Investigating the success factors of the Nordic entrepreneurial ecosystem

Abstract

This paper explores talent transformation from a pool of entrepreneurial talent to successful entrepreneurs as a central characteristic of a successful entrepreneurial ecosystem. To this end, we link related literature streams around cluster theory and regional innovation systems and expand them by drawing on the literature of entrepreneurial ecosystems. Starting out, we review literature on contextual factors that drive the success of entrepreneurial ecosystems and employ qualitative expert interviews to uncover nuances of a qualitative entrepreneurial ecosystem. Based on the interviews and by interlinking the factors identified in literature to have a positive influence on entrepreneurial ecosystems, we introduce talent transformation as a potential key process for the flourishing of entrepreneurial ecosystems and find the social and contextual business environment to be the main independent co-factors. By investigating the European best-practice example of the Nordic countries, we develop and introduce a three-phased talent transformation process and make concrete recommendations for entrepreneurial ecosystem development that can be applied in any geographic context.

Keywords

entrepreneurial ecosystem Nordic countries entrepreneurial talent talent transformation innovation communities networks business environment social context entrepreneurship policy entrepreneurship success factors

Get full access to this article

View all access options for this article.

References

Acs

Autio

Szerb

(2014) National systems of entrepreneurship: Measurement issues and policy implications. Research Policy 43(3): 476–494.

Aldrich

Fiol

(1994) Fools rush in? The institutional context of industry creation. Academy of Management Review 19(4): 645–670.

Alvedalen

Boschma

(2017) A critical review of entrepreneurial ecosystems research: Towards a future research agenda. European Planning Studies 25(6): 887–903.

Asheim

Coenen

Vang

(2007) Face-to-face, buzz and knowledge bases: Sociospatial implications for learning, innovation, and innovation policy. Environment and Planning C: Government and Policy 25(5): 655–670.

Asheim

Boschma

Cooke

(2011) Constructing regional advantage: Platform policies based on related variety and differentiated knowledge bases. Regional Studies 45(7): 893–904.

Audretsch

(1998) Agglomeration and the location of innovative activity. Oxford Review of Economic Policy 14(2): 18–29.

Audretsch

(2007) Entrepreneurship capital and economic growth. Oxford Review of Economic Policy 23(1): 63–78.

Autio

Kenney

Mustar

, et al. (2014) Entrepreneurial innovation: The importance of context. Research Policy 43(7): 1097–1108.

Bahrami

Evans

(1995) Flexible re-cycling and high-technology entrepreneurship. California Management Review 37(1): 62–89.

10.

Bala Subrahmanya

(2017) How did Bangalore emerge as a global hub of tech start-ups in India? Entrepreneurial ecosystem—evolution, structure and role. Journal of Developmental Entrepreneurship 22(1): 1750006.

11.

Bates

Jackson

Johnson

(2007) ‘Introduction: Advancing research on minority entrepreneurship. The Annals of the American Academy of Political and Social Science 613(1): 10–17.

12.

Bloomberg Innovation Index (2020) Germany breaks Korea's six-year streak as most innovative nation. Available at: https://www.bloomberg.com/news/articles/2020-01-18/germany-breaks-korea-s-six-year-streak-as-most-innovative-nation (accessed 15 May 2020).

13.

Byrne

and Fayolle

(2010) A feminist inquiry into entrepreneurship training. In: Smallbone

Leitao

Raposo

, et al. (eds) The Theory and Practice of Entrepreneurship. Cheltenham: Edward Elgar Publishing, 76–100.

14.

Cantner

Cunningham

Lehmann

, et al. (2021) Entrepreneurial ecosystems : A dynamic lifecycle model. Small Business Economics 57(1): 407–423.

15.

Cohen

(2006) Sustainable valley entrepreneurial ecosystems. Business Strategy and the Environment 15(1): 1–14.

16.

Cooke

(2008) Regional innovation systems: Origin of the species. International Journal of Technological Learning, Innovation and Development 1(3): 393–409.

17.

