An Institutional Theory Approach to Improve Planning for Innovation and Entrepreneurship Ecosystems in Developing Economies
Document Type
Article
Publication Date
2018
Abstract
In the present article, the concept of institutional embeddedness is suggested as apotential supplement to the existing literature on entrepreneurial ecosystems in devel-oping economies. Specifically, the present article postulates that the benefits of avibrant entrepreneurship ecosystem can be thwarted by the failure of country-levelinstitutions to constructively ‘reach down’ to embed with local entrepreneurship com-munities. Given the relative shortages of resources and inherent challenges in devel-oping economies, government initiatives may instead adopt a top–down approachin selecting candidates for receipt of support. This would be a mistake. The govern-ment effort to identify and select early-stage winners may divert otherwise availableendogenous resources away from the broad development of naturally occurring localentrepreneurial ecosystems. Additionally, a top–down approach may miss opportuni-ties for the coordination of additional resources separately existing at the local level.For these reasons, the present article suggests that one challenge in the develop-ment of entrepreneurship ecosystems in developing economies is successfully embed-ding national institutions into emergent entrepreneurship ecosystems. In addressingthis premise, the article first briefly covers the existing literature on entrepreneurialecosystems. With this as a backdrop, the article next introduces institutional theoryand embeddedness as it relates to entrepreneurial ecosystems within developingeconomies. During this discussion, it is observed that existing entrepreneurial ecosystems may constitute local institutions in their own right with whom national institutions can integrate. Issues regarding measurement, methodology, discussion andconclusions are left for future research
Publication Title
KnE Social Sciences
Volume
2018
First Page
122
Recommended Citation
Gaughan, Patrick H.; Javalgi, Rajshekhar Raj G; and Young, Robert B., "An Institutional Theory Approach to Improve Planning for Innovation and Entrepreneurship Ecosystems in Developing Economies" (2018). Akron Law Faculty Publications. 282.
https://ideaexchange.uakron.edu/ua_law_publications/282
