The role of large corporations in entrepreneurial ecosystems – a case study of Munich

Sarah Herzog, Colin Mason and Michaela Hruskova

European Planning Studies, 2024, vol. 32, issue 6, 1295-1317

Abstract: A critical omission in research on entrepreneurial ecosystems is the role of large firms. It is claimed that they are critical actors. However, the current consensus – which suggests that their effects are entirely beneficial – is superficial. We present evidence from a case study of Munich, a city that combines an emerging ecosystem with a strong corporate sector, which indicates that the reality is much more nuanced. We confirm the resource-enriching effects of corporations. However, we also identify adverse impacts on the entrepreneurial culture that arise from their conservative and risk-avoiding mindset.Corporations are one of the most significant actors in entrepreneurial ecosystems. They are widely regarded as having a positive influence on local entrepreneurial activity. However, our study of Munich shows that they also have adverse effects, especially on entrepreneurial culture. We find that although corporations provide valuable resources into the entrepreneurial ecosystem, their conservative mindset, self-interested behaviour, and siloed activities negatively impact local entrepreneurial culture and undermine the community aspect of entrepreneurship. These adverse effects could be mitigated by corporations adopting agile practices when collaborating with disruptive start-ups, developing them into future business partners rather than a source of technical and business talent, and building ecosystem-wide networks with other actors. It is therefore essential that corporations are part of the leadership group of entrepreneurial ecosystems.

Date: 2024
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DOI: 10.1080/09654313.2023.2301295

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