Abstract
Recently, the topic about ecosystems and universities has raised interest among scholars, practitioners, and policymakers. This paper explores the impact of the entrepreneurial ecosystem on family business performance in the United Arab Emirates (UAE) and the moderating effect of universities in these relationships. To find out these relationships, a questionnaire was distributed to 350 family businesses that operate in the UAE, yielding a sample of 321 replies (responding rate of 91.7%). Structural equation modeling with partial least squares analysis (PLS-SEM) was used to evaluate the measurement and the structural model. Findings show that all entrepreneurial ecosystem pillars have a positive impact on the family business performance, while universities do not moderate the relationship between ecosystem and performance. A conceptual model, implications, limitations, and future research avenues are provided as well.
Similar content being viewed by others
Data Availability
Data available upon request.
References
Abdullah, M. N. (2021). Family entrepreneurship and banking support in Kuwait: Conventional vs Islamic banks. Journal of Family Business Management, 11(3), 313–331.
Agarwal, S., Agrawal, V., Ramadani, V., Dixit, J. K., & Gërguri-Rashiti, S. (2023). An empirical investigation and assessment of entrepreneurial learning factors: A DEMATEL approach. Journal of Research in Marketing and Entrepreneurship, 25(1), 127–149.
Agarwal, S., Ramadani, V., Gerguri-Rashiti, S., Agrawal, V., & Dixit, J. K. (2020). Inclusivity of entrepreneurship education on entrepreneurial attitude among young community: Evidence from India. Journal of Enterprising Communities: People and Places in the Global Economy, 14(2), 299–319.
Ahmad, T. (2020). Universities preparing students for future challenges of family business enterprises. World Journal of Entrepreneurship, Management, and Sustainable Development, 16(2), 57–69.
Alghanim, O. (2021). The family way: How the Gulf could create a more sustainable private sector. CEO Middle East. Retrieved on 26 December 2022 from: https://www.ceo-middleeast.com/innovation/463156-how-the-gulf-could-could-create-more-sustainable-private-sector
Alkaabi, K. (2020). Effects of the geographic distribution of small and medium-sized enterprises on growth, innovation, and economic contributions: A case study of UAE. International Journal of Applied Geospatial Research, 11(4), 23–41.
Alkaabi, K., & Ramadani, V. (2022). A framework for the university performance assessment: Some insights on innovation, technology and entrepreneurship. International Journal of Technology Enhanced Learning, 14(3), 264–285.
Aloulou, W. J., Algarni, E. A., Ramadani, V., & Hughes, M. (2023). Passionate to be a social entrepreneur in Saudi Arabia: A moderated mediation analysis of social entrepreneurial intention. Business Ethics, the Environment & Responsibility. https://doi.org/10.1111/beer.12510
Alves, C., & Gama, A. (2020). Family business performance: A perspective of family influence. Revista Brasileira De Gestao De Negocios, 22(1), 163–182.
Audretsch, D., & Thurik, R. (2004). A model of the entrepreneurial economy. International Journal of Entrepreneurship, 2(2), 143–166.
Ayitey, C., & Kamasa, K. (2021). Firm performance in Ghana: The role of infrastructure. African Journal of Business and Economic Research, 16(3), 61–83.
Bagozzi, R. P., Yi, Y., & Phillips, L. W. (1991). Assessing construct validity in organizational research. Administrative Science Quarterly, 36(3), 421–458.
Bennett, L. (2019). Infrastructure investments and entrepreneurial dynamism in the U.S. Journal of Business Venturing, 34(5), 1059073.
Bichler, B. F., Kallmuenzer, A., Peters, M., Petry, T., & Clauss, T. (2022). Regional entrepreneurial ecosystems: How family firm embeddedness triggers ecosystem development. Review of Managerial Science, 16(1), 15–44.
Bosio, G., Minola, T., Origo, F., & Tomelleri, S. (2018). Rethinking entrepreneurial human capital: The role of innovation and collaboration. Springer.
Brice, W. D., & Jones, W. D. (2008). The cultural foundations of family business management: Evidence from Ukraine. Eurasian Journal of Business and Economics, 1(1), 1–23.
