IDEAS home Printed from https://ideas.repec.org/a/eee/jobuve/v14y2020ics2352673420300500.html
   My bibliography  Save this article

Assessing the complex dynamics of entrepreneurial ecosystems: A nonstationary approach

Author

Listed:
  • Haarhaus, Tim
  • Strunk, Guido
  • Liening, Andreas

Abstract

The notion of entrepreneurial ecosystems (EEs) has received growing interest from scientists, practitioners and policy-makers over the past decade. Whereas previous research has predominantly focused on identifying the main components and attributes of different ecosystems, the understanding of how EEs evolve over time is still limited. In this study, we build on recent conceptualizations of EEs as complex adaptive systems and apply three methods from chaos theory, the Pointwise D2 (PD2), the Brock-Dechert-Scheinkman (BDS) test and Local Largest Lyapunov Exponents (LLLEs), to study the nonlinear dynamics of EEs. To illustrate our ideas, we analyze the development of the Singapore entrepreneurial ecosystem (SEE) from 1970 to 2018, using time series data on the monthly creation of new ventures. Our results suggest that the evolution of an EE can be considered as a nonlinear chaotic process that changes over time. Implications for theory and practice, as well as limitations and future research directions, are discussed.

Suggested Citation

  • Haarhaus, Tim & Strunk, Guido & Liening, Andreas, 2020. "Assessing the complex dynamics of entrepreneurial ecosystems: A nonstationary approach," Journal of Business Venturing Insights, Elsevier, vol. 14(C).
    • Handle: RePEc:eee:jobuve:v:14:y:2020:i:c:s2352673420300500
    DOI: 10.1016/j.jbvi.2020.e00194
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2352673420300500
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbvi.2020.e00194?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. Berger, Elisabeth S.C. & Kuckertz, Andreas, 2016. "Female entrepreneurship in startup ecosystems worldwide," Journal of Business Research, Elsevier, vol. 69(11), pages 5163-5168.
    2. 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.
    3. Vasilis Dakos & Stephen R Carpenter & William A Brock & Aaron M Ellison & Vishwesha Guttal & Anthony R Ives & Sonia Kéfi & Valerie Livina & David A Seekell & Egbert H van Nes & Marten Scheffer, 2012. "Methods for Detecting Early Warnings of Critical Transitions in Time Series Illustrated Using Simulated Ecological Data," PLOS ONE, Public Library of Science, vol. 7(7), pages 1-20, July.
    4. Ben Spigel, 2017. "The Relational Organization of Entrepreneurial Ecosystems," Entrepreneurship Theory and Practice, , vol. 41(1), pages 49-72, January.
    5. Zeynab Aeeni & Mehrzad Saeedikiya, 2019. "Complexity Theory in the Advancement of Entrepreneurship Ecosystem Research: Future Research Directions," Eurasian Studies in Business and Economics, in: Mehmet Huseyin Bilgin & Hakan Danis & Ender Demir & Ugur Can (ed.), Eurasian Business Perspectives, pages 19-37, Springer.
    6. Guido Strunk, 2009. "Operationalizing Career Complexity," management revue. Socio-economic Studies, Rainer Hampp Verlag, vol. 20(3), pages 294-311.
    7. Ross Brown & Colin Mason, 2017. "Looking inside the spiky bits: a critical review and conceptualisation of entrepreneurial ecosystems," Small Business Economics, Springer, vol. 49(1), pages 11-30, June.
    8. Alessandra Colombelli & Emilio Paolucci & Elisa Ughetto, 2019. "Hierarchical and relational governance and the life cycle of entrepreneurial ecosystems," Small Business Economics, Springer, vol. 52(2), pages 505-521, February.
    9. Andreas Liening & Jan-Martin Geiger & Ronald Kriedel & Waldemar Wagner, 2016. "Complexity and Entrepreneurship: Modeling the Process of Entrepreneurship Education with the Theory of Synergetics," FGF Studies in Small Business and Entrepreneurship, in: Elisabeth S.C. Berger & Andreas Kuckertz (ed.), Complexity in Entrepreneurship, Innovation and Technology Research, edition 1, pages 93-115, Springer.
    10. Raymond-Alain Thiétart & Bernard Forgues, 1997. "Action, Structure and Chaos," Post-Print hal-02312805, HAL.
    11. Mehmet Huseyin Bilgin & Hakan Danis & Ender Demir & Ugur Can (ed.), 2019. "Eurasian Business Perspectives," Eurasian Studies in Business and Economics, Springer, number 978-3-030-18652-4, June.
    12. Philip E. Auerswald & Lokesh Dani, 2017. "The adaptive life cycle of entrepreneurial ecosystems: the biotechnology cluster," Small Business Economics, Springer, vol. 49(1), pages 97-117, June.
    13. Muñoz, Pablo & Dimov, Dimo, 2015. "The call of the whole in understanding the development of sustainable ventures," Journal of Business Venturing, Elsevier, vol. 30(4), pages 632-654.
