Understanding Incubated Startups’ Continuance Intention towards Entrepreneurial Incubation Platforms: Empirical Evidence from China

Abstract

In recent years, despite the rapid growth in the number of entrepreneurial incubation platforms in China, many of them are experiencing the sustainability dilemma caused by the loss of incubated startups. However, there is a dearth of research that explores how to promote incubated startups’ continuance intention towards entrepreneurial incubation platforms. Addressing this gap, the present study develops a dedication–constraint model based on the dual model framework, investigating the distinct impacts of entrepreneurial support and relationship-specific investment on incubated startups’ continuance intention towards entrepreneurial incubation platforms. A sample of 534 incubated startups in China was employed to test the research model, and the structural equation modelling was adopted for data analysis. Empirical results indicate that the dedication-based mechanism and constraint-based mechanism simultaneously, yet differently, affect incubated startups’ continuance intention towards entrepreneurial incubation platforms. Specifically, in the dedication-based mechanism, social support and technical support are revealed as the antecedents to relationship satisfaction that significantly leads to benefit-based dependence. As for the constraint-based mechanism, setup activity is the only salient indicator to termination costs, which consequently has a positive effect on cost-based dependence. Incubated startups’ continuance intention towards entrepreneurial incubation platforms is influenced by both benefit-based dependence and cost-based dependence, ultimately.