Performance Of Business Incubators Research Articles

The Influence of Social Capital, Entrepreneurial Competence and Entrepreneurial Ecosystem in Shaping Business Incubators in Indonesia

This study looks into how the entrepreneurial ecosystem, social capital, and entrepreneurial competence interact to influence how successful Indonesian business incubators are. Partial Least Squares Structural Equation Modeling (PLS-SEM) was the quantitative method used to examine the data collected from 275 entrepreneurs and incubator stakeholders. The evaluation of the measurement model demonstrated appropriate average variances extracted, strong loadings, and high composite reliabilities, all of which supported the validity and reliability of the selected indicators. Each latent variable's uniqueness was confirmed by discriminant validity analysis. Significant positive correlations between social capital, entrepreneurial competence, the entrepreneurial ecosystem, and the efficacy of business incubators were found by the structural model estimation. The suggested theoretical framework was validated by hypothesis testing, which showed that these elements interact to affect the performance of business incubators in Indonesia. A good fit was shown by the model fit assessment, supporting the structural model's validity. The results enhance our understanding from a theoretical and practical standpoint, offering policymakers, entrepreneurs, and stakeholders a comprehensive framework to maximize the conditions necessary for the success of business incubators.

Why entrepreneur sourcing matters: the effects of entrepreneur sourcing on alternative types of business incubation performance

This paper investigates the effects of entrepreneur sourcing on business incubation performance. We distinguish between internal and external sourcing concerning the organisation that sponsors business incubation activities. Entrepreneurs can be internally sourced, originating from the parent organisation to become startup founders or externally sourced and recruited from outside the parent organisation to lead and build the startup. Both in the literature and incubation practice, the entrepreneur's trajectory is usually taken for granted. We contribute to research by investigating the effects of entrepreneur sourcing on business incubator performance and by offering an alternate categorisation of these performance outcomes. We characterise three basic types of performance outcomes: learning, earning, and returning. During this study, we identified a fourth outcome, namely branding. We examined eight cases at two corporate business incubators. Our findings suggest that internally and externally sourced entrepreneurs affect performance outcomes differently. Contrary to our expectations, we found that internal entrepreneurs contribute to exploratory learning, whereas external entrepreneurs contribute to exploitative learning. Furthermore, our results suggest that internal entrepreneurs generate earnings for the sponsorship organisation and external entrepreneurs contribute to a returning outcome by benefitting society at large. We conclude this study with a tentative conceptual model for future research into incubator design and for managers to align the setup of their incubator programmes to their specific purposes.

Proposal for a Set of Business Incubator Performance Metrics Based System and Model Analysis

Business incubators performance is usually examined in econometric terms rather than process functional operation, efficiency and effectiveness. The research being conducted focuses on the identification of a model describing BI operation, the points of need/provision of information as necessary to support decision-making for the management and monitoring of the system efficiency and effectiveness. One of the by-products of the conducted research has been the opportunity to suggest some metrics and Key Performance Indicators (KPI) specifically designed to measure process operation effectiveness and efficiency (including the impact of residents’ failure before or after graduation). The defined metrics and KPI address mostly the internal operation and management of a Business Incubators with the aim to maximise efficiency and effectiveness of the process while catering for residents’ needs.

Identifying critical success factors for university business incubators in Saudi Arabia

