Proceedings of The 5th International Conference on Advanced Research in Business, Management and Economics
Distrust as a Challenge of Nascent Entrepreneurial Ecosystems Creation
Relying on Network- and Social Capital theory, I analyzed how distrust affects the structure of nascent Entrepreneurial Ecosystems in the nascent Entrepreneurial Ecosystem in Panama City. Based on previous research, I propose that entrepreneurial support organizations inherit a crucial role during the early stages of EEs. By intermediating between otherwise unconnected nodes, creating a shared identity, and decreasing distrust between these actors, they contribute to the creation of a dense, innovative community-led by themselves. In this community, knowledge flows more easily. As the entrepreneurial support organization is respected and trusted by most other actors of the ecosystem, the system naturally builds around this anchor organization. This way, distrust among other actors can decrease through the intermediation efforts of the anchor organizations. This allows for a decentralization of the system, building new sub-communities around other actors. I further provide empirical evidence drawing on qualitative interviews and network analysis based on Twitter data supporting my theoretical thoughts.
keywords: Emerging Economies, Innovation, Networks, Structural Holes, Twitter.