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Innovation embedded in entrepreneurs’ networks and national educational systems

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  • Thomas Schott
  • Mahdokht Sedaghat

Abstract

The proposition that entrepreneurs’ innovation is embedded in networking is refined. We distinguish between networking in the public sphere and networking in the private sphere, and hypothesize that innovation benefits from public sphere networking but suffers from private sphere networking. These hypotheses are tested with a representative sample of 56,611 entrepreneurs in 61 countries surveyed in the Global Entrepreneurship Monitor. Hierarchical linear modeling shows that, while overall networking benefits innovation, innovation is decreased by private sphere networking and increased by networking in the public sphere, especially in the professions and internationally. A further refinement is to consider entrepreneurs’ endeavors as embedded in society with its system of education for entrepreneurship. We hypothesize that the quality of a national system moderates the impacts of networks on innovation by adding value to networks. Analyses show that quality of national educational system adds innovation benefits to both public sphere networking and private sphere networking. Copyright The Author(s) 2014

Suggested Citation

  • Thomas Schott & Mahdokht Sedaghat, 2014. "Innovation embedded in entrepreneurs’ networks and national educational systems," Small Business Economics, Springer, vol. 43(2), pages 463-476, August.
    • Handle: RePEc:kap:sbusec:v:43:y:2014:i:2:p:463-476
    DOI: 10.1007/s11187-014-9546-8
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    Cited by:

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    2. Dennis Leyden & Albert Link, 2015. "Toward a theory of the entrepreneurial process," Small Business Economics, Springer, vol. 44(3), pages 475-484, March.
    3. Dinithi N. Jayasekara & Jonathan H. W. Tan, 2024. "How do intercultural proximity and social fragmentation promote international patent cooperation?," Small Business Economics, Springer, vol. 63(1), pages 421-445, June.
    4. José Carlos Pinho, 2017. "Institutional theory and global entrepreneurship: exploring differences between factor- versus innovation-driven countries," Journal of International Entrepreneurship, Springer, vol. 15(1), pages 56-84, March.
    5. Philipp Kruse & Eleanor Meda Chipeta & Imke Ueberschär, 2023. "What Keeps Social Entrepreneurs Happy? Exploring Personality, Work Design, External Support, and Social Impact as Resources of Social Entrepreneurs’ Mental Well-Being," Sustainability, MDPI, vol. 15(5), pages 1-23, February.
    6. Kim Klyver & Benson Honig & Paul Steffens, 2018. "Social support timing and persistence in nascent entrepreneurship: exploring when instrumental and emotional support is most effective," Small Business Economics, Springer, vol. 51(3), pages 709-734, October.
    7. Thomas Neumann, 2023. "Are greener start-ups of superior quality? The impact of environmental orientation on innovativeness, growth orientation, and international orientation," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-24, December.
    8. Schøtt, Thomas & Jensen, Kent Wickstrøm, 2016. "Firms’ innovation benefiting from networking and institutional support: A global analysis of national and firm effects," Research Policy, Elsevier, vol. 45(6), pages 1233-1246.
    9. Pindado, Emilio & Sánchez, Mercedes & García Martínez, Marian, 2023. "Entrepreneurial innovativeness: When too little or too much agglomeration hurts," Research Policy, Elsevier, vol. 52(1).
    10. Hoogendoorn, Brigitte & van der Zwan, Peter & Thurik, Roy, 2020. "Goal heterogeneity at start-up: are greener start-ups more innovative?," Research Policy, Elsevier, vol. 49(10).
    11. Shayegheh Ashourizadeh & Mehrzad Saeedikiya, 2022. "Immigrant and native export benefiting from business collaborations: a global study," Papers 2205.13171, arXiv.org.
    12. Pilar Monton & Luisa-Eugenia Reyes & Carlos-María Alcover, 2022. "Personal Characteristics for Successful Senior Cohousing: A Proposed Theoretical Model," IJERPH, MDPI, vol. 19(4), pages 1-13, February.
    13. Shayegheh Ashourizadeh & Jizhen Li & Kent Adsbøll Wickstrøm, 2022. "Immigrants` Entrepreneurial Networks and Export: A Comparative Study," International Entrepreneurship and Management Journal, Springer, vol. 18(3), pages 1291-1318, September.
    14. Charlie Karlsson & Peter Warda, 2014. "Entrepreneurship and innovation networks," Small Business Economics, Springer, vol. 43(2), pages 393-398, August.
    15. Shayegheh Ashourizadeh & Jizhen Li & Kent Adsbøll Wickstrøm, 0. "Immigrants` Entrepreneurial Networks and Export: A Comparative Study," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-28.
    16. Daojuan Wang & Thomas Schøtt, 2022. "Coupling between financing and innovation in a startup: embedded in networks with investors and researchers," International Entrepreneurship and Management Journal, Springer, vol. 18(1), pages 327-347, March.
    17. Salustiano Martínez-Fierro & José María Biedma-Ferrer & José Ruiz-Navarro, 2016. "Entrepreneurship and strategies for economic development," Small Business Economics, Springer, vol. 47(4), pages 835-851, December.

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    More about this item

    Keywords

    Entrepreneurs; Innovation; Networks; Social capital; Private sphere; Public sphere; C210; I25; L26; L140; M130; O31; Z130;
    All these keywords.

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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