Business incubators are a major tool in entrepreneurial eco-system of any country and forms the backbone of economic development initiatives. One of the greatest adaptations of business incubators came through universities especially public sector universities. This is due to the university's understood responsibility of supporting science and society development and ultimately providing all the new businesses' requirements in science and technology. Saudi Arabia has taken robust measures to develop and improve the local entrepreneurial eco-system by establishing and nurturing business incubators, especially university business incubators. In a small frame of time, Saudi business incubators have produced many innovate solutions for the technology, economic and social challenges. Due to multifaceted functionality and lack of standard evaluation criteria the business incubator performance became very important topic in Saudi Arabia. The purpose of this research is to develop critical success criteria for business incubators in Saudi Arabia. Survey methodology was employed to collect the data. Data were analyzed in many ways. Firstly, based on the survey results, list of success criteria for business incubators performance was presented. Secondly, descriptive analysis shows that top three critical factors include (a) coaching and mentoring hours, (b) number of services and supports offered; and (c) access to funds in terms of total attractive investment. While the least important factors considered were (a) affiliation with the university, (b) time limit to tenancy, and (c) numbers of IPOs launched. Thirdly, factor analysis summarizes all the critical success factors for university business incubators and culminates into five big factors, including (a) support services; (b) network support; (c) financial support; (d) economic development;(e) alumni success. Finally, cluster analysis shows there are two major cluster groups in the data: (a) ‘employees’ of the incubators and (b) 'incubatees'. This research provides guidelines and critical success criteria for business incubators operating in Saudi Arabia or elsewhere.

Sustainable Government Policy: A Catalyst for Sustainable Incubator Performance

One of the policy tools that a government uses to actualize entrepreneurship development is the business incubation program. These government policies come in several forms: fiscal, financial, as well as developmental. The business incubation program has been acknowledged as an instrument to achieve economic development, hence, the adoption of the concept by various nations. Studies have been advanced concerning business incubation performance, however, empirical scholarly works have shown that such studies have been inconclusive for the reason that results of empirically validated studies were inconsistent. The key objective of this study is to examine the contribution of government policies in the relationship between the critical success factors (CSFs) and the incubator performance. The study involves a data collection process of tenant firms of the Nigerian business incubation program using a population of 253 and a sample size of 153 for questionnaire administration and a focus group interview comprising of 10 respondents, which cut across both tenant firms and incubator managers. The results show that the independent variables and the moderator are indeed predictors of the criterion variable. As the predictors contributed merely 29.4% of the criterion variable, future studies may perhaps examine other critical factors alongside the extant constructs, which may contribute further to incubator performance.

Stimulating business incubation performance: role of networking, university linkage and facilities

ABSTRACT Business incubators have emerged worldwide as highly popular methods for promotion of economic development in the industrialised and emerging economies. The present study tries to analyse the role of Networking; linkage with university and Facilities on Technology Business Incubation (TBI) performance. The study uses PLS-SEM to design a model collecting data from 60 managers of TBIs in India. Prior studies have taken Networking; Linkage with University and Facilities as independent variables and the mediating role of facilities has not been examined earlier. This motivated the researchers’ to examine this. The findings support the role of networking on TBI performance. In case of Linkage with University with facilities as mediating variable the indirect effect is 0.54 and direct effect becomes negative and insignificant highlighting full mediation of facilties. Networking and linkage with University emerge as important predictors to stimulate TBI performance. Implications of the study: The present model can help the TBI managers to execute their functions in an effective and productive way with due focus on linkage with universities through facilities to stimulate TBI performance. The results of positive and significant impact of networking on TBI performance can serve to help TBI managers better serve their clients.

Measuring Performance of Business Incubators: A Literature Review and Theoretical Framework Development

Business Incubation is one of the latest concept in promoting entrepreneurship in global economy. Concept which originated in 1958 at Batavia, United States is now hot buzz around the world. The present study provides a conceptual framework developed through identified strategic performance indicators (SPIs) used or suggested by authors for mapping performance of Business Incubators (BIs). The conceptual framework embarks SPIs both for BI management and incubatees which together constitute major stake holding in BIs. The SPIs have been identified from extensive literature review of correlated research articles from 1990 to 2017. The research is suggestive of that least number of authors have used IPRs as SPI in their PMS, frequently used SPI in literature is survival rate of incubatee firms. Intangible factors have not been given due weightage by authors in their PMS The study is also suggestive of that most of the PMS adopted in BIs are not holistic in approach as they ignore assessment of incubatees at various stages of BIP. A conceptual framework is proposed based on segregation of identified SPIs amongst incubator manager and incubatees. The framework depicts the need and importance of Operational performance indicators for each identified SPIs.

