The Interplay Between Spatial Characteristics and Digital Technologies on Successful VBI Creation

Abstract

Business incubators are support structures that aim to increase new venture success. Available digital technologies have motivated business incubator managers to explore new ways in which they can effectively support nascent entrepreneurs online. This has increased in importance due to the COVID-19 pandemic. While many business incubators have incorporated digital strategies to support nascent entrepreneurs online, some others have used digital infrastructures and digital platforms to emerge and operate as fully virtual. Given the recent surge of virtual business incubators (VBIs) and the important contribution they make to regional and rural communities, little is known about why and how they are created and how they maintain their operations over time. This paper contributes to our understanding of the interplay between spatial characteristics and digital technologies alongside with incubatees’ perceptions, needs and wants for successful VBI creation and development. The findings empirically captured the motives of the VBI founder based on geographical barriers in rural entrepreneurial ecosystems in Australia and how a digital platform was used to address many of the geographical barriers and challenges faced by rural female entrepreneurs. Our study paves the way for future research on VBIs and external enablers of venture creation and development.