The role of local embeddedness and non-local knowledge in entrepreneurial activity

Research output: Contribution to journalArticlepeer-review

Abstract

The article investigates whether the history of individuals’ spatial relocation has an impact on their propensity to perform an entrepreneurial entry and post-entry performance of firms they start. By looking at entrepreneurs in the IT services sector in Swedish non-core regions between 1991 and 2010, the article investigates the interaction between individuals’ embeddedness in local networks and their exposure to external knowledge accumulation opportunities across different geographical settings, as well as its impact on their entrepreneurial activities. The results of the analysis suggest that individuals with broad spatial relocation histories are more likely to start IT firms in non-core regions, which, in turn, may be expected to survive longer. It is, therefore, claimed that non-local knowledge accumulated through spatial relocation is an important complement to embeddedness in local networks in non-core regions. This complementarity is further related to the evolution of the IT services sector over time.
Original languageEnglish
Pages (from-to)741-762
JournalSmall Business Economics
Volume49
Issue number4
Early online date2017 May 4
DOIs
Publication statusPublished - 2017 Dec

Subject classification (UKÄ)

  • Economic Geography

Free keywords

  • Entrepreneurship
  • Mobility
  • Locational behavior
  • Spatial biographies
  • Local embeddedness
  • Non-local knowledge

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