Measuring the efficiency of an entrepreneurial ecosystem at municipality level: does institutional transparency play a moderating role?

This study measures the output (start-ups) of an entrepreneurial ecosystem and estimates the moderating effect of institutional transparency on the relationship between entrepreneurial ecosystem and start-ups, applied to the context of Portuguese municipalities. Using factor analysis, a composite index of entrepreneurial ecosystem is constructed. The empirical results reveal that institutional transparency catalyzes the positive effect of entrepreneurial ecosystem index on the start-ups.