Beyond Spatial Proximity: The Impact of Enhanced Spatial Connectedness from New Bridges on Entrepreneurship

Abstract

Various strands of work have explored how spatial proximity helps (metaphorically) bridge barriers to resource mobilization and foster knowledge transfer. However, much of that work takes spatial connectedness as a given. We argue that spatial connectedness is a distinct construct that affects the extent to which spaces are not just proximate but are actually able to link people, ideas, resources, and knowledge together. We explore one such source of connectedness—physical (not metaphorical) bridges. We find that the opening of newly built bridges enhances startup founding in the local geographic community. Beyond their impact on startup founding, newly built bridges also influence the organizing process for such ventures. This includes a positive impact on the entry of prospective founders into entrepreneurship and an increase in the number of early-stage investors. The subsequently founded ventures are also more likely to engage in recombination and to cross industry boundaries. We explore scope conditions around industry and connective heterogeneity. We also test for robustness to various modeling approaches. The discussion highlights contributions of these findings to the study of entrepreneurship, as well as of organizations and the institutional fields in which they operate.