Building a Resilient Entrepreneurial Ecsoysem: Unpacking Resource Recycling Mechanisms

Understanding the evolution of entrepreneurial ecosystems (EEs) is critical for building resilient EEs. Extant research has focused on conceptualizing EE evolution, where scholars theorize it as a process of developing ecosystem-level entrepreneurial resources. EE scholars commonly acknowledge the critical role of resource recycling in building a resilient EE, which develops without substantially relying on public support and is resilient to exogenous shocks (e.g., the Covid-19 pandemic, regulation changes) and endogenous disruptions (e.g., withdrawal of investment, the collapse of large corporations). However, the underlying mechanisms of resource recycling are largely undertheorized in the current EE literature. To address this gap, this project will conduct an extensive single-case study of the Estonian EE. Previous studies have proven that single-case studies effectively examine complex evolutionary dynamics in EE contexts. This study aims to identify patterns of resource recycling and its impact on the evolution of EEs. Specifically, it will seek to answer the following research questions: (1) How do ecosystem actors engage in resource recycling in EEs? and (2) How does their resource recycling create catalytic forces for the evolution of EEs? The primary data for this study will consist of 25 semi-structured interviews and field observations. Additionally, the study will extensively use secondary data to analyze the historical development of EEs and how the nature and patterns of resource recycling have transformed. The project will offer theoretical implications for EE research. By identifying different patterns of resource recycling, this study will contribute to advancing the theoretical understanding of the evolutionary mechanisms of EE evolution from a resource perspective.