Cooke

Gomez Uranga

et al. (1997) Regional innovation systems: Institutional and organizational dimensions. Research Policy 26(4–5): 475–491.

18.

Cresswell

Plano Clark

(2011) Designing and Conducting Mixed Method Research (2nd ed.). Thousand Oaks, CA: Sage.

19.

Davenport

Redman

(2020) Digital Transformation Comes Down to Talent in 4 Key Areas. Harvard Business Review Digital Articles, 5/21/2020 2–5. Available at: https://hbr.org/2020/05/digital-transformation-comes-down-to-talent-in-4-key-areas (accessed 15 October 2020).

20.

Del Rowe

(2017) Digital Transformation Needs to Happen Now. Customer Relationship Management, (October), 30–33.

21.

Eisenhardt

(1989) Building theories from case study research. Academy of Management Review 14(4): 532–550.

22.

European Digital City Index (2016) Available at: https://digitalcityindex.eu (accessed 13 May 2020).

23.

Feld

(2012) Startup Communities: Building an Entrepreneurial Ecosystem in Your City. New York: John Wiley & Sons, Inc., 186–187.

24.

Frankiewicz

Chamorro-Premuzic

(2020) Digital transformation is about talent, not technology. Harvard Business Review Digital Articles, 05/06/2020 2-6. Available at: https://hbr.org/2020/05/digital-transformation-is-about-talent-not-technology (accessed 15 October 2020).

25.

Fritsch

(2002) Measuring the quality of regional innovation systems: A knowledge production function approach. International Regional Science Review 25(1): 86–101.

26.

Gioia

Corley

Hamilton

(2013) Seeking qualitative rigor in inductive research: Notes on the Gioia methodology. Organizational Research Methods 16(1): 15–31.

27.

Global Innovation Index (2019) Available at: https://www.globalinnovationindex.org (accessed 15 May 2020).

28.

Global Talent Competitiveness Index (2020) Available at: https://gtcistudy.com/introduction (accessed 14 May 2020).

29.

Greene

Rice

Fetters

(2010) University-based entrepreneurship ecosystems: Framing the discussion. In: Fetters

Greene

Rice

, et al. (eds) The Development of University-Based Entrepreneurship Ecosystems: Global Practices. Cheltenham: Edward Elgar, 1–11.

30.

Grillitsch

Hansen

Coenen

, et al. (2019) Innovation policy for system wide transformation: The case of strategic innovation programs (SIPs) in Sweden. Research Policy 48(4): 1048–1061.

31.

Hilson

(2019) The Nordic Region. Available at: https://nordics.info/show/artikel/the-nordic-region (accessed 29 March 2020).

32.

Hindle

(2010) How community context affects entrepreneurial process: A diagnostic framework. Entrepreneurship and Regional Development 22(7–8): 599–647.

33.

Huang-Saad

Duval-Couetil

Park

(2018) Technology and talent: Capturing the role of universities in regional entrepreneurial ecosystems. Journal of Enterprising Communities: People and Places in the Global Economy 12(2): 92–116.

34.

Human Development Index (2018) Available at: http://hdrundp.org/en/2018-update (accessed 22 May 2020).

35.

Isaksen

Trippl

(2014) Regional industrial path development in different regional innovation systems: A conceptual analysis. Innovation Studies 2014(17), Lund University, CIRCLE – Center for Innovation Research.

36.

Isenberg

(2011) The Entrepreneurship Ecosystem Strategy as A New Paradigm for Economy Policy: Principles for Cultivating Entrepreneurship. Babson Park, MA: Babson entrepreneurship ecosystem project, Babson College.

37.

Isenberg

(2010) How to start an entrepreneurial revolution. Harvard Business Review 88(6): 41–49.

38.

Johannisson

(2000) Networking and entrepreneurial growth. In: Sexton

Landström

(eds) The Blackwell Handbook of Entrepreneurship. Oxford: Blackwell, 368–386.

39.

