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- Title
Measuring the efficiency of an entrepreneurial ecosystem at municipality level: does institutional transparency play a moderating role?
- Authors
Riaz, Muhammad Faraz; Leitão, João; Cantner, Uwe
- Abstract
This study measures the output (start-ups) of an entrepreneurial ecosystem and estimates the moderating effect of institutional transparency on the relationship between entrepreneurial ecosystem and start-ups, applied to the context of Portuguese municipalities. Using factor analysis, a composite index of entrepreneurial ecosystem is constructed. The empirical results reveal that institutional transparency catalyzes the positive effect of entrepreneurial ecosystem index on the start-ups. Nevertheless, when the individual effects of entrepreneurial ecosystem's elements on start-ups are analyzed, the composite index of institutional transparency reveals to be non-linearly related with the output of the entrepreneurial ecosystem, denoting a negative coefficient, in the linear form, and a positive coefficient, in the quadratic form. In addition, increases in financial and economic transparency and the transparency in urban planning deter the new business formation in a municipality, whereas the municipalities where public procurement is relatively transparent are found to be attracting more start-ups. Results also suggest that by increasing the transparency in public procurement, the government can raise the number of start-ups in a municipality. The empirical findings also corroborate the thesis that the presence of higher education institutions in a municipality help to attract more start-ups.
- Subjects
CITIES &; towns; GOVERNMENT purchasing; NEW business enterprises; QUADRATIC forms; UNIVERSITIES &; colleges; ENTREPRENEURSHIP education
- Publication
Eurasian Business Review, 2022, Vol 12, Issue 1, p151
- ISSN
1309-4297
- Publication type
Article
- DOI
10.1007/s40821-021-00194-w