Business incubation as strategy

Abstract

PurposeThe purpose of this paper is to propose that an unprecedented revolutionary change in the structure of the US economy warrants attention to the internal structures, cultures and strategies. Consequently, it is argued that for businesses, especially large industrial establishments (LIEs), to survive and prosper in the new and emerging economic order, they must aggressively redesign their organizational environments as a business incubator to leverage new and emerging social and economic opportunities in the development and commercialization of new products, new processes, and new business models, among others. These strategic goals and objectives require firms to pursue leverage creativity, innovation, and entrepreneurship as well as embrace and adopt business incubation as strategy.Design/methodology/approachThe paper attempts to make business incubation a strategy not only for new and emerging technology‐driven firms but also for large industrialized corporations. In addition, it argues that, in the new economy, creativity, innovation and entrepreneurship should not be the exclusive routine or practice of only small firms but should also be a part of large corporations if they are to survive and prosper in the new economy.FindingsFuture research may develop testable hypotheses to validate claims and assertions. The last couple of decades have witnessed unprecedented revolutionary change in the structure of the US economy. Whether it is called the “entrepreneurial economy” or the “new economy”, entrepreneurship, innovation and creativity have become the hallmark of economic and business prosperity.Practical implicationsThese concepts should hopefully encourage managers to view their organizations as business incubators on the basis of certain enabling structures, cultures (values, beliefs, norms, etc.) and policies and strategies that may either unleash and leverage creativity, innovation and entrepreneurship or inhibit them. After thinking about their organizations in terms of a business incubator, managers, hopefully, will craft business incubation strategies – programs, activities, and events that will bring a community orientation and collective action to existing product improvements, new product developments and the commercialization agenda via creativity, innovation and entrepreneurship.Originality/valueBusiness incubators have traditionally been recognized as new organizational forms for promoting entrepreneurship and stimulating new business formation. Similarly, business incubation programs, activities, and events have routinely been perceived as being beneficial to entrepreneurs, start‐ups, and small business. It is possible that no one so far has conceptualized and endogenized the firm as a business incubator and business incubation as strategy.

Role of Business Incubators as a Tool for Entrepreneurship Development: The Mediating and Moderating Role of Business Start-Up and Government Regulations

“…Second, most studies in the above literature relate to the performance of incubators in developed countries and very less in developing countries [21]. Eshun [22] has suggested that government efforts should also be incorporated to assess the business incubator's performance.…”

An incubation perspective on social innovation: the London Hub – a social incubator

“…Eshun () and Aernoudt () argue for different types of incubators, as illustrated in Table , while Carayannis and von Zedwitz (, p. 95) present five incubator archetypes: the university incubator, the independent commercial incubator, the regional business incubator, the company‐internal incubator and the virtual incubator. Deriving from the Carayannis and von Zedwitz's () definitions, the fundamental differences between different incubator models/types stem from (1) the purpose of the incubator and (2) the nature of relationships it manages.…”

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

“…Incubators are designed to provide a variety of resources that will increase the odds that a new business will succeed, and in that success, there will be some economic benefits derived from the sponsoring entity [26]. Moreover, a business incubator has been defined as "an environment formally designed to stimulate the growth and development of new and early stage firms by improving their opportunities for the acquisition of resources aimed at facilitating the development and commercialization of new products, new technologies, and new business models" [27]. It is also defined by [25] as a facility founded to create a conducive environment to new ventures to help them to cope with the difficulties that exist in the initial stage of the business life cycle, to help them to survive and grow to become successful mature businesses.…”