Internal and external networks, and incubatees’ performance in dynamic environments: entrepreneurial learning’s mediating effect

Abstract

Business incubators (BIs) have gradually evolved to focus increasingly on the development of networks and network functions. However, existing literature indicates that much ambiguity remains regarding the importance and role of cooperation within the incubator networks. In particular, few studies divide incubator networks into internal and external networks to explore how these networks influence the enterprise growth performance (EGP). Based on the social network and organizational learning theories, we analyze the role of entrepreneurial learning (exploratory and exploitative) in the relationship between internal and external networks and EGP in dynamic environments. Through a multiple regression analysis of survey data from 205 incubatees in 14 Chinese business incubators, we find that the BIs' internal and external networks positively impact EGP and exploratory and exploitative learning mediate the relationship between them. Moreover, when incubatees are in a highly dynamic environment, internal networks more positively affect exploitative learning, while external networks inhibit exploratory learning. Finally, we discuss the study's implications.

Interorganizational learning between knowledge-based entrepreneurial ventures responding to COVID-19

“…Entrepreneurs' IOL practices can develop over time based on the changing needs of their ventures (Peltier and Naidu, 2012), and a few studies have also pointed to the formal structures that facilitate entrepreneurial ventures' IOL: Leung et al (2019) studied industry peer networks as a specific way of facilitating entrepreneurial ventures' learning from others, illustrating how IOL occurs by combining cooperation and competition between firms in industry peer networks. Fang et al (2010) and Wu et al (2020) studied IOL facilitated by business incubators and how arrangements in business incubators support IOL internally between tenants, as well as with external actors.…”

“…Research has shown how entrepreneurs leverage interactions in social networks as sources of important resources and knowledge to respond to crises (Kwong et al, 2019;Muñoz et al, 2019), in addition to knowledge already acquired through the venture's experiences (Smallbone et al, 2012). Wu et al (2020) found that the effect of social networks in business incubators was stronger in situations of dynamism and uncertainty, both of which a crisis represents. Hence, crises can perhaps motivate, or even force, organizations to choose to open up and be receptive to learning from and with other organizations (Peronard and Brix, 2019); this leads to the first hypothesis:…”

“…The different types of social relationships and degrees of social embeddedness may have different roles for the activities, interactions, and learning processes of entrepreneurial ventures. Interpersonal and less formal relations between ventures in knowledge-intensive industries have been shown to facilitate IOL (Pina-Stranger and Lazega, 2011), while social embeddedness and networks can also be facilitated through organized mechanisms, such as taking part in business incubators (Fang et al, 2010;Wu et al, 2020) or industry networks (Leung et al, 2019). Because social networks may have a role in how entrepreneurial ventures develop effective strategies and tactics (Peltier and Naidu, 2012), it is relevant to account for how participation in different types of social networks can influence the relationship between crisis-induced adversity, active responses, and IOL.…”

“…Here, IOL enables the transfer and cocreation of strategies to survive a crisis. Thus, responding to the COVID-19 pandemic is a highly important and interesting context in which to study this topic, leading to the following research question: How may responding to the adversity induced by the The present paper builds on previous research on IOL related to entrepreneurial ventures through networks and interactions (Bruneel et al, 2010;Leung et al, 2019;Peltier and Naidu, 2012), for example, as part of business incubators (Fang et al, 2010;Wu et al, 2020). The current paper also relates to entrepreneurial learning (Nogueira, 2019) and previous research on entrepreneurship in crises; it focuses on knowledge-based entrepreneurial ventures as a particularly important type of entrepreneurship, representing the sources of innovation, economic development, and employment (Hayter, 2013).…”

Exploring Factors Link to Teachers’ Competencies in Entrepreneurship Education

“…Fayolle et al (2019) showed that the effects differ depending on trainees' personal characteristics and training strategies, which can have varied impacts on learning processes and results. Entrepreneurship learning is conducive to improving students' willingness to start a business and enterprise growth performance (Liu et al, 2019;Wu W. et al, 2020). The development of EE cannot be separated from the development of entrepreneurial teachers.…”