Brown, R., & Mason, C. (2017). Looking inside the spiky bits: A critical review and conceptualisation of entrepreneurial ecosystems. Small Business Economics, 49(1), 11–30.
Bygrave, D.W., & Quill, M. (2007), Global Entrepreneurship Monitor: Financing Report, Massachusetts and London: Babson College and London Business School.
Calabrò, A., Vecchiarini, M., Gast, J., Campopiano,G., De Massis, A. & Kraus, S. (2019). Innovation in Family Firms: A Systematic Literature Review and Guidance for Future Research. International Journal of Management Reviews, 21(3), 317–355.
Carayannis, E. G., Grigoroudis, E., Campbell, D. F. J., Meissner, D., & Stamati, D. (2017). The ecosystem as helix: An exploratory theory-building study of regional co-opetitive entrepreneurial ecosystems as quadruple/quintuple helix innovation models. R&D Management, 48(1), 148–162.
Cavallo, A., Ghezzi, A., & Balocco, R. (2019). Entrepreneurial ecosystem research: Present debates and future directions. International Entrepreneurship and Management Journal, 15(4), 1291–1321.
Chabrak, N., Thomas, D.W.L., Bascavusoglu-Moreau, E., Bouhaddioui, C., Coduras, A., & Ismail, T. (2021). Global Entrepreneurship Monitor UAE: Special Report United Arab Emirates 2019 / 2020. Abu Dhabi: UAEU and GERA.
Chen, J., Cai, L., Bruton, G. D., & Sheng, N. (2020). Entrepreneurial ecosystems: What we know and where we move as we build an understanding of China. Entrepreneurship & Regional Development, 32(5/6), 370–388.
Corrente, S., Greco, S., Nicotra, M., Romano, M., & Schillaci, C. E. (2018). Evaluating and comparing entrepreneurial ecosystems using SMAA and SMAA-S. The Journal of Technology Transfer, 44(2), 485–519.
Dana, L.-P., Palalić, R., & Ramadani, V. (2021). Entrepreneurship in the Gulf Cooperation Council Countries. World Scientific.
Drover, W., Busenitz, L., Matusik, S., Townsend, D., Anglin, A., & Dushnitsky, G. (2017). A review and road map of entrepreneurial equity financing research: Venture capital, corporate venture capital, angel investment, crowdfunding, and accelerators. Journal of Management, 43(6), 820–1853.
Elnadi, M., & Gheith, M. H. (2021). Entrepreneurial ecosystem, entrepreneurial self-efficacy, and entrepreneurial intention in higher education: Evidence from Saudi Arabia. The International Journal of Management Education, 19(1), 100458.
Emergent Research and Intuit. (2014). The new entrepreneurial mindset. Retrieved on December 22, 2022 from: https://www.smallbizlabs.com/2014/08/the-new-entrepreneurial-mindset.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+SmallBizLabs+%28Small+Biz+Labs%29
Emini, A., & Zeqiri, J. (2021). Social media marketing and purchase intention: Evidence from Kosovo. Ekonomska Misao i Praksa, 30(2), 475–492.
Eshtrefi, L. (2023). Family business in United Arab Emirates. In V. Ramadani, W. Aloulou and M. Zainal (Eds.). Family Business in Gulf Cooperation Council Countries. Cham: Springer.
Fayolle, A., & Gailly, B. (2015). The impact of entrepreneurship education on entrepreneurial attitudes and intention: Hysteresis and persistence. Journal of Small Business Management, 53(1), 75–93.
Federal Competitiveness and Statistics Centre (2020). Reference: Federal Competitiveness and Statistics Centre (2020). UAE Competitiveness. Retrieved April 15, 2023, from https://fcsc.gov.ae/en-us
Fernandes, C., Ramirez-Pasillas, M., & Ferreira, J. (2021). Universities, Entrepreneurial Ecosystems, and Sustainability. De Gruyter.
Ferreira, J., Fernandes, C., Veiga, P., & Dooley, L. (2022). The effects of entrepreneurial ecosystems, knowledge management capabilities and knowledge spillovers on international open innovation. R&D Management, 50(5), 599–613.
Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics. Journal of Marketing Research, 18(3), 382–388.
