Navigating institutional voids in African entrepreneurial ecosystems: insights from innovation hubs in Ghana and Kenya

Abstract

Purpose Innovation hubs have become ubiquitous in the entrepreneurial ecosystems of African countries. However, it remains contested how far they promote start-up development at the micro level and shape the entrepreneurial ecosystem at the macro level, thus necessitating further examination. Design/methodology/approach This paper draws on institutional theory to explore how innovation hubs promote start-ups and to what extent they develop into key stakeholders in entrepreneurial ecosystems characterized by institutional voids. We followed a qualitative research design and conducted 28 semi-structured interviews with start-ups affiliated with Innohub (Accra) and iHub (Nairobi). Findings We find that innovation hubs are key actors of entrepreneurial ecosystems in African countries, helping to overcome institutional voids by providing numerous services, such as access to capital, reliable and cost-effective infrastructure and meaningful events, including training, workshops and coaching, to start-ups. Additionally, they create an internal and external community of like-minded entrepreneurs who strongly benefit from peer-to-peer learning and practical collaborations. Originality/value We argue that innovation hubs are institutional intermediaries that help overcome institutional voids in African entrepreneurial ecosystems. At the same time, we challenge the deficit-focused view of institutional voids theory by showing that hubs create hybrid institutional forms rooted in local contexts, serving as sites of institutional emergence. We also link micro-level hub practices to macro-level ecosystem dynamics, offering grounded insights into how innovation hubs shape entrepreneurial ecosystems in African countries.