Jarmin & Javier Miranda, 2013. "Who Creates Jobs? Small versus Large versus Young," The Review of Economics and Statistics, MIT Press, vol. 95(2), pages 347-361, May.
    50. Maksim Belitski & Sameeksha Desai, 2016. "Creativity, entrepreneurship and economic development: city-level evidence on creativity spillover of entrepreneurship," The Journal of Technology Transfer, Springer, vol. 41(6), pages 1354-1376, December.
    51. Julia Korosteleva & Maksim Belitski, 2017. "Entrepreneurial dynamics and higher education institutions in the post-Communist world," Regional Studies, Taylor & Francis Journals, vol. 51(3), pages 439-453, March.
    52. Xaver Neumeyer & Susana C. Santos & Michael H. Morris, 2019. "Who is left out: exploring social boundaries in entrepreneurial ecosystems," The Journal of Technology Transfer, Springer, vol. 44(2), pages 462-484, April.
    53. Niels Bosma & Rolf Sternberg, 2014. "Entrepreneurship as an Urban Event? Empirical Evidence from European Cities," Regional Studies, Taylor & Francis Journals, vol. 48(6), pages 1016-1033, June.
    54. Erik Stam, 2018. "Measuring Entrepreneurial Ecosystems," International Studies in Entrepreneurship, in: Allan O'Connor & Erik Stam & Fiona Sussan & David B. Audretsch (ed.), Entrepreneurial Ecosystems, pages 173-197, Springer.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David Bruce Audretsch & Maksim Belitski & Georg Maximilian Eichler & Erich Schwarz, 2024. "Entrepreneurial ecosystems, institutional quality, and the unexpected role of the sustainability orientation of entrepreneurs," Small Business Economics, Springer, vol. 62(2), pages 503-522, February.
    2. 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.
    3. 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.
    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. Audretsch, David Bruce & Belitski, Maksim & Guerrero, Maribel, 2023. "Sustainable orientation management and institutional quality: Looking into European entrepreneurial innovation ecosystems," Technovation, Elsevier, vol. 124(C).
    6. Leendertse, Jip & Schrijvers, Mirella & Stam, Erik, 2022. "Measure Twice, Cut Once: Entrepreneurial Ecosystem Metrics," Research Policy, Elsevier, vol. 51(9).
    7. 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.
    8. Belitski, Maksim & Desai, Sameeksha, 2024. "Filtering or facilitating productive entrepreneurship?," Technological Forecasting and Social Change, Elsevier, vol. 206(C).
    9. Zhe Cao & Xianwei Shi, 2021. "A systematic literature review of entrepreneurial ecosystems in advanced and emerging economies," Small Business Economics, Springer, vol. 57(1), pages 75-110, June.
    10. Daniel L. Bennett, 2021. "Local economic freedom and creative destruction in America," Small Business Economics, Springer, vol. 56(1), pages 333-353, January.
    11. Bessagnet, Arnauld & Crespo, Joan & Vicente, Jérôme, 2021. "Unraveling the multi-scalar and evolutionary forces of entrepreneurial ecosystems: A historical event analysis applied to IoT Valley," Technovation, Elsevier, vol. 108(C).
    12. Theodoraki, Christina & Dana, Léo-Paul & Caputo, Andrea, 2022. "Building sustainable entrepreneurial ecosystems: A holistic approach," Journal of Business Research, Elsevier, vol. 140(C), pages 346-360.
    13. Muhammad Faraz Riaz & João Leitão & Uwe Cantner, 2022. "Measuring the efficiency of an entrepreneurial ecosystem at municipality level: does institutional transparency play a moderating role?," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 12(1), pages 151-176, March.
    14. repec:ekd:006356:6689 is not listed on IDEAS
    15. Audretsch, David B. & Belitski, Maksim & Caiazza, Rosa & Desai, Sameeksha, 2022. "The role of institutions in latent and emergent entrepreneurship," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    16. Maksim Belitski & Pınar Büyükbalci, 2021. "Uncharted waters of the entrepreneurial ecosystems research: Comparing Greater Istanbul and Reading ecosystems," Growth and Change, Wiley Blackwell, vol. 52(2), pages 727-750, June.
    17. Maksim Belitski & Rosa Caiazza & Erik E. Lehmann, 2021. "Knowledge frontiers and boundaries in entrepreneurship research," Small Business Economics, Springer, vol. 56(2), pages 521-531, February.
    18. Rocha, Augusto & Brown, Ross & Mawson, Suzanne, 2021. "Capturing conversations in entrepreneurial ecosystems," Research Policy, Elsevier, vol. 50(9).
    19. Allan O’Connor & David Audretsch, 2023. "Regional entrepreneurial ecosystems: learning from forest ecosystems," Small Business Economics, Springer, vol. 60(3), pages 1051-1079, March.
    20. Fahimeh Khatami & Veronica Scuotto & Norris Krueger & Valter Cantino, 2022. "The influence of the entrepreneurial ecosystem model on sustainable innovation from a macro-level lens," International Entrepreneurship and Management Journal, Springer, vol. 18(4), pages 1419-1451, December.
    21. Uwe Cantner & James A. Cunningham & Erik E. Lehmann & Matthias Menter, 2021. "Entrepreneurial ecosystems: a dynamic lifecycle model," Small Business Economics, Springer, vol. 57(1), pages 407-423, June.

    More about this item

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • 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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:anresc:v:72:y:2024:i:2:d:10.1007_s00168-022-01203-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.