Tinkering or orchestrating? The value of country-level asset management capability and entrepreneurship outcomes

Abstract

Drawing on entrepreneurship policy literature and resource orchestration theory, we ask whether asset management capabilities of countries explain differences in entrepreneurship outcomes. We define the term asset management capability as the orchestration of inputs and outputs to improve entrepreneurial activity. Using time-series data of 512 inputs and outputs in 219 countries (2000–2018), we model for non-linear dynamic latent variables, allow for inefficiencies and slack, deconfound the model to improve predictive inference, and use cross-validation. The results illustrate systematic variations in asset management capabilities across countries and have implications for entrepreneurship and policymakers.