Abstract:
The resilience of entrepreneurial ecosystems—defined as their ability to adapt and react to disturbances—has received increasing attention to better understand the mechanisms and processes that enable recovery during exogenous shocks, such as economic crises. Among these mechanisms, the inherent network structures of entrepreneurial ecosystems are particularly relevant, as they foster innovation, and create an environment favorable to economic growth. However, the role of ecosystem network structures in shaping such resilience remains underexplored. Using a unique dataset of small and medium-sized entrepreneurial ecosystems in Germany, this paper investigates how ecosystem network structures, whether dominated by small or large firms, influence the resilience of ecosystems during times of crisis. Our results show that stronger network structures are associated with greater resilience in terms of employment, particularly in ecosystems dominated by small firms. In contrast, the same network structures show a negative association with resilience measured by regional GDP performance, suggesting that job recovery does not necessarily translate into immediate economic growth. We contribute to current debates on entrepreneurial ecosystems by providing evidence on how different network configurations influence resilience, offering important implications for both researchers and policymakers aiming to foster adaptive and robust local economies.
