Critical incubator dimensions for small firm performance – a study of new technology-based firms localised in 16 incubators
by Hans Lofsten
International Journal of Business Innovation and Research (IJBIR), Vol. 4, No. 3, 2010

Abstract: The research proposition in this study relates specifically to the potential for performance associated with cooperation with different actors. The developed analytical model will examine the effects of several different dimensions on small firm performance (sales and employment): background variables (region, branch, etc., four variables), localisation/proximity (11 variables), external networks (14 variables), financing (15 variables) and internal networks – business support (14 variables). This study builds upon data collected from a survey in 2005 of 16 incubators in Sweden. The survey was sent out to the managers of the new technology-based firms (incubatees). Out of the 133 answers (response rate 69%) we were able to use 131 small new technology-based firms localised in 16 incubators in our statistical analysis. From a firms perspective the incubator provides an opportunity of gaining access together with the creation of network links (internal and external) that are important for its daily business activities and performance. However, we found very limited connections between firm performance and internal and external networks. We can also see, regarding the financing situation, that the only statistical connections are between firm performance (both sales and employment) and bank loans (debts). There was very little support overall for the connections between firm performance and the variables.

Online publication date: Fri, 02-Apr-2010

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