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1 – 10 of over 2000Abstract
Purpose
This paper attempts to use agglomeration theory and ecological theory to explore how geographic agglomeration affects the graduation performance of incubator community. The authors argue that increasing the incubator community density can improve the opportunities for mutualism and learning among incubators. However, as the competition intensifies, the above positive relationship will weaken when the incubator density exceeds a certain level.
Design/methodology/approach
The authors use a unique panel dataset of 438 National Technology Business Incubators (NTBIs) in China spanning from 2008 to 2012. Since each NTBIs contains multiple observations for different years, these observations that belong to a cross-section are not completely independent of each other; therefore, the regression using ordinary least squares method underestimates the standard deviations of the variables. To solve this problem, the authors regress this cluster panel data using the Newey–West robust variance estimator.
Findings
The empirical results show that incubator community density is conducive to promoting incubation performance, while the positive relationship between the incubator community density and incubation performance gradually weakens as the population density of incubators surpasses a certain level. Further, the authors examine how incubator assistance (technical assistance and business assistance) moderates the relationship between incubator density and incubation performance. The results indicate that this positive relationship is stronger when more business assistance is provided by incubator managers, while the moderating role of technical assistance is not supported.
Originality/value
This paper enriches the research on the relationship between incubator community density and graduation performance from the perspective of incubator assistance which helps start-ups to understand, absorb and transform external knowledge and resources, thereby promoting their growth.
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Nicholas Theodorakopoulos, Nada K. Kakabadse and Carmel McGowan
The purpose of this paper is twofold: first, to provide a critical assessment of the literature on business incubation effectiveness and second, to submit a situated theoretical…
Abstract
Purpose
The purpose of this paper is twofold: first, to provide a critical assessment of the literature on business incubation effectiveness and second, to submit a situated theoretical perspective on how business incubation management can provide an environment that supports the development of incubatee entrepreneurs and their businesses.
Design/methodology/approach
The paper provides a narrative critical assessment of the literature on business incubation effectiveness. Definitional issues, performance aspects and approaches to establishing critical success factors in business incubation are discussed. Business incubation management is identified as an overarching factor for theorising on business incubation effectiveness.
Findings
The literature on business incubation effectiveness suffers from several deficiencies, including definitional incongruence, descriptive accounts, fragmentation and lack of strong conceptual grounding. Notwithstanding the growth of research on this domain, understanding of how entrepreneurs and their businesses develop within the business incubator environment remains limited. Given the importance of relational, intangible factors in business incubation and the critical role of business incubation management in orchestrating and optimising such factors, it is suggested that theorising efforts would benefit from a situated perspective.
Originality/value
The identification of specific shortcomings in the literature on business incubation highlights the need for more systematic efforts towards theory building. It is suggested that focusing on the role of business incubation management from a situated learning theory perspective can lend itself to a more profound understanding of the development process of incubatee entrepreneurs and their firms. Theoretical propositions are offered to this effect, as well as avenues for future research.
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Maria Cristina Longo, Calogero Guccio and Marco Ferdinando Martorana
This paper aims to assess whether incubation affects the technical efficiency of innovative firms after entering the market. The study of efficiency allows firms to understand how…
Abstract
Purpose
This paper aims to assess whether incubation affects the technical efficiency of innovative firms after entering the market. The study of efficiency allows firms to understand how well resources have been used in production processes. The research intends to contribute to the literature on the performance of incubated firms.
Design/methodology/approach
This study estimates the relative efficiency of innovative firms adopting a DEA-based two-stage semi-parametric method. Incubation, firm age and initial capital are used for explaining the relative performance of previously incubated firms compared to non-incubated ones over a six-year period of activity. This research focuses on Italian innovative firms using a large sample of companies.
Findings
Results show that incubators have a positive and significant effect on efficiency for firms that have been in the market for more than two years. Efficiency also improves with age and with the level of initial capital of the firm.
Research limitations/implications
This analysis is limited to the quantitative dimension of inputs as reported in the balance sheets, without qualitative considerations.
Practical implications
Findings enhance firms' understanding of the role of incubators as neutral places to develop a business culture of efficiency. From an empirical standpoint, this study provides useful insights to start-uppers who intend to attend incubation programs. Overall, incubators matter to the extent that they enable new firms, net of those that fail to survive in the first two years of activity, to improve their efficiency in the use of inputs. This research also suggests incubators consider the start-ups’ potential of being efficient.
Social implications
Findings provide tips to policymakers when they are called upon to propose funding programs to support prominent firms entering the business scalability.