Performance Factors for Successful Business Incubators in Indonesian Public Universities

Measuring the performance of business processes is already a main concern for both faculty and enterprise players, since organizations are motivated to reach the productivity stage. Employing a performance achievement framework for the relationship between business incubator success factors will guarantee connection with commercial schemes, which support a high level of performance indicators in successful business incubator models. This research employs a quantitative approach, with the data analyzed using the IBM SPSS version 23 and Smart PLS version 3 statistical software packages. Employing a sample of 95 incubator managers from 19 universities which geographically located in Indonesia, it is shown that the image of business incubator factors has a positive effect on incubator performance. The study investigates the relationship between incubator performance and business incubator success factors in Indonesia. It was found that IT, as part of the business incubators' facets/abilities, partially supports their performance; that the entry criteria directly support the performance of the incubators; that mentoring networks also support the performance, with good infrastructure systems as a moderating factor; that funding supports the performance of business incubators, also with good infrastructure systems as a moderating factor; and that university regulations and government support and protection enhance the performance of business incubators, with credits and rewards as a moderating factor. In addition, a variety of indicators from the local context affiliate positively to promote a community that highlighted the incubators' strategies.

Measuring Performance of Business Incubators: A Literature Review and Theoretical Framework Development

Measuring Performance of Business Incubators: A Literature Review and Theoretical Framework Development

Developing the Performance of Business Incubators to Increase the Percentage of the Contribution of SMEs in the Saudi GDP to Achieve Vision 2030

Recently, Small 8 Medium Enterprises (SMEs) have been an important pillar for the growth and revitalization of the economy. However, the small business failure rate is larger than the rate of establishment. Business incubators (BIs) have been structured to support new ventures in order to raise the chance of success. This paper aims to discuss the impact of BIs on the performance of entrepreneurs and the national economy through forecasting the contribution of SMEs and private sectors in the Saudi Gross domestic product (GDP) in 2030 based on the data of General Authority of Statistics in Saudi Arabia from 2016 to 2019. Vision 2030 includes the specific targets that the government will establish more effective BIs to increase the contribution of SMEs in the total GDP from 20% to become 35 percent and increase the contribution of private sectors from 40% to 65%. It argues that although the forecasting contribution of SMEs and the private sector in the total Saudi GDP can surpass the targets of Vision 2030 by 39% and 67% respectively, the contribution of BIs in these goals is insignificant according to studies published in Saudi Arabia but it suggests that BIs may have a positive impact on the national economy in terms of increasing the number of jobs and GDP.

Innovation capability assessment on business incubators performance using resources, leadership and capability: An investigation in business incubators from Chile, Italy and Israel

This study aims to assess the innovation capabilities on the business incubators performance using resources, leadership and capability in three countries: Chile, Israel and Italy. This research was elaborated in light of theoretical excerpts, with foundation in the model, which considers the following metrics: resources, enablement and leadership. Furthermore, in order to demonstrate the feasibility and plausibility of the model, a multiple case study was conducted in business incubators. The research had specialists’ intervention, with knowledge and experience in the innovation management field, selected by the technical and scientific criteria. The data were extracted by a judging matrix with a scale type, in which the specialists gave their opinions, establishing priorities to the variables, by level of importance. In order to reduce the subjectivity in the results reached, it was used statistical techniques of multivariate analysis and multi-criteria analysis, with the support of the Electre III, Compromise Programming e Promethee II methods. The results were satisfactory, validating the modelling approach.Keywords: Innovation capabilities, innovation performance, assessment, business incubators.

