Defining networks in entrepreneurial ecosystems: the openness of ecosystems

Daniel Prokop () and Piers Thompson
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Daniel Prokop: Cardiff University

Small Business Economics, 2023, vol. 61, issue 2, No 4, 517-538

Abstract: Abstract The paper draws on network theory to employ concepts of homophily and heterophily to investigate whether the presence of familiar, unfamiliar or a mix of actors in an entrepreneurial ecosystem is related to start-up rates. The empirical focus of this study is on 81 UK university entrepreneurial ecosystems and their outputs in terms of academic spinoff companies. The paper finds that university entrepreneurial ecosystems with access to actors of predominantly heterophilious character are associated with higher spinoff start-up rates. It is concluded that in stimulating the development of successful entrepreneurial ecosystems there is a clear need to focus on their openness to heterophilious actors, inclusive of other ecosystems. This is especially important in the context of network lock-in that may arise from dependence on homophilious ties. Plain English Summary Entrepreneurial ecosystems characterised by openness to diverse actors generate more firms, as shown in a study focusing on 81 UK university entrepreneurial ecosystems. The paper studies network character of actors in entrepreneurial ecosystems and whether this character is associated with start-up rates. Specifically, it focuses on the familiarity of actors, inspecting whether it is related to greater venture formations. In so doing, the study examines 81 UK university entrepreneurial ecosystems. It finds that university entrepreneurial ecosystems that generate more ventures are associated with having a presence of actors of unfamiliar character, drawing attention to the openness of ecosystems’ networks. The key implication of the study is in recognising the link between the ecosystem’s openness to diverse actors and its entrepreneurial performance.

Keywords: Networks; Heterophily; Entrepreneurship; Spinoff companies; Commercialisation; Entrepreneurial ecosystems (search for similar items in EconPapers)
JEL-codes: D85 L14 L26 O31 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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DOI: 10.1007/s11187-022-00710-w

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