Motivations and obstacles to networking in a university business incubator

Abstract

Business incubators strive to develop robust business and social networks to bring value to their resident companies in the form of intellectual and material resources. Yet, information about what motivates resident companies to participate in networking activities and the obstacles they face in trying to build effective networks is limited. This study employs a communication perspective to examine the process of incubation in an award-winning university business incubator. Using a combination of network analysis and in-depth interviews, the case study reveals the nature of communication in the internal network of 18 resident companies and the incubator administrators. Despite being on the cutting edge of innovations in technology use, study findings reveal face-to-face interaction in the incubator is predominant. The physical proximity of resident companies at the incubator influences who they talk to the most, suggesting incubator site design is important in creating an entrepreneurial environment. The case study also indicates resident company motivations for networking include a strong desire for social support to help manage stress, security of membership in an in-group, and increased access to material or information resources. The primary obstacles residents face to participating in networking and building relationships with each other include extreme time limitations during the early start-up phase, lack of ongoing information about other residents, and lack of trust related to keeping information about innovations and funding sources secure. Implications of these findings and recommendations for incubator managers for building successful and sustainable communication networks conclude the article.