Understanding entrepreneurial ecosystems using complex adaptive systems theory: getting the big picture for economic development, practice, and policy

Abstract

ABSTRACT This paper demonstrates how the theory of complex adaptive systems (CAS) and entrepreneurial ecosystems (EE) can be synthesized to create a comprehensive framework for understanding EEs as comprising dynamic and diverse actors, factors, and interdependencies. We adapt four elements common to CAS and propose a context-specific framework for explaining EEs through people, place, purpose, and process to provide insights for policy, development, and regulatory interventions. Motivated by the challenge to develop a practical and parsimonious framework for comprehensive EE analysis, we present a case study using a CAS approach to illustrate the nature of EEs as dynamic, interconnected social systems and identify opportunities for economic development interventions. The study offers a novel framework for system-level EE analysis, and in doing so, it contributes to entrepreneurial economic development, research, policy, and practice.