[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v156y2023ics0148296322009158.html
   My bibliography  Save this article

Innovation finance ecosystems for entrepreneurial firms: A conceptual model and research propositions

Author

Listed:
  • Haider Alvi, Farzad
  • Ulrich, Klaus
Abstract
This paper presents a conceptual model for examining the matching of entrepreneurial firms and sources of finance under conditions of innovation. The model applies to entrepreneurial ecosystems, typically the site for studying venture capital investment in technology start-ups. By delimiting ecosystems along sectoral and temporal dimensions, the model considers a diversity of industry sectors and a diversity of funders, across the early, growth, and mature stages of a firm. The conceptual model suggests that where there might appear to be funding gaps, there could instead be overlaps. Based on the sectoral and temporal dimensions, research propositions are formulated. These propositions outline a research agenda that examines the relationship between innovation and sectoral and temporal dimensions, the impact of innovation on firms and funders, the role of reinvestment into the ecosystem as the lifeblood for a self-reproducing healthy ecosystem, and the possible geographic limitations of ecosystem models.

Suggested Citation

  • Haider Alvi, Farzad & Ulrich, Klaus, 2023. "Innovation finance ecosystems for entrepreneurial firms: A conceptual model and research propositions," Journal of Business Research, Elsevier, vol. 156(C).
    • Handle: RePEc:eee:jbrese:v:156:y:2023:i:c:s0148296322009158
    DOI: 10.1016/j.jbusres.2022.113450
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296322009158
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2022.113450?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. N. Berger, Allen & F. Udell, Gregory, 1998. "The economics of small business finance: The roles of private equity and debt markets in the financial growth cycle," Journal of Banking & Finance, Elsevier, vol. 22(6-8), pages 613-673, August.
    2. Véronique Bessière & Eric Stéphany & Peter Wirtz, 2020. "Crowdfunding, business angels, and venture capital: an exploratory study of the concept of the funding trajectory," Venture Capital, Taylor & Francis Journals, vol. 22(2), pages 135-160, June.
    3. McMullen, Jeffery S., 2018. "Organizational hybrids as biological hybrids: Insights for research on the relationship between social enterprise and the entrepreneurial ecosystem," Journal of Business Venturing, Elsevier, vol. 33(5), pages 575-590.
    4. Roundy, Philip T. & Bradshaw, Mike & Brockman, Beverly K., 2018. "The emergence of entrepreneurial ecosystems: A complex adaptive systems approach," Journal of Business Research, Elsevier, vol. 86(C), pages 1-10.
    5. Ben Spigel, 2017. "The Relational Organization of Entrepreneurial Ecosystems," Entrepreneurship Theory and Practice, , vol. 41(1), pages 49-72, January.
    6. Cumming, Douglas & Deloof, Marc & Manigart, Sophie & Wright, Mike, 2019. "New directions in entrepreneurial finance," Journal of Banking & Finance, Elsevier, vol. 100(C), pages 252-260.
    7. Samuel Kortum & Josh Lerner, 2000. "Assessing the Contribution of Venture Capital to Innovation," RAND Journal of Economics, The RAND Corporation, vol. 31(4), pages 674-692, Winter.
    8. Joern H. Block & Massimo G. Colombo & Douglas J. Cumming & Silvio Vismara, 2018. "New players in entrepreneurial finance and why they are there," Small Business Economics, Springer, vol. 50(2), pages 239-250, February.
    9. Daniel Sunghwan Cho & Paul Ryan & Giulio Buciuni, 2022. "Evolutionary entrepreneurial ecosystems: a research pathway," Small Business Economics, Springer, vol. 58(4), pages 1865-1883, April.
    10. Chen, Yan & Bellavitis, Cristiano, 2020. "Blockchain disruption and decentralized finance: The rise of decentralized business models," Journal of Business Venturing Insights, Elsevier, vol. 13(C).
    11. Zahra, Shaker A., 2021. "International entrepreneurship in the post Covid world," Journal of World Business, Elsevier, vol. 56(1).
    12. Paschen, Jeannette, 2017. "Choose wisely: Crowdfunding through the stages of the startup life cycle," Business Horizons, Elsevier, vol. 60(2), pages 179-188.
    13. Thomas J. Chemmanur & Michael B. Imerman & Harshit Rajaiya & Qianqian Yu, 2020. "Recent Developments In The Fintech Industry," Journal of Financial Management, Markets and Institutions (JFMMI), World Scientific Publishing Co. Pte. Ltd., vol. 8(01), pages 1-31, June.
