Entrepreneurial ecosystems, institutional quality, and the unexpected role of the sustainability orientation of entrepreneurs

While research on entrepreneurship and entrepreneurial ecosystems (EEs) has consolidated over the last decade, one question remains unanswered: how can the sustainability orientation of EE actors facilitate the intensity and growth orientation of entrepreneurship in the ecosystem? Entrepreneurship activity relies on the sustainability orientation of the ecosystem, which is lacking in most developing countries where reaching the UN’s Sustainable Development Goals (SDGs) is the most pressing concern. Using primary data on 1789 EE actors from 17 cities in East and South-East Europe and econometric analysis techniques, we investigate the relationship between the sustainability orientation of EE actors and EE outcomes. We find that this relationship is conditional on the country’s institutional quality and is consistent for a variety of EE outcomes. Practical implications for regional policymakers and entrepreneurs are developed.