Title: Business incubator affiliation: impact on incubator funding and services

Authors: Aruna Chandra; Chia-An Chao; John K. Ryans, Jr.

Addresses: Management, Information Systems and Business Education Department, Scott College of Business, Indiana State University, 800 Sycamore Street, Terre Haute, IN 47809, USA. ' Management, Information Systems and Business Education Department, Scott College of Business, Indiana State University, 800 Sycamore Street, Terre Haute, IN 47809, USA. ' Department of Marketing, College of Business Administration, Kent State University, Kent, Ohio 44242, USA

Abstract: In this study, incubator affiliations (defined as an incubator|s propensity to network or affiliate with different types of external entities) of 84 business incubators in the USA and its relationship with incubator funding sources and nature of services provided were studied. Four types of affiliation-based relationships were identified: totally unaffiliated, affiliated with other incubator(s), affiliated with university, and affiliated with other incubator(s) and university. Results indicated that the incubator|s affiliation influenced its ability to access funding and provide financial assistance to incubatees, as well as the nature and level of tangible/administrative and value-added services provided to incubatee firms. Based on these findings, two distinct groups of incubators were identified, each with distinctly different strategic foci, service emphasis and funding approaches. Strategy and managerial implications for both categories of incubators are discussed.

Keywords: business incubators; BIs; networking; external affiliation; funding sources; strategic focus; incubator services; incubator funding; incubator affiliations; USA; United States; university affiliations; financial assistance; value-added services.

DOI: 10.1504/IJIRD.2011.043461

International Journal of Innovation and Regional Development, 2011 Vol.3 No.6, pp.551 - 572

Available online: 01 Nov 2011 *

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