Gashi, G., & Ramadani, V. (2013). Family businesses in Republic of Kosovo: Some general issues. In V. Ramadani and R.C. Schneider (Eds.), Entrepreneurship in the Balkans. Berlin: Springer.
Guin, D., & Tinnen, C. (2017). Financing sources and solutions for family business growth capital needs. Retrieved on December 25, 2022 from: https://www.familybusinessmagazine.com/financing-sources-and-solutions-family-business-growth-capital-needs
Hair, J. F., Jr., Matthews, L. M., Matthews, R. L., & Sarstedt, M. (2017). PLS-SEM or CB-SEM: Updated guidelines on which method to use. International Journal of Multivariate Data Analysis, 1(2), 107–123.
Hair, J. F., Jr., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European Business Review, 26(2), 106–121.
Hair, J. F., Jr., Sarstedt, M., Matthews, L. M., & Ringle, C. M. (2016). Identifying and treating unobserved heterogeneity with FIMIX-PLS: Part I–method. European Business Review, 28(1), 63–76.
Hechavarría, D. M. & Ingram, A. E. (2019). Entrepreneurial ecosystem conditions and gendered national-level entrepreneurial activity: a 14-year panel study of GEM. Small Business Economics, 53(2), 431–458.
Hisrich, D. R., & Ramadani, V. (2017). Effective Entrepreneurial Management. Springer.
Hisrich, D. R., Peters, M., & Shepherd, A. D. (2020). Entrepreneurship (11th ed.). McGraw-Hill.
Isenberg, D. (2011). The Entrepreneurship Ecosystem Strategy as a New Paradigm for Economic Policy: Principles for Cultivating Entrepreneurship, the Babson Entrepreneurship Ecosystem Project. Massachusetts: Babson College.
Jansen, K., Michiels, A., Voordeckers, W., & Steijvers, T. (2022). Financing decisions in private family firms: A family firm pecking order. Small Business Economics. https://doi.org/10.1007/s11187-022-00711-9
Jordão, R. V. D., & Novas, J. C. (2022). Information and knowledge management, intellectual capital, and sustainable growth in networked small and medium enterprises. Journal of the Knowledge Economy. https://doi.org/10.1007/s13132-022-01043-5
Khan, I., Fujun, H., Muhammad, I., Abdulrasheed, Z., & Hoang, P. L. (2021). Does energy trilemma a driver of economic growth? The roles of energy use, population growth, and financial development. Renewable and Sustainable Energy Reviews, 146(1), 111157.
Kraus, S., Rigtering, J. P. C., Hughes, M., & Hosman, V. (2012). Entrepreneurial orientation and the business performance of SMEs: A quantitative study from the Netherlands. Review of Managerial Sciences, 6(2), 161–182.
Krishnan, N. (2020). Developing culture in family business. NHRD Network Journal, 13(1), 84–90.
Krueger, N., Liñán, F., & Nabi, G. (2013). Cultural values and entrepreneurship. Entrepreneurship and Regional Development, 25(9/10), 703–707.
Kshetri, N. (2015). Success of crowd-based online technology in fundraising: An institutional perspective. Journal of International Management, 21(2), 100–116.
Lakshmanan, T. R. (1982). A systems model of rural development. World Development, 10(10), 885–898.
Liñán, F. & Fayolle, A. (2015). A systematic literature review on Entrepreneurial Intentions: Citation, Thematic Analyses, and Research Agenda. International Entrepreneurship and Management Journal, 11(4), 907–933.
Mark, R. (1996). Research Made Simple: A Handbook for Social Workers. Sage.
Mason, C., & Brown, D. R. (2014). Entrepreneurial Ecosystems and Growth Oriented Entrepreneurship. Hague: OECD LEED Programme and the Dutch Ministry of Economic Affairs.
