Cultivating the ecosystem: How social exchange sows the seeds of entrepreneurial contributions

Abstract

Entrepreneurs benefit significantly from resources within their entrepreneurial ecosystems, but under what conditions do they decide to contribute back (a mechanism called downward causation) and thus revitalize the ecosystem they originated from? Drawing on social exchange theory, we develop a set of drivers of such contribution behaviors and test their influence through a metric-conjoint experiment involving 234 entrepreneurs. Our findings confirm the impact of social exchange theory constructs on entrepreneurs' contribution behaviors and highlight the moderating effects of personal traits—in particular, self-interest and other-orientation—on these dynamics. The key insight of our study is that social exchange structures and entrepreneurs’ relational contexts shape contribution behaviors that underlie the microfoundational dynamics of ecosystem development. This investigation underscores the importance of social structures within entrepreneurial ecosystems and enhances our understanding of the micro-level mechanisms that sustain ecosystem health and development. Furthermore, it offers practical insights that transcend traditional policy approaches, focusing on tailored strategies for cultivating entrepreneur-centered ecosystems.