Understanding the Impact of Entrepreneurial Ecosystem Interactions on Innovative Capabilities: Toward a Conceptual Framework

Abstract

This study examines the phenomenon of innovative capabilities in the context of entrepreneurial ecosystem interactions. It provides a conceptual framework by integrating relevant literature on the entrepreneurial ecosystem and interorganizational network collaboration, in order to portray their interconnectedness in explaining how small and medium enterprises (SMEs) can work smarter and become entrepreneurial. Based on interdisciplinary research, this research conceptualizes the transformational factors of innovation and digitalization where SMEs with their peers and with universities join forces and advance research on innovative capabilities by offering a logical reasoning for further research. The findings reveal that developing collaborative actions of shared resources, collaboration with competitors (coopetition), and relationship governance mechanisms of interfirm trust and open communication in the entrepreneurial ecosystem strengthen SMEs to get access to the best practices and business solutions, resulting in innovation capabilities, digital transformation, and globalization. This research bridges the gaps between scattered scholarship, anchors the concept of entrepreneurial ecosystem interaction, and promotes co-creation with decreased silos of collaboration. The conceptual framework is envisioned to establish a baseline for the SME business community to understand and endeavor different approaches to entrepreneurial ecosystem interactions in order to address the issues of lack of innovative capabilities and their less interest in R&D.