Entrepreneurship ecosystems: an agent-based simulation approach

Knowledge acquisition and development of capabilities constitutes a key perspective in studies regarding the formation of new ventures. When examining entrepreneurship ecosystems, we find that the composition of a region influences the new knowledge acquired by the venture. The main aim of this study is to examine the influence of the new venture, the entrepreneur’s social capital, and the firm performance on the new venture’s knowledge acquisition activities. In particular, the study examines how the institutional context of a region influences new ventures’ knowledge acquisition actions during its growth, and in turn the level of sustained entrepreneurial activity within the region. The paper focuses on the formation of alliances by new ventures, one particular form of knowledge acquisition process that has been established as critical to new venture success in the high technology sector. The mechanisms for acquiring and transforming knowledge have the greatest impact on new venture formation, and in this context, the concepts of strategic knowledge arbitrage and strategic knowledge serendipity (SKARSE™) are validated through an agent-based simulation model. The main results focus on the effects of interactions between entrepreneurs and institutions in the process of new venture formation from a knowledge creation, dissemination, and absorption perspective.