    14. Cohen, Susan & Fehder, Daniel C. & Hochberg, Yael V. & Murray, Fiona, 2019. "The design of startup accelerators," Research Policy, Elsevier, vol. 48(7), pages 1781-1797.
    15. 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).
    16. Giovanni Dosi, 2000. "Finance, Innovation and Industrial Change," Chapters, in: Innovation, Organization and Economic Dynamics, chapter 21, pages 621-641, Edward Elgar Publishing.
    17. Theodoraki, Christina & Dana, Léo-Paul & Caputo, Andrea, 2022. "Building sustainable entrepreneurial ecosystems: A holistic approach," Journal of Business Research, Elsevier, vol. 140(C), pages 346-360.
    18. Jeffrey G. Covin & Dennis P. Slevin, 1991. "A Conceptual Model of Entrepreneurship as Firm Behavior," Entrepreneurship Theory and Practice, , vol. 16(1), pages 7-26, October.
    19. Robert J. Shiller, 2015. "Irrational Exuberance," Economics Books, Princeton University Press, edition 3, number 10421.
    20. Garrison Hongyu Song & Ajeet Jain, 2021. "In search of angels: the first bucket of gold for entrepreneurs," Studies in Economics and Finance, Emerald Group Publishing Limited, vol. 38(1), pages 126-148, January.
    21. Bing Xia & Ju'e Guo & Richard Y.K. Fung, 2018. "Quality investment timing by the startup and the established firm," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 39(3), pages 275-284, April.
    22. J. Piet Hausberg & Sabrina Korreck, 2020. "Business incubators and accelerators: a co-citation analysis-based, systematic literature review," The Journal of Technology Transfer, Springer, vol. 45(1), pages 151-176, February.
    23. Zoltan J. Acs & Erik Stam & David B. Audretsch & Allan O’Connor, 2017. "The lineages of the entrepreneurial ecosystem approach," Small Business Economics, Springer, vol. 49(1), pages 1-10, June.
    24. Allam Mohammed Hamdan & Reem Khamis & Ammar Abdulla Al Hawaj & Elisabetta Barone, 2020. "The mediation role of public governance in the relationship between entrepreneurship and economic growth," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 16(3), pages 316-333, January.
    25. Parisa Maroufkhani & Ralf Wagner & Wan Khairuzzaman Wan Ismail, 2018. "Entrepreneurial ecosystems: a systematic review," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing Limited, vol. 12(4), pages 545-564, July.
    26. Erik Stam & Andrew Ven, 2021. "Entrepreneurial ecosystem elements," Small Business Economics, Springer, vol. 56(2), pages 809-832, February.
    27. Aki Harima & Jan Harima & Jörg Freiling, 2021. "The injection of resources by transnational entrepreneurs: towards a model of the early evolution of an entrepreneurial ecosystem," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 33(1-2), pages 80-107, January.
    28. Stefano Bonini & Vincenzo Capizzi, 2019. "The role of venture capital in the emerging entrepreneurial finance ecosystem: future threats and opportunities," Venture Capital, Taylor & Francis Journals, vol. 21(2-3), pages 137-175, July.
    29. Michael G. Jacobides & Carmelo Cennamo & Annabelle Gawer, 2018. "Towards a theory of ecosystems," Strategic Management Journal, Wiley Blackwell, vol. 39(8), pages 2255-2276, August.
    30. Robin De Cock & Johan Bruneel & Annelies Bobelyn, 2020. "Making the lean start-up method work: The role of prior market knowledge," Journal of Small Business Management, Taylor & Francis Journals, vol. 58(5), pages 975-1002, September.
    31. Roundy, Philip T. & Brockman, Beverly K. & Bradshaw, Mike, 2017. "The resilience of entrepreneurial ecosystems," Journal of Business Venturing Insights, Elsevier, vol. 8(C), pages 99-104.
    32. repec:eme:sef000:sef-04-2020-0091 is not listed on IDEAS
    33. Allam Mohammed Hamdan & Reem Khamis & Ammar Abdulla Al Hawaj & Elisabetta Barone, 2020. "The mediation role of public governance in the relationship between entrepreneurship and economic growth," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 16(3), pages 316-333, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fahimeh Khatami & Enrico Cagno & Luboš Smrčka & Zoltan Rozsa, 2024. "Assessing the role of FinTech in entrepreneurial ecosystems at the international level," International Entrepreneurship and Management Journal, Springer, vol. 20(4), pages 3373-3402, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Theodoraki, Christina & Dana, Léo-Paul & Caputo, Andrea, 2022. "Building sustainable entrepreneurial ecosystems: A holistic approach," Journal of Business Research, Elsevier, vol. 140(C), pages 346-360.
