Community embeddedness as a catalyst during crises: innovation among tech entrepreneurs in central and peripheral areas

Purpose This study uncovers the untapped power of community embeddedness in fostering regional innovation during crises. Building upon traditional agglomeration frameworks that underscore knowledge spillovers and external support in central regions, our research reveals the critical role of emotional connections within communities as a complementary mechanism. Design/methodology/approach Using mixed methods, analyzing data from tech entrepreneurs, we demonstrate that community embeddedness, driven by emotional bonds, enhances innovation beyond contextual factors such as opportunities and external support. Findings Our findings suggest that agglomeration frameworks, while foundational, can be enhanced by incorporating the emotional dimensions of community. Practical implications Policymakers must bolster community robustness instead of merely funding peripheral regions, as it activates contextual factors that enhance innovation. Originality/value This study introduces community embeddedness as a critical yet overlooked driver of innovation during crises, challenging traditional agglomeration theories that emphasize external resources and knowledge spillovers. By integrating emotional bonds—trust, familiarity and shared responsibility–we demonstrate how entrepreneurs leverage social capital to drive innovation. Our mixed-methods approach reveals that peripheral entrepreneurs struggle to activate these resources, while those in central hubs translate them into tangible outcomes. This shifts policy focus from resource redistribution to community resilience, emphasizing the need to cultivate emotional and social capital as key innovation enablers across regions, particularly in crisis-affected entrepreneurial ecosystems.