Ministry of Economy. (2021). United Arab Emirates. The UAE Economy Indicators. Retrieved on 26 December 2022 from: https://www.moec.gov.ae/en/economic-indices
Ministry of Finance. (2021). United Arab Emirates: Mohammed Bin Rashid Innovation Fund. Retrieved on 28 December 2022 from: https://www.mof.gov.ae/en/About/programsProjects/Pages/MohamedBinRashidInnovationBox.aspx
Murati-Leka, H., & Fetai, B. (2022). Government and innovation performance: Evidence from the ICT enterprising community. Journal of Enterprising Communities: People and Places in the Global Economy. https://doi.org/10.1108/JEC-12-2021-0174
Murphy, G. B., Trailer, J. W., & Hill, R. C. (1996). Measuring performance in entrepreneurship research. Journal of Business Research, 36(1), 15–23.
Nair, D. (2022). The UAE economy’s transformation under Sheikh Khalifa’s leadership. Retrieved on 26 December 2022 from: https://www.thenationalnews.com/business/economy/2022/05/14/how-the-uae-economy-transformed-under-sheikh-khalifas-leadership/
Noelia, F. L., & Rosalia, D. C. (2020). A dynamic analysis of the role of entrepreneurial ecosystems in reducing innovation obstacles for startups. Journal of Business Venturing Insights, 14(11), e00192.
Omari, Y. (2020). What is Dubai’s new family business law and why has it been introduced? The National News, 09.2020. Retrieved on 26 December 2022 from: https://www.thenationalnews.com/business/comment/what-is-dubai-s-new-family-business-law-and-why-has-it-been-introduced-1.1081028
Palalić, R., Ramadani, V., Ðilović, A., Dizdarević, A., & Ratten, V. (2017). Entrepreneurial intentions of university students: A case-based study. Journal of Enterprising Communities: People and Places in the Global Economy, 11(3), 393–413.
Palalić, R., Razzak, M.R., Al Riyami, S., Dana, L.P., & Ramadani V. (2023). Family business in Bahrain. In V. Ramadani, W. Aloulou and M. Zainal (Eds.). Family Business in Gulf Cooperation Council Countries. Cham: Springer.
Pett, M. A., Lackey, N. R., & Sullivan, J. J. (2003). Making Sense of Factor Analysis: The Use of Factor Analysis for Instrument Development in Health Care Research. Sage.
Ramadani, V., Aloulou, W., & Zainal, M. (2023a). Family Business in Gulf Cooperation Council Countries. Springer.
Ramadani, V., Alserhan, B., Dana, L.P., Zeqiri, J., Terzi, H., & Bayirli, M. (2023b). Research on Islamic business concepts: Proceedings of the 12th Global Islamic Marketing Conference, December 2021. Cham: Springer.
Ramadani, V., Memili, E., Palalić, R., & Chang, E. (2020). Entrepreneurial Family Businesses: Innovation, Governance, and Succession. Springer.
Ramadani, V., Palalić, R., Dana, L-P., & Bico, A. (2021). Entrepreneurship in Kuwait. In Dana, L-P., Palalić, R. & Ramadani, V. (Eds). Entrepreneurship in the Gulf Cooperation Council Countries. New York: World Scientific.
Ranwala, R. S. (2016). Family background, entrepreneurship specific education and entrepreneurial knowledge in venture creation: The moderation effect of gender. Entrepreneurship and Innovation Management Journal, 4(4), 172–186.
Raposo, M., Fernandes, C., & Veiga, P. (2022). We dreamed a dream that entrepreneurial ecosystems can promote sustainability. Management of Environmental Quality, 33(1), 86–102.
Ringle, C.M., Wende, S., & Becker, J.-M. (2022). SmartPLS 4. Oststeinbek: SmartPLS GmbH.
Roundy, P. T., Bradshaw, M., & Brockman, B. K. (2018). The emergence of entrepreneurial ecosystems: A complex adaptive systems approach. Journal of Business Research, 86(5), 1–10.
Sadiku-Dushi, N., Dana, L. P., & Ramadani, V. (2019). Entrepreneurial marketing dimensions and SMEs performance. Journal of Business Research, 100(7), 86–99.
Salamzadeh, A., & Ramadani, V. (2021). Entrepreneurial ecosystem and female digital entrepreneurship: Lessons to learn from an Iranian case study. In S. Rezaei, J. Li, S. Ashourizadeh, V. Ramadani, & S. Gërguri-Rashiti (Eds.), The Emerald Handbook of Women and Entrepreneurship in Developing Economies (pp. 317–334). Bingley.
