Dynamic Configurations of Entrepreneurial Ecosystem Elements for Blended Value Creation

ABSTRACT Sustainable entrepreneurship has become a topic of increasing attention in literature, policy, and in managerial practice. Yet, the connection between sustainable entrepreneurial action and contextual elements associated with the entrepreneurial ecosystems in which these individuals are embedded remains an elusive topic. To address this gap, we aim in this research to investigate how sustainable entrepreneurs combine the various elements of the entrepreneurial ecosystem to create blended value (social, economic, and environmental). By adopting an agent‐centric perspective—data collection via questionnaires based on subjective evaluations—we are able to dig deeper into the views of entrepreneurs concerning the impacts generated by entrepreneurial ecosystems' features. We adopt Partial Least Squares Structural Equation Modeling (PLS‐SEM) and fuzzy‐set Qualitative Comparative Analysis (fsQCA) techniques to analyze a sample of entrepreneurs that took part in the Innovative Research in Small Business funded by the São Paulo Research Foundation, a policy program designed to provide seed funding and support for knowledge‐intensive entrepreneurs in the region. PLS‐SEM results demonstrated that only social and cultural factors impact blended value creation. Complementary fsQCA results provided more detailed and nuanced insights into the complex causal relationships between ecosystem elements and the value creation, considering three configurations that exert heterogeneous effects. Overall, findings revealed a need for more alignment between the entrepreneurial ecosystems' elements and blended value creation. As such, sustainable transitions in the analyzed region seem to require more active initiatives targeted at creating a more nurturing environment for blended value creation in the analyzed context.