Second-Order Knowledge Intermediaries and Multi-Country Entrepreneurial Entry into a Nascent Industry

How can a knowledge intermediary support industry development and entrepreneurial entry in countries where it is not present? This study introduces a two-stage model of multi-country entrepreneurial entry via second-order knowledge intermediaries (SOKIs). In Stage 1, SOKIs acquire and develop industry-building knowledge and capabilities from engagement with the activities of carrying, co-creating, capacity building, and convening of a first-order knowledge intermediary (FOKI). In Stage 2, motivated SOKIs implement these activities in secondary countries, supporting local industry development. The model is developed in the context of the clean cookstove industry, which addresses global health and environmental challenges among low-income populations. Qualitative evidence from 25 interviews and archival data were used to describe how SOKIs learned transferable knowledge and capabilities in primary countries. A quantitative analysis of data derived from 1,996 clean cookstove organizations operating across 113 countries (2013–2019) was conducted to assess whether a greater number of SOKIs in secondary countries was associated with increased entrepreneurial entries. Results support the model; more SOKIs were associated with more entrepreneurial entries, and this relationship was weakened when company and nonprofit SOKIs were imbalanced and when more domestic industry actors possessed overlapping knowledge. This study contributes to the literature on industry emergence by introducing a mechanism of non-firm-led, cross-border knowledge diffusion in mission-oriented industries. It also shows how local entrepreneurs in under-resourced contexts can access global knowledge—not through firms or FOKIs but through SOKIs that extend the FOKIs’ work. Funding: This work was supported by funding from the University of Michigan, including the C.K. Prahalad Initiative, the Dow Sustainability Fellows Program [funded by The Dow Company Foundation], the International Institute, the Rackham Graduate School, and the Ross School of Business. Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2021.15661 .