Kabbaj

El Ouazzani

Hadi

, et al. (2016) A study of the social entrepreneurship ecosystem: The case of Morocco. Journal of Developmental Entrepreneurship 21(4): 1–21.

40.

Khan

Ghani

(2004) Clusters and entrepreneurship: Implications for innovation in a developing economy. Journal of Developmental Entrepreneurship 9(3): 221–238.

41.

Kirk

Miller

(1986) Reliability and Validity in Qualitative Research (Vol. 1). Beverly Hills: Sage Publications.

42.

Kitagawa

(2004) Universities and regional advantage: Higher education and innovation policies in English regions. European Planning Studies 12(6): 835–852.

43.

Kreutzer

(2018) An integrated and effective Nordic ecosystem for innovation and green growth. A closer look at access to risk capital in the Nordic countries. Available at: https://www.norden.org/en/publication/integrated-and-effective-nordic-ecosystem-innovation-and-green-growth (accessed 17 May 2020).

44.

Yang

Chen

, et al. (2020) Entrepreneurs’ social networks and opportunity identification: Entrepreneurial passion and entrepreneurial alertness as moderators. Social Behavior and Personality 48(2): 1–12.

45.

Manning

Stokes

Yedida Tarba

, et al. (2020) ‘Entrepreneurial stories, narratives and reading – their role in building entrepreneurial being and behaviour. The International Journal of Entrepreneurship and Innovation 21(3): 178–190.

46.

Mason

Harrison

(2006) After the exit: Acquisitions, entrepreneurial recycling and regional economic development. Regional Studies 40(1): 55–73.

47.

McAdam

Harrison

Leitch

(2019) Stories from the field: Women's Networking as gender capital in entrepreneurial ecosystems. Small Business Economics 53(2): 459–474.

48.

Nielsen

(2020) Passing on the good vibes: Entrepreneurs’ social support. The International Journal of Entrepreneurship and Innovation 21(1): 60–71.

49.

Nordic

Co-operation

(2021) Available at: https://www.norden.org/en (accessed 10 May 2020).

50.

Nordic Innovation (2017) Handbook to Nordic startup investor market: unleash the full potential of Nordic startups. Available at: https://www.nordicinnovation.org/2017/handbook-nordic-startup-investor-market (accessed 10 May 2020).

51.

Nordic Innovation Report (2019) Nordic innovation. Available at: https://www.norden.org/en/publication/nordic-innovation-annual-report-2019 (accessed 15 May 2020).

52.

Nowiński

Haddoud

(2019) The role of inspiring role models in enhancing entrepreneurial intention. Journal of Business Research 96: 183–193.

53.

OECD Better Life Index (2019) Available at: http://www.oecdbetterlifeindex.org/#/11111111115 (accessed 14 May 2020).

54.

Pagani

Fine

(2008) Value network dynamics in 3G–4G wireless communications: A systems thinking approach to strategic value assessment. Journal of Business Research 61(11): 1102–1112.

55.

Patton

(2002) Qualitative Research and Evaluation Methods (3rd ed.). Thousand Oaks, CA: Sage Publications.

56.

PWC (2018) Stock Compensation. 2018 Assumption and Disclose Study. Available at: https://www.pwc.com/us/en/services/hr-management/library/stock-compensation-assumption-and-disclosure-study.html (accessed 10 May 2020).

57.

Radicie

Pugh

Douglas

(2020) Promoting cooperation in innovation ecosystems: Evidence from European traditional manufacturing SMEs. Small Business Economics 54(1): 257–283.

58.

Rocha

(2004) Entrepreneurship and development: The role of clusters. Small Business Economics 23(5): 363–400.

59.

Roundy

Bayer

(2018) Entrepreneurial ecosystem narratives and the micro-foundations of regional entrepreneurship. International Journal of Entrepreneurship and Innovation 20(3): 194–208.

60.

Schumpeter

(1934) The Theory of Economic Development. Cambridge, Massachusetts: Harvard University Press.

61.

Schwab

Sala-i-Martin

(2013) The Global Competitiveness Report 2013–2014. Geneva: World Economic Forum. Available at: http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2013-14.pdf (accessed 15 May 2020).