    14. Mine Karatas‐ozkan & Alistair R. Anderson & Alain Fayolle & Jeremy Howells & Roland Condor, 2014. "Understanding Entrepreneurship: Challenging Dominant Perspectives and Theorizing Entrepreneurship through New Postpositivist Epistemologies," Journal of Small Business Management, Taylor & Francis Journals, vol. 52(4), pages 589-593, October.
    15. Hung, Shih-Chang & Tu, Min-Fen, 2014. "Is small actually big? The chaos of technological change," Research Policy, Elsevier, vol. 43(7), pages 1227-1238.
    16. Guido Strunk & Michael Schiffinger & Wolfgang Mayrhofer, 2004. "Lost in Transition? Complexity in Organisational Behaviour ?the Contributions of Systems Theories," management revue. Socio-economic Studies, Rainer Hampp Verlag, vol. 15(4), pages 481-509.
    17. Petra A. Nylund & Boyd Cohen, 0. "Collision density: driving growth in urban entrepreneurial ecosystems," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-20.
    18. Guido Strunk, 2009. "Operationalizing Career Complexity," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 20(3), pages 294-311.
    19. Mehmet Huseyin Bilgin & Hakan Danis & Ender Demir & Ugur Can (ed.), 2019. "Eurasian Business Perspectives," Eurasian Studies in Business and Economics, Springer, number 978-3-030-11872-3, June.
    20. Angelo Cavallo & Antonio Ghezzi & Raffaello Balocco, 2019. "Entrepreneurial ecosystem research: present debates and future directions," International Entrepreneurship and Management Journal, Springer, vol. 15(4), pages 1291-1321, December.
    21. Kian-Ping Lim & Chee-Wooi Hooy, 2013. "Non-Linear Predictability In G7 Stock Index Returns," Manchester School, University of Manchester, vol. 81(4), pages 620-637, July.
    22. Allan O’Connor & Erik Stam & Fiona Sussan & David B. Audretsch, 2018. "Entrepreneurial Ecosystems: The Foundations of Place-based Renewal," International Studies in Entrepreneurship, in: Allan O'Connor & Erik Stam & Fiona Sussan & David B. Audretsch (ed.), Entrepreneurial Ecosystems, pages 1-21, Springer.
    23. Yu-Ting Cheng & Andrew H. Van de Ven, 1996. "Learning the Innovation Journey: Order out of Chaos?," Organization Science, INFORMS, vol. 7(6), pages 593-614, December.
    24. Janna Alvedalen & Ron Boschma, 2017. "A critical review of entrepreneurial ecosystems research: towards a future research agenda," European Planning Studies, Taylor & Francis Journals, vol. 25(6), pages 887-903, June.
    25. Lichtenstein, Benyamin B. & Carter, Nancy M. & Dooley, Kevin J. & Gartner, William B., 2007. "Complexity dynamics of nascent entrepreneurship," Journal of Business Venturing, Elsevier, vol. 22(2), pages 236-261, March.
    26. David Levy, 1994. "Chaos theory and strategy: Theory, application, and managerial implications," Strategic Management Journal, Wiley Blackwell, vol. 15(S2), pages 167-178, June.
    27. 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.
    28. McKelvey, Bill, 2004. "Toward a complexity science of entrepreneurship," Journal of Business Venturing, Elsevier, vol. 19(3), pages 313-341, May.
    29. Urquhart, Andrew & McGroarty, Frank, 2016. "Are stock markets really efficient? Evidence of the adaptive market hypothesis," International Review of Financial Analysis, Elsevier, vol. 47(C), pages 39-49.
    30. Fiona Sussan & Zoltan J. Acs, 2017. "The digital entrepreneurial ecosystem," Small Business Economics, Springer, vol. 49(1), pages 55-73, June.
    31. Guido Strunk & Michael Schiffinger & Wolfgang Mayrhofer, 2004. "Lost in Transition? Complexity in Organisational Behaviour ?the Contributions of Systems Theories," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 15(4), pages 481-509.
    32. Petra A. Nylund & Boyd Cohen, 2017. "Collision density: driving growth in urban entrepreneurial ecosystems," International Entrepreneurship and Management Journal, Springer, vol. 13(3), pages 757-776, September.
    33. Huff, W G, 1995. "What Is the Singapore Model of Economic Development?," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 19(6), pages 735-759, December.
    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. Khurana, Indu & Dutta, Dev K. & Singh Ghura, Amarpreet, 2022. "SMEs and digital transformation during a crisis: The emergence of resilience as a second-order dynamic capability in an entrepreneurial ecosystem," Journal of Business Research, Elsevier, vol. 150(C), pages 623-641.
    2. 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.
    3. 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).
    4. 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).
    5. Kusa, Rafał & Duda, Joanna & Suder, Marcin, 2022. "How to sustain company growth in times of crisis: The mitigating role of entrepreneurial management," Journal of Business Research, Elsevier, vol. 142(C), pages 377-386.

