Driving the financial performance of textile firms: the role of entrepreneurial ecosystems

Purpose The present work looks into the relationship between entrepreneurial ecosystems (EEs) and firm performance, considering some drivers such as differentiation strategy and firm size. The aim is to understand how some firms’ specific characteristics are intertwined within their EEs and influence financial performance. Design/methodology/approach We conducted a panel data analysis on 325 companies within the textile sector across 20 NUTS-2 Italian regions, using secondary data from 2013 to 2019. Findings The results point out that regional EEs positively influence financial performance. Moreover, differentiation strategy and firm size represent key moderating variables, either fostering or hindering this positive relationship. Practical implications The findings seek to support practitioners in their innovative investment choices to improve firm performance. Larger firms should build stronger relationships with the surrounding EEs to exploit their positive impacts effectively. In such a context, policymakers should strengthen regional EEs, promote innovation and foster collaboration among firms. Originality/value This study enriches the academic debate on the interplay between EEs and firm performance by combining firm and regional-level data as well as exploring the effect of differentiation strategy and firm size within the textile industry.