Saleh, Y. (2021). ICT, social media and COVID-19: Evidence from informal home-based business community in Kuwait City. Journal of Enterprising Communities: People and Places in the Global Economy, 15(3), 395–413.
Shwetzer, C., Maritz, A., & Nguyen, Q. (2020). Entrepreneurial ecosystems: A holistic and dynamic approach. Journal of Industry - University Collaboration, 1(2), 79–95.
Soleimanof, S., Rutherford, W. M., & Webb, J. W. (2018). The intersection of family firms and institutional contexts: A review and agenda for future research. Family Business Review, 31(1), 32–53.
Spigel, B. (2017). The relational organization of entrepreneurial ecosystems. Entrepreneurship Theory and Practice, 41(1), 49–72.
Thanasi-Boçe, M., Zeqiri, J., & Kurtishi-Kastrati, S. (2022). The role of social media usage and engagement on purchase intentions for fashion brands. International Journal of E-Services and Mobile Applications, 14(1), 1–14.
The Crown Prince Court. (2022). History of the UAE. Retrieved on 26 December 2022 from: https://www.cpc.gov.ae/en-us/theuae/Pages/History.aspx
The Emirates Development Bank. (2021). Empowering your business when you need it most. Retrieved on 26 December 2022 from: https://www.edb.gov.ae/en
Theodoraki, C., Dana, L. P., & Caputo, A. (2022). Building sustainable entrepreneurial ecosystems: A holistic approach. Journal of Business Research, 140(2), 346–360.
Toska, A., Ramadani, V., Dana, L.-P., Rexhepi, G., & Zeqiri, J. (2022). Family business successors’ motivation and innovation capabilities: The case of Kosovo. Journal of Family Business Management, 12(4), 1152–1166.
Trang, H. T. T., & Hong, P. T. T. (2021). Measuring the impact of infrastructure quality on firm performance: A review of literature, metrics, and evidence. Advances in Economics, Business and Management Research, 196(1), 211–220.
Trowers & Hamlins. (2021). Dubai law regulating family business ownership. Retrieved on 26 December 2022 from https://www.trowers.com/insights/2020/september/dubai-law-regulating-family-business-ownership
Van Gils, A., Dibrell, C., Neubaum, D. O., & Craig, J. B. (2014). Social issues in the family enterprise. Family Business Review, 27(3), 193–205.
World Economic Forum. (2014). Entrepreneurial Ecosystems Around the Globe and Early-Stage Company Growth Dynamics: The Entrepreneur’s Perspective. WEF.
Zainal, M. (2022). Innovation orientation and performance of Kuwaiti family businesses: Evidence from the initial period of COVID-19 pandemic. Journal of Family Business Management, 12(2), 251–265.
Zapata-Cantu, L., Sanguino, R., Barroso, A., & Nicola-Gavrilă, L. (2022). Family business adapting a new digital-based economy: Opportunities and challenges for future research. Journal of the Knowledge Economy. https://doi.org/10.1007/s13132-021-00871-1
Zeqiri, J., Alserhan, B., Gleason, K., & Ramadani, V. (2022). Desecularization, social identity, and consumer intention to purchase religious products. Technological Forecasting and Social Change, 177(4), 121522.cxs.
Funding
This research was funded by the United Arab Emirates University (UAEU) Research and Sponsored Projects Office—Grant number G00003738.
Author information
Authors and Affiliations
Corresponding author
Additional information
Publisher's Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Supplementary Information
Below is the link to the electronic supplementary material.
Rights and permissions
Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.
About this article
Cite this article
Alkaabi, K., Ramadani, V. & Zeqiri, J. Universities, Entrepreneurial Ecosystem, and Family Business Performance: Evidence from the United Arab Emirates. J Knowl Econ (2023). https://doi.org/10.1007/s13132-023-01384-9
Received:
Accepted:
Published:
DOI: https://doi.org/10.1007/s13132-023-01384-9
Keywords
- Entrepreneurial ecosystem
- Universities
- Family business
- Government
- Infrastructure
- Financing
- Cultural factors
- Social factors
- United Arab Emirates (UAE)