    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. Han, Jin & Ruan, Yi & Wang, Yanmin & Zhou, Haibo, 2021. "Toward a complex adaptive system: The case of the Zhongguancun entrepreneurship ecosystem," Journal of Business Research, Elsevier, vol. 128(C), pages 537-550.
    2. 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.
    3. 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.
    4. Rocha, Augusto & Brown, Ross & Mawson, Suzanne, 2021. "Capturing conversations in entrepreneurial ecosystems," Research Policy, Elsevier, vol. 50(9).
    5. 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).
    6. Colin Donaldson, 2021. "Culture in the entrepreneurial ecosystem: a conceptual framing," International Entrepreneurship and Management Journal, Springer, vol. 17(1), pages 289-319, March.
    7. Bessagnet, Arnauld & Crespo, Joan & Vicente, Jérôme, 2021. "Unraveling the multi-scalar and evolutionary forces of entrepreneurial ecosystems: A historical event analysis applied to IoT Valley," Technovation, Elsevier, vol. 108(C).
    8. Marquardt, Leon & Harima, Aki, 2024. "Digital boundary spanning in the evolution of entrepreneurial ecosystems: A dynamic capabilities perspective," Journal of Business Research, Elsevier, vol. 182(C).
    9. Bernd Wurth & Erik Stam & Ben Spigel, 2022. "Toward an Entrepreneurial Ecosystem Research Program," Entrepreneurship Theory and Practice, , vol. 46(3), pages 729-778, May.
    10. 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).
    11. Pankov, Susanne & Schneckenberg, Dirk & Velamuri, Vivek K., 2021. "Advocating sustainability in entrepreneurial ecosystems: Micro-level practices of sharing ventures," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    12. Angelo Cavallo & Antonio Ghezzi & Raffaello Balocco, 2019. "Entrepreneurial ecosystem research: present debates and future directions," International Entrepreneurship and Management Journal, Springer, vol. 15(4), pages 1291-1321, December.
    13. Uwe Cantner & James A. Cunningham & Erik E. Lehmann & Matthias Menter, 2021. "Entrepreneurial ecosystems: a dynamic lifecycle model," Small Business Economics, Springer, vol. 57(1), pages 407-423, June.
    14. Christina Theodoraki & Alexis Catanzaro, 2022. "Widening the borders of entrepreneurial ecosystem through the international lens," The Journal of Technology Transfer, Springer, vol. 47(2), pages 383-406, April.
    15. Quoc Hoang Thai & Khuong Ngoc Mai & Tung Thanh Do, 2023. "An Evolution of Entrepreneurial Ecosystem Studies: A Systematic Literature Review and Future Research Agenda," SAGE Open, , vol. 13(1), pages 21582440231, March.
    16. 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.
    17. Rocha, Augusto & Brown, Ross & Mawson, Suzanne, 2022. "Reprint of: Capturing conversations in entrepreneurial ecosystems," Research Policy, Elsevier, vol. 51(9).
    18. Zhe Cao & Xianwei Shi, 2021. "A systematic literature review of entrepreneurial ecosystems in advanced and emerging economies," Small Business Economics, Springer, vol. 57(1), pages 75-110, June.
    19. 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.
    20. Bejjani, Melissa & Göcke, Lutz & Menter, Matthias, 2023. "Digital entrepreneurial ecosystems: A systematic literature review," Technological Forecasting and Social Change, Elsevier, vol. 189(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:jobuve:v:14:y:2020:i:c:s2352673420300500. 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: https://www.journals.elsevier.com/journal-of-business-venturing-insights .

    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.