Originality/value
This study contributes to the literature on the relative performance of post-incubated firms, highlighting the efficiency frontier analysis. This methodological approach is relatively new in this field. It allows researchers to study the innovative firms' performance in relative terms, that is with respect to the input level. It integrates the performance-based with efficiency frontier analysis. Also, this study reinforces the idea that incubators prepare start-ups to develop capacities and managerial skills, which will be useful in post-incubation life to improve their cost competitiveness.
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Ondřej Dvouletý, Maria Cristina Longo, Ivana Blažková, Martin Lukeš and Michal Andera
Even in established economies, empirical studies on the relationship between business incubation and firm performance do not show unequivocally positive results. The purpose of…
Abstract
Purpose
Even in established economies, empirical studies on the relationship between business incubation and firm performance do not show unequivocally positive results. The purpose of this paper is to contribute to this debate based on the empirical evidence from the under-researched Central and Eastern European region in which no similar study has been conducted before. Due to the shorter experience with the management of business incubators and less developed institutions, business incubators may not be so effective in supporting their tenants in this region.
Design/methodology/approach
The authors utilise firm-level data from incubated Czech enterprises (n=205) founded after 2003 and compare them with those that have not received support from incubators. The authors implement three matching techniques to pair incubated and non-incubated companies. The outcome variables measured sales, price-cost margin, assets turnover, value added, size of total assets and size of personnel costs.
Findings
Compared to the control group, incubated firms reported on average lower values of the above-mentioned indicators. Presented study shows that Czech incubators have not been successful in supporting growth of incubated firms.
Practical implications
The study suggests that there is a clear room for improvements. Incubators should improve in attracting and selecting high potentials and in providing more effective support focussed on tenants’ growth, whereas policymakers should exercise stricter control regarding the money spent and effectiveness of incubators.
Originality/value
The empirical analysis was conducted based on the research gap in the studies related to the impact of business incubation in the under-researched Central and Eastern European region. It also shows that positive results from similar studies done in established economies cannot be taken for granted as they depend on the quality of institutions in a particular country.
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Srinivasa A. Rao, Waheed Kareem Abdul, Raavee Kadam and Abhilasha Singh
The study investigates the impact of various factors that affect the business performance of micro-level women entrepreneurs in the UAE and India.
Abstract
Purpose
The study investigates the impact of various factors that affect the business performance of micro-level women entrepreneurs in the UAE and India.
Design/methodology/approach
A conceptual model including the factors that impact the performance of micro-level women entrepreneurs is proposed. The proposed model was validated with data collected through a structured questionnaire based on a cross-sectional survey conducted in the UAE and India. The collected data was analyzed using the structural equations modeling approach.
Findings
Findings revealed that factors such as competitive aggressiveness, incubation, innovativeness, market orientation and risk-taking propensity have a positive impact on business performance and growth in both countries. Factors like training, learning and finance orientation did not affect business performance.
Originality/value
Gender plays an essential and influential role in developing countries with regard to entrepreneurship. This research attempts to uncover the often-neglected area of women entrepreneurship.
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Following recommendations by scholars for further research on the business incubation process, the purpose of this paper is to build new theory on incubation using the social…
Abstract
Purpose
Following recommendations by scholars for further research on the business incubation process, the purpose of this paper is to build new theory on incubation using the social mechanisms approach – a well-developed body of theory on social processes.
Design/methodology/approach
A critical review of dominant theoretical approaches in the area highlighted that researchers in the past have not studied incubation as a social “process.” In order to study a social process such as incubation, a case is made for the value of social mechanisms theory. In order to study incubation as a social mechanism, an inductive-qualitative research design based on ethnography was used. Data were collected over six months each at two Dublin-Ireland-based business incubators.
Findings
Results highlight the significant role of a positive relational bond between the incubator manager and client entrepreneurs. Incubation is triggered in a sophisticated normative environment under the prevalence of ground rules, subtle signals and the interplay of personal histories. These contribute to the incubation mechanism's non-linearity, thereby, making the prediction of outcomes difficult.
Originality/value
A contribution of this research comes in the form of a new conceptualization of incubation based in mechanisms reasoning. The mechanisms approach was found to be versatile and helped in extending the work of previous researchers who proposed advancements in the area based on dyadic theory, social capital theory and social network theory. Further, a new, and it is argued, more fruitful direction for incubation process-related research is also highlighted; one which takes on board the often glossed over idiosyncrasies of incubation as a social mechanism for promoting early stage entrepreneurship.
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Simon Stephens and Roisin M. Lyons
This paper presents a conceptual framework based on a literature review and the findings from an empirical study using data collected from entrepreneurs (business incubatees) over…
Abstract
Purpose
This paper presents a conceptual framework based on a literature review and the findings from an empirical study using data collected from entrepreneurs (business incubatees) over a 15-year period (2004–2019). This paper aim is to discuss and propose areas to consider when (re)designing business incubation.
