A comprehensive performance measurement framework for business incubation centres: Empirical evidence in an Irish context

Abstract

During the last 20 years, there has been an increased interest among academics and practitioners in the area of business incubation. However, limited attention has been devoted to developing a comprehensive framework that can measure business incubators' performances. Therefore, there is an urgent need for an appropriate, robust and useable performance framework. In this paper, we present a comprehensive framework using a weighted fuzzy inference system for business incubation centres' (BIC) performance measurement. The proposed approach utilises the input of a Delphi panel to identify criteria and subcriteria. Then a fuzzy analytic hierarchy process is used to weigh the criteria. Subsequently, a weighted fuzzy inference system is developed and applied to provide results based on the identified criteria and subcriteria. To show the proficiency and applicability of the proposed framework, a case study of Irish BICs is applied. The comprehensive performance measurement framework presented in this paper provides for accurate evaluation and monitoring across six criteria. The six criteria are facilities and infrastructure; clients; networking and marketing; products and services; finance; and human capital. The results show that although most of the BICs focus on facilities and infrastructure, there is a need to concentrate more on factors such as networking, marketing and finance. The detailed approach presented in this paper can be used by academics and practitioners who wish to apply fuzzy inference systems to performance measurement. In addition, the results from our pilot can be used by BIC managers and policymakers to improve performance.

Business incubation as a community of practice: an emergent cultural web

“…A limited number of studies have explored the context of BICs. This is despite the importance of BICs for a functioning regional innovation ecosystem (Azadnia et al 2022).…”

“…The impact of business incubation on successful business development has received increased attention (Sagath et al, 2019). Variances in incubation models has led to a dominant focus on the facilities, services and activities related to business incubation (Azadnia et al, 2022) and how these differ across different types of incubators. In this research we explored a particular type of business incubation, Business Incubation Centers (BICs) which are regionally based across Ireland.…”

“…BICs are primarily funded by government, they often receive grants for physical infrastructure and an annual budget for staff and events which are focused on achieving key performance indicators as specified by their sponsors (Azadnia et al 2022). Prior research suggests that government support programmes, including BICs, often do not match to the characteristics, needs and/or expectations of entrepreneurs (Ahmad, 2017;Ayaste et al, 2017;McAdam et al, 2021;Mian et al, 2021;Stephens and Lyons, 2022).…”

A stakeholder approach towards a consolidated framework for measuring business incubator efficacy

“…Considering the identified gap this study seeks to address is well known (Hausberg & Korreck 2020:160), there have been an increasing number of attempts to propose comprehensive frameworks for evaluating incubator efficacy. A recent attempt by Azadnia et al (2022Azadnia et al ( :2415 identified a variety of criteria relevant to the Irish incubation ecosystem; however, their approach focused heavily on the performance of the incubators in terms of facilities and infrastructure and by their own admission, identified a need to shift focus towards the efficacy of factors relevant to the incubation activity, such as networks and availability of fundings.…”

Influence of Financial Management Capabilities on Semi-Formal Financial Accessibility among Incubated Small and Medium Entrepreneurs in Tanzania

“…Improved financial management capabilities, often resulting from financial literacy and training initiatives, enable incubated entrepreneurs to navigate the complexities of Tanzania's semi-formal financial systems more effectively (Azadnia et al, 2022). They become more aware of the various semi-formal financing options available to them, understand the associated risks and benefits, and can make informed decisions that optimize their financial accessibility.…”