How Does Regional Social Capital Structure the Relationship Between Entrepreneurship, Ethnic Diversity, and Residential Segregation?

Arkangel M. Cordero and Alexander C. Lewis

Entrepreneurship Theory and Practice, 2024, vol. 48, issue 3, 788-825

Abstract: The extant theory posits that ethno-racial diversity promotes entrepreneurship by increasing the novelty of information and perspectives available for recombination in a region. This view presupposes the flow of novel information among potential entrepreneurs. Yet, we know comparatively little about how regional social structures (e.g., collective social capital) that affect information flows condition this relationship. We build on the sociological literature to theorize how the interplay between collective social capital and residential segregation moderates the relationship between ethno-racial diversity and entrepreneurship. We test, and find empirical support for, our hypotheses among all registered new ventures started in the United States between 1990 and 2018.

Keywords: sociology; social capital; organization theory; entrepreneurship; knowledge spillover theory (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:sae:entthe:v:48:y:2024:i:3:p:788-825

DOI: 10.1177/10422587231198450

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