Design/methodology/approach
The data set is based on the experiences of five different cohorts (n = 100), each of which spent 18–24 months participating in a start-up programme sponsored by a business incubation centre (BIC) located in Ireland. To add further depth and nuance to this paper’s findings, an expert focus group was undertaken.
Findings
The findings highlight the importance of different activities and skills in a BIC over time and recommend the inclusion of a number of activities in a BIC framework. The activities include continued professional development (CPD), action research, participation in a simulation, development of emotional intelligence, leadership skills and mindset and critical reflection.
Practical implications
This paper presents an appropriate conceptual framework for the (re)design of business incubation. The framework facilitates an improved understanding of the evolution of entrepreneurial activities and outcomes associated with engagement with a BIC.
Originality/value
BIC 4.0, as described in this paper, proposes success as multi-faceted and including space, facilities, networks, mentors, professional development, reflective practice, emotional development and engagement with continuous professional development.
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Francesco Calza, Luca Dezi, Francesco Schiavone and Michele Simoni
– The purpose of this paper is to propose a conceptual framework to analyze the intellectual capital (IC) of new generation business incubators.
Abstract
Purpose
The purpose of this paper is to propose a conceptual framework to analyze the intellectual capital (IC) of new generation business incubators.
Design/methodology/approach
The paper carries out a literature-based analysis of the different components of the IC of business incubators and develops a conceptual framework that links the business incubators’ IC to the IC of incubated firms.
Findings
The paper provides an analytical model able to support practitioners and scholars to better understand and evaluate the IC criticalities and requirements of incubators. The notion of incubation path is developed.
Originality/value
The paper contributes to the extant literature about the intangible assets of business incubators by analyzing in detail how these structures use their IC to perform their activities.
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Tahereh Hasani and Norman O'Reilly
The purpose of this paper is to depict the effects and relative importance of technological, organizational, environmental and managerial factors on the organizational performance…
Abstract
Purpose
The purpose of this paper is to depict the effects and relative importance of technological, organizational, environmental and managerial factors on the organizational performance of start-up businesses.
Design/methodology/approach
This research’s primary data was collected from 389 start-up companies in Malaysia. Principle component analysis and the orthogonal model with Varimax rotation method are used to perform exploratory factor analysis test. Structural equation modelling is also used in confirmatory factor analysis to explore the relationships between independent and dependent variables.
Findings
The findings suggest positive effects of technological and environmental characteristics on the organizational performance of start-up businesses. The managerial characteristics do not have any positive effect on the organizational performance of start-up businesses. The organizational characteristics split into two parts: the availability of internal financial resources, which positively affects the organizational performance of start-up businesses; and the availability of business incubation, which does not have any important effect. Moreover, start-up companies should choose the one with the highest perceived advantage as it would have the most significant positive effect on their organizational performance. In addition, it was detected that venture capitalists’ (VCs) support has the most positive influence on organizational performance and social customer relationship management adoption even more than governmental supports in the context of Malaysia.
Originality/value
The proposed framework of this research can be used not only as a research tool for examining determinant factors affecting organizational performance of start-up businesses but also by governments, VCs and other investors to detect best-performing start-up businesses.
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Bob Ssekiziyivu, Rogers Mwesigwa, Eunice Kabahinda, Sharon Lakareber and Florence Nakajubi
The purpose of this paper is to provide the initial evidence on the role of business incubation (BI) in supporting startups and BI practices from developing communities in Uganda.
Abstract
Purpose
The purpose of this paper is to provide the initial evidence on the role of business incubation (BI) in supporting startups and BI practices from developing communities in Uganda.
Design/methodology/approach
This study is cross-sectional and a triangulation of quantitative and qualitative data were used. Data were collected by means of a questionnaire and an interview guide from 28 incubators.
Findings
Results indicate that business incubators play different roles in communities such as business assistance, networking, provision of necessary infrastructure and provision of an enabling environment. Furthermore, BI practices were identified such as networking, human resource, tenant management and assessment practices.
Research limitations/implications
This study was cross-sectional and thus monitoring changes in behavior of incubatees overtime was not possible. The study was conducted in Uganda, and it is possible that the results of this study can be generalized to developing communities with environments similar to that of Uganda.
Practical implications
The results are important for business incubators in improving the sustainability of startups in Uganda. The study will enable business incubators to understand their role and incubator practices in as far as supporting small and medium-sized enterprises is concerned.
Originality/value
While there have been a number of studies on BI, this study provides an initial empirical evidence on the role of BI and BI practices using evidence from developing communities in Uganda.
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