    2. Fahimeh Khatami & Enrico Cagno & Luboš Smrčka & Zoltan Rozsa, 2024. "Assessing the role of FinTech in entrepreneurial ecosystems at the international level," International Entrepreneurship and Management Journal, Springer, vol. 20(4), pages 3373-3402, December.
    3. 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.
    4. Hans Rawhouser & Silvio Vismara & Nir Kshetri, 2024. "Blockchain and vulnerable entrepreneurial ecosystems," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 36(1-2), pages 10-35, January.
    5. Bernd Wurth & Erik Stam & Ben Spigel, 2022. "Toward an Entrepreneurial Ecosystem Research Program," Entrepreneurship Theory and Practice, , vol. 46(3), pages 729-778, May.
    6. Stephens, Simon & McLaughlin, Christopher & Ryan, Leah & Catena, Manuel & Bonner, Aisling, 2022. "Entrepreneurial ecosystems: Multiple domains, dimensions and relationships," Journal of Business Venturing Insights, Elsevier, vol. 18(C).
    7. Raushan Aman & Petri Ahokangas & Xiaotian Zhang, 2021. "Migrant women entrepreneurs and entrepreneurial ecosystems during an external shock: a case study from the healthcare sector in Kazakhstan," Asian Business & Management, Palgrave Macmillan, vol. 20(4), pages 518-548, September.
    8. Reis, Germano Glufke & Villar, Eduardo Guedes & Prado Gimenez, Fernando Antonio & Maiolino Molento, Carla Forte & Ferri, Priscila, 2022. "The interplay of entrepreneurial ecosystems and global value chains: Insights from the cultivated meat entrepreneurial ecosystem of Singapore," Technology in Society, Elsevier, vol. 71(C).
    9. Allan O’Connor & David Audretsch, 2023. "Regional entrepreneurial ecosystems: learning from forest ecosystems," Small Business Economics, Springer, vol. 60(3), pages 1051-1079, March.
    10. Luiza Ossowska & Dorota Janiszewska & Grzegorz Kwiatkowski, 2023. "The Entrepreneurship Ecosystem of Food Festivals—A Vendors’ Approach," Sustainability, MDPI, vol. 15(2), pages 1-19, January.
    11. Dionisio, Eduardo Avancci & Inácio Júnior, Edmundo & Fischer, Bruno Brandão, 2021. "Country-level efficiency and the index of dynamic entrepreneurship: Contributions from an efficiency approach," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    12. Jeffrey Muldoon & Younggeun Lee & Eric W. Liguori & Saumyaranjan Sahoo & Satish Kumar, 2024. "Mapping the entrepreneurship ecosystem scholarship: current state and future directions," International Entrepreneurship and Management Journal, Springer, vol. 20(4), pages 3035-3080, December.
    13. da Fonseca, André Luís A. & Chimenti, Paula & Campos, Roberta D., 2023. "‘Take my advice’: Entrepreneurial consumers and the ecosystemic logics of digital platforms," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    14. Komlósi, Éva & Sebestyén, Tamás & Tóth-Pajor, Ákos & Bedő, Zsolt, 2022. "Do specific entrepreneurial ecosystems favor high-level networking while others not? Lessons from the Hungarian IT sector," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    15. Siqueira, Erica H.S. & Fischer, Bruno Brandão & Bin, Adriana & Kickul, Jill, 2023. "Entrepreneurial ecosystems’ readiness towards knowledge-intensive sustainable entrepreneurship: Evidence from Brazil," Technovation, Elsevier, vol. 126(C).
    16. Hernández-Chea, Roberto & Mahdad, Maral & Minh, Thai Thi & Hjortsø, Carsten Nico, 2021. "Moving beyond intermediation: How intermediary organizations shape collaboration dynamics in entrepreneurial ecosystems," Technovation, Elsevier, vol. 108(C).
    17. Roundy, Philip T. & Randy Evans, W., 2024. "Entrepreneurial ecosystems as multiteam systems: Navigating independence and interdependence in the leadership of startup communities," Journal of Business Venturing Insights, Elsevier, vol. 21(C).
    18. 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).
    19. Silva, Lucas Emmanuel Nascimento & Gomes, Leonardo Augusto de Vasconcelos & Faria, Aline Mariane de & Borini, Felipe Mendes, 2024. "Innovation processes in ecosystem settings: An integrative framework and future directions," Technovation, Elsevier, vol. 132(C).
    20. Ferreira, João J.M. & Fernandes, Cristina I. & Mota Veiga, Pedro, 2023. "The role of entrepreneurial ecosystems in the SME internationalization," Journal of Business Research, Elsevier, vol. 157(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:156:y:2023:i:c:s0148296322009158. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.