The next frontier: Open innovation and knowledge absorptive capacity in business incubators: Towards the experience from Chile, Israel and Italy

This research aims to verify the relationship between the open innovation practices and knowledge absorptive capacity in business incubators from Chile, Israel and Italy. Furthermore, this research examines how this affects the outcomes (business incubators performance). The research was conducted in the light of theoretical excerpts and application of a survey to specialists, with knowledge about the investigated object, selected by scientific and technical criteria. The data were extracted by means of a matrix of judgement in which experts made their judgments about the variables investigated. In order to reduce subjectivity in the results achieved, the following methods were used: multicriterial analysis and neurofuzzy technology. The produced results were satisfactory, validating the presented proposal.Keywords: Open innovation practices, knowledge absorptive capacity, business incubators, business incubators performance, experience from Chile, Israel and Italy.

Entrepreneurial approach to the business incubator: a business models based of «Shared Value Canvas» and «Diversified Markets Canvas»

Innovations is the key driver for the developed countries intense economic growth. Small innovative ventures play a major role in the creation and development of the innovations. Any innovation implementation entails high risks. To reduce the risks the state has to come up with innovations support and incentives system which incorporates business-incubators as one of its elements. The most effective business incubators performance analysis results were used for development of business incubators successful operations basics. One of them is as follows: “A business incubator should be treated as business”. This statement is the cornerstone of the present article covering the particulars of technological business incubators business models development to be used as business planning and evaluation basics.

Do business incubators really enhance entrepreneurial growth? Evidence from a large sample of innovative Italian start-ups

Innovative start-ups are often considered to be a key source of innovation and job creation. As such they are the subject of several types of supportive public policies. This study examines the short-term and long-term effects of business incubators on the performance of innovative start-ups in terms of sales revenues and job creation. A large sample of N = 2544 innovative Italian start-ups, of which 606 were incubated, was followed over a period of up to six years. Tobit and Poisson regressions and propensity-score matching analyses point towards a significant negative effect of incubator tenancy on sales revenues and no significant effect of incubation on job creation. Findings also suggest that the initially negative effect of incubation on sales revenues turns into a positive effect in the long term. The effects of incubator characteristics, in terms of ownership, certification, and size on the growth of tenant start-ups were further analysed, but these effects were found to be negligible. The study contributes to the literature on the evidence-based evaluation of business incubation performance. It suggests that public policy makers should lower their expectations regarding the numbers of new jobs created by business incubation support.

Business Incubation Performance in the Malaysian ICT Sector

This paper presents research on ICT incubation performance in Malaysia detailing contrasting outcomes predicated upon a number of factors modelled in this study including ‘Selection Performance’, ‘Monitoring and Business Assistance Intensity’, ‘Resource Allocation’, and ‘Professional Management Services’. It also aims at addressing the lack of knowledge concerning the underlying components impacting on ICT incubation performance in Malaysia. Building on the theoretical work of researchers in the field such as Hackett & Dilts (2004; 2008) who analysed the literature in chronological order identifying five primary research orientations in incubation (incubator development; incubator configurations; incubatee development; incubator-incubation impacts; and theorising about business incubation); four research propositions were developed for this study. A total of 180 participants were asked to respond to a questionnaire and 118 useable responses were received yielding a response rate of 65.6%. The research results highlight that a ‘one-size-fits-all’ approach is inappropriate. Whilst the four propositions developed for this research were all confirmed, it is telling that highly performed incubator firms were very much in the minority. Interestingly, resources provided became less significant as incubatees became more profitable whilst targeted professional management services increased in significance suggesting that as profitability improves the need for capability development increases.

A Study on Enhancing Managerial Performance of Business Incubators and Developing Differentiation Strategy

A Study on Enhancing Managerial Performance of Business Incubators and Developing Differentiation Strategy

Influence of Business Incubators Performance on Entrepreneurial Intentions and Its Antecedents during the Pre-incubation Stage

