Contributions of sustainable start-up ecosystem to dynamics of start-up companies: the case of Lithuania

Abstract

The purpose of the present study is to evaluate contributions of sustainable start-up ecosystems to the development and dynamics of start-up companies. To illustrate how the sustainability of start-up ecosystems affects the development trends of start-up companies the case of Lithuania is analysed. Lithuania is chosen because of its experience of dynamically transforming its start-up ecosystem; the case is useful for both further scientific analysis of start-up ecosystems and application of the Lithuanian experience to other countries. Cooperation and networking among companies have been important research topics for many decades. In the second half of the 20th century the network expansion evolved due to the development of social, economic, political and technological systems (Iansiti and Levien, 2004); however, companies faced new challenges in adapting to the rapidly changing environment, creating synergies from cooperation in ecosystems and sustainably strengthening their competitive advantage. In the early 1990s the term ‘business ecosystem’ was introduced into popular management parlance by James F. Moore (1993). Moore suggested an ecological approach to management, where modern business is viewed not only as a member of a single industry, but rather a part of a business ecosystem that crosses a variety of industries. The present research is centred on effects of this business ecosystem on the dynamics of start-ups. Given the multifactor and trans-disciplinary nature of start-up ecosystems, the triangulation method of combining the scientific literature overview, semi-structured qualitative interviews and quantitative survey method is chosen: the quantitative survey was designed to reveal the general profile of a start-up company and its’ approach towards start-up ecosystems, while qualitative semi-structured expert interviews were conducted to acknowledge why and how start-up ecosystem influences the development of companies. The research question is how sustainability of start-up ecosystems affects the development patterns of start-up companies. This should help other countries such as Georgia, Moldova, Bulgaria or Romania to avoid of possible mistakes in enhancing their own start-up ecosystems.