Management Science Letters (Jun 2018)
A cross-country comparative study of entrepreneurship ecosystem using the metafrontier Malmquist method
Abstract
Evaluation of the national entrepreneurship ecosystem is one of the most important measures that most countries are committed to. This study evaluates the entrepreneurship ecosystem of the coun-tries in accordance with the Global Entrepreneurship index (GEI) and based on the metafrontier Malmquist approach. The metafrontier Malmquist method helps to find the pattern of change for each country, to perform analyses dynamically, to identify the effects of technical and technology changes among the total changes (Malmquist), and to consider the region and level of the countries in analyses (metafrontier). The data Global Entrepreneurship index for 132 countries from 2016 to 2017 are derived from the reports of the Global Entrepreneurship and Development Institute. Results show that the productivity of the entrepreneurship ecosystem generally increased, but the deeper analysis indicates that this improvement was due to the technology improvement, not the technical efficiency improvement. Meanwhile, the North America region has had the best technical performance in the development of entrepreneurship ecosystem, and other areas, especially Latin America, and The Caribbean and South Asia have experienced a decline in technical efficiency. It was also found that East Asia, and Pacific, Middle East and North Africa and North America maintained a technology gap in the area of entrepreneurship ecosystems, and Latin America and The Caribbean and South Asia regions had the potential to develop technological standards. By analyzing the metafrontier, simple analysis of the entrepreneurship ecosystem performance was replaced with the deep analysis, and a more comprehensive view was achieved in this area.
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