AbstractThe pre-incubation phase is critical in the forming of entrepreneur’s intention and however it is almost missing in literature. Using the entrepreneurship models based on the beliefs–attitude–intention relationship, a sample of 167 pre-incubated entrepreneurs within the well-known System of Business Incubators of the Monterrey Institute of Technology and Higher Education was surveyed and its statistical analysis developed with Structural Equation Modelling methodology. Our findings confirm that (1) entrepreneur’s perception concerning the incubator’s performance directly and positively affects the desirability, self-efficacy and the facilitating conditions, (2) the perceived desirability and feasibility in entrepreneurship, as well as the first ones, self-efficacy and facilitating conditions, positively influence the entrepreneurial intentions. Furthermore, contrary to the traditional mind-set that supports risk is a barrier, results suggest that (3) the risk perceived by pre-incubated entrepreneurs positively influences entrepreneurial intentions and the desirability that is attributed to that behaviour. Finally, these results also provide insights for organizational leaders and policymakers into managing business incubators and organising their formative programs. The effectiveness of incubators is clear but it is also important to communicate it properly so that incubated individuals can perceive it.

A Comparative Analysis of the Operating Performance of Business Incubators Based on the Comparative Analysis of the Incubator in Jinzhou New District of Dalian

Business incubators are playing an increasingly prominent role in the regional economy. They foster a culture of innovation and entrepreneurship, facilitate the regional innovation and entrepreneur activities going smoothly, improve the success rate of the innovation business matters and promote the progress and development of the regional economy and society. With objective data and deep research to do the comparative study of regional incubator performance, we can discover the advantages and disadvantages of the incubators, and then put forward some suggestions which are beneficial to improve the operating efficiency of the incubators. This paper, taking Dalian Jinzhou District 6 business incubators as a case, do a comparative study and find the strengths and weaknesses of each incubator, and make recommendations to the incubator which can promote the better development of incubators in the end.

Factors Affecting The Success of Incubators and The Moderating Role of Information and Communication Technologies

Business incubators can help young firms to survive during their first years. They are considered to be an entrepreneurial and economic development instrument that can increase the creativity of new firms including small and mid-sized enterprises and that can support them in the early stage of development which is the most vulnerable stage of their existence. Small and mid-sized enterprises are crucial for enhancing innovation, productivity, competitiveness, social cohesion, and economic development in developed and developing countries. They are also crucial in minimizing unemployment; they create a lot of jobs and significant output in many countries. The economy in many developing countries, especially Arab countries, is in a critical state. The unemployment rate is very high and gross domestic product is very low compared to developed countries. Many types of success models have been proposed and used to measure the success and performance of business incubators in developed countries. However, a limited number of studies and success models have been published on this topic in the case of the developing world. Therefore, the main objective of this paper is to propose a model using a combination of well-known and new success factors for business incubator success in developing countries.

Strategic assets in technology-based incubators in Brazil

PurposeThe purpose of this paper is to analyze the relationship between strategic assets and the launch of new products in technology-based incubators (TBIs) in Brazil.Design/methodology/approachThe authors applied two surveys, one for the universe of TBIs’ managers in the state of Sao Paulo, Brazil, and the other to the incubated firms’ managers/owners. Two statistical techniques were used: correlation analysis and multiple linear regression.FindingsThe main finding of this paper is that TBIs’ strategies focusing on the supply of knowledge assets and the creation of relationship assets are more effective than strategies focused only on the supply of physical infrastructure for firms located in incubators.Research limitations/implicationsBecause the sample of 100 respondents of incubated companies was the result of a non-probabilistic convenience sampling, the outcomes also cannot be generalized.Practical implicationsFor managers of TBIs, there is a challenge to focus on the supply of intangible and high value added assets for incubated firms. For managers/owners of incubated firms, the authors provide an orientation to what they should seek or demand when deciding where to place their business in a TBI. For the government, the results of this research may help to formulate public policies to support and incentivize TBIs. For investors, the results can help to define where to seek the most innovative projects.Social implicationsInnovation and entrepreneurship are understood as sources of wealth creation and social development.Originality/valueThe authors propose in this paper that there is a theoretical gap between traditional theories of innovation and entrepreneurship and the strategic behavior and performance of business incubators and their interconnected stakeholders. Here the authors seek to bridge this gap.