62.

Shabsough

Semerci

Ergeneli

(2021) Women’s entrepreneurial intention: The role of sticky floor perception and social networking. The International Journal of Entrepreneurship and Innovation 22(1): 45–55. 10.1177/1465750320927356

63.

Shane

Cable

(2002) Network ties, reputation, and the financing of new ventures. Management Science 48(3): 364–381.

64.

Silzer

Dowell

(Eds.) (2010) Strategy-Driven Talent Management: A Leadership Imperative. San Francisco: John Wiley & Sons.

65.

Social Progress Index (2019) Available at: https://www.socialprogress.org. (accessed 25 March 2020).

66.

Sparrow

Scullion

Tarique

(2014) Strategic talent management: Future directions. In: Sparrow

Scullion

Tarique

(eds) Strategic Talent Management: Contemporary Issues in International Context. Cambridge: Cambridge University Press, 278–302.

67.

Spigel

(2017) The relational organization of entrepreneurial ecosystems. Entrepreneurship Theory and Practice 41(1): 49–72.

68.

Spigel

Harrison

(2017) Toward a process theory of entrepreneurial ecosystems. Strategic Entrepreneurship Journal 12(1): 151–168.

69.

Stam

(2014) The Dutch Entrepreneurial Ecosystem. Available at: https://ssrn.com/abstract=2473475 (accessed 6 May 2020).

70.

Stam

(2015) Entrepreneurial ecosystems and regional policy: A sympathetic critique. European Planning Studies 23(9): 1759–1769.

71.

Stam

Spigel

(2016) Entrepreneurial Ecosystems . Working Papers 16-13, Utrecht School of Economics.

72.

Stuart

Sorenson

(2005) Social networks and entrepreneurship. In: Alvarez

Agarwal

Sorenson

(eds) Handbook of Entrepreneurship Research: Disciplinary Perspectives. New York, NY: Springer Science and Business Media, 233–252.

73.

Szerb

Ács

Komlósi

, et al. (2014) Measuring Entrepreneurial, Ecosystems: The Regional Entrepreneurship and Development Index (REDI). Available at: https://ec.europa.eu/regional_policy/en/information/publications/studies/2014/redi-the-regional-entrepreneurship-and-development-index-measuring-regional-entrepreneurship (accessed 10 May 2020).

74.

Velt

Torkkeli

Saarenketo

(2020) Transnational entrepreneurial ecosystems: The perspectives of Finnish and Estonian born global start-ups. In: Research Handbook on Start-up Incubation Ecosystems. Cheltenham, United Kingdom: Edward Elgar Publishing, 110–134.

75.

Venture Beat (2018) Beyond Spotify and iZettle: How Sweden became Europe's capital of startup exits. Available at: https://venturebeat.com/2018/09/07/beyond-spotify-and-izettle-how-sweden-became-europes-capital-of-startup-exits (accessed 31 March 2020).

76.

Welter

(2011) Contextualizing entrepreneurship: Conceptual challenges and ways forward. Entrepreneurship Theory and Practice 35(1): 165–184.

77.

World Economic Forum (2013) Entrepreneurial Ecosystems around the Globe and Company Growth Dynamics. Available at: http://www3.weforum.org/docs/WEF_EntrepreneurialEcosystems_Report_2013.pdf (accessed 20 May 2020).

78.

World Economic Forum (2019) Europe is no longer an innovation leader. Here’s how it can get ahead. Available at: https://www.weforum.org/agenda/2019/03/europe-is-no-longer-an-innovation-leader-heres-how-it-can-get-ahead (accessed 7 May 2020).

79.

Wurth

Stam

Spigel

(2021) Toward an entrepreneurial ecosystem research program. Entrepreneurship: Theory and Practice March 2021, in press. 10.1177/1042258721998948

Investigating the success factors of the Nordic entrepreneurial ecosystem – talent transformation as a key process

Abstract

Keywords

Get full access to this article

References