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Organizational sponsorship and the economics of place: How regional urbanization and localization shape incubator outcomes

Author

Listed:
  • Alejandro Amezcua

    (Syracuse University)

  • Tiago Ratinho

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - ULCO - Université du Littoral Côte d'Opale - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

  • Lawrence Plummer

    (UWO - University of Western Ontario)

  • Parvathi Jayamohan

    (Salem State University)

Abstract

Organizational sponsorship impacts new venture emergence and survival prospects by shaping the relationship between new ventures and their surrounding environment. While extant literature offers an explanation as to why heterogeneity in the effectiveness of sponsorship emerges based on the sponsor's characteristics, current theorizing largely overlooks how sponsorship interacts with local economic conditions. This study introduces insights from urban economics to extend organizational sponsorship theory by showing how different types of agglomeration economies affect the effectiveness of organizational sponsorship. We test our hypotheses with a comprehensive database that includes over 46,000 sponsored and non-sponsored firms in the years 1997–2007. Our results reveal organizational sponsorship delays new venture exit when urbanization levels are low, localization is low, and both urbanization and localization are high.

Suggested Citation

  • Alejandro Amezcua & Tiago Ratinho & Lawrence Plummer & Parvathi Jayamohan, 2020. "Organizational sponsorship and the economics of place: How regional urbanization and localization shape incubator outcomes," Post-Print hal-02998376, HAL.
    • Handle: RePEc:hal:journl:hal-02998376
    DOI: 10.1016/j.jbusvent.2019.105967
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    Cited by:

    1. Han, Shaojie & Su, Jingqin & Lyu, Yibo & Liu, Qing, 2022. "How do business incubators govern incubation relationships with different new ventures?," Technovation, Elsevier, vol. 116(C).
    2. Manhart, Niklas, 2022. "The Mission Comes First: Exploring the Mechanisms of Organizational Sponsorship for the Acceleration of Social Start-Ups," Junior Management Science (JUMS), Junior Management Science e. V., vol. 7(2), pages 289-337.
    3. Kaur, Manmeet & Ahmad, Wasim & Hari, K.S. & Kattumuri, Ruth, 2024. "FinTech entrepreneurial ecosystem in India: Role of incubators and accelerators," Global Finance Journal, Elsevier, vol. 60(C).
    4. Abootorabi, Hooman & Wiklund, Johan & Johnson, Alan R. & Miller, Cameron D., 2021. "A holistic approach to the evolution of an entrepreneurial ecosystem: An exploratory study of academic spin-offs," Journal of Business Venturing, Elsevier, vol. 36(5).
    5. Atzmon, Morane Batya & Vanderstraeten, Johanna & Albers, Sascha, 2022. "Small-firm growth-enabling capabilities: A framework for young technology-based firms," Technovation, Elsevier, vol. 117(C).
    6. Schnell, Lukas & Berger, Elisabeth S.C., 2025. "Sharing and exchange dynamics in entrepreneurial spaces: a systematic literature review and conceptualization," Technological Forecasting and Social Change, Elsevier, vol. 218(C).
    7. Amandine Maus, 2022. "Construire et transmettre de la légitimité. Le cas de deux programmes d'accompagnement de l'économie sociale et solidaire," Post-Print hal-03864847, HAL.
    8. Paige Clayton, 2024. "Different outcomes for different founders? Local organizational sponsorship and entrepreneurial finance," Small Business Economics, Springer, vol. 62(1), pages 23-62, January.
    9. Manning, Stephan & Vavilov, Stanislav, 2023. "Global development agenda meets local opportunities: The rise of development-focused entrepreneurship support," Research Policy, Elsevier, vol. 52(7).
    10. Hackler, Darrene & Harpel, Ellen, 2021. "Incentives for Entrepreneurial Firms and Technical and Policy Appendices," MPRA Paper 109173, University Library of Munich, Germany.
    11. Lindelöf, Peter & Hellberg, Roland, 2023. "Incubation - An evolutionary process," Technovation, Elsevier, vol. 124(C).
    12. Daizhong Tang & Mengyuan Mao & Jiangang Shi & Wenwen Hua, 2021. "The Spatio-Temporal Analysis of Urban-Rural Coordinated Development and Its Driving Forces in Yangtze River Delta," Land, MDPI, vol. 10(5), pages 1-21, May.
    13. Farzana Chowdhury & David B. Audretsch, 2024. "Paradoxes of accelerator programs and new venture performance: Do varieties of experiences make a difference?," Small Business Economics, Springer, vol. 62(1), pages 381-409, January.
    14. Amba Maria Erkelens & Neil Aaron Thompson & Dominic Chalmers, 2024. "The dynamic construction of an incubation context: a practice theory perspective," Small Business Economics, Springer, vol. 62(2), pages 583-605, February.
    15. Amandine Maus, 2024. "Processus de légitimation d’incubateurs et contribution des membres de l’organisation," Post-Print hal-04753133, HAL.
    16. Brian J. Bergman & Jeffery S. McMullen, 2022. "Helping Entrepreneurs Help Themselves: A Review and Relational Research Agenda on Entrepreneurial Support Organizations," Entrepreneurship Theory and Practice, , vol. 46(3), pages 688-728, May.
    17. Laura Lecluyse & Mirjam Knockaert & Annelore Huyghe, 2023. "It is not because it is offered that it is used: an investigation into firm-level determinants of use intensity of buffering services in science parks," Small Business Economics, Springer, vol. 61(1), pages 85-104, June.
    18. Li, Yonghui & Guo, Hai & Wang, Donghan, 2024. "Achieving optimal distinctiveness in incubation markets: Hierarchy of needs perspective," Technovation, Elsevier, vol. 136(C).
    19. Amandine Maus, 2024. "Finding My Place In The Collective: How The Individual Level Contributes To The Incubator'S Legitimation Process," Post-Print hal-04649151, HAL.

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