New venture idea incubation: A micro-process view

Abstract

Background: In pursuit of new venture idea incubation, motivated entrepreneurs must simultaneously commit to an idea and develop the capacity to translate this commitment into a new venture concept. However, it is not clear how experienced entrepreneurs navigate this complex process. In this study, key phases and competencies emerge from a deep understanding of the lived experience of entrepreneurs engaged in the opportunity development process.

Aim: By leaning on empirical insight from seasoned entrepreneurs, this study examines the iterative character of new venture idea incubation. The research conceptualises the lived experience of key constructs and relationships in the new venture idea incubation process.

Setting: The primary research was conducted in Johannesburg in South Africa.

Methods: Longitudinal, triangulated data from purposively selected cases enabled patterning of idea incubation processes. Computer-aided data analysis (CAQDAS) was used to code inductively and deductively to illuminate activations and sequences.

Results: This incubation period was shown to be one in which venture ideas evolve into elementary venture concepts. The data enabled development of a framework that exemplifies this process of incubation.

Conclusion: The findings extend the existing theory by describing the micro-processes that are involved in new venture idea incubation. The findings also clarify the distinction between new venture idea incubation and new venture opportunity evaluation, a distinction that has not previously been evident.

Contribution: The study contributes by exposing a micro-level view of the new venture idea incubation process that is enacted by entrepreneurs to frame an elementary venture concept.