A stakeholder approach towards a consolidated framework for measuring business incubator efficacy

Abstract

Background: Business incubators (BIs) are considered enablers of the entrepreneurial ecosystem, however there remains a lack of consensus as to whether incubators are effective or even as to how incubator efficacy should be measured.

Aim: This study seeks to develop a consolidated framework for measuring the efficacy of BIs using stakeholder theory as its theoretical basis. This study set out to answer the following research questions:

• What is the relevance of stakeholder theory to incubator efficacy measurement?
• What stakeholder groups are relevant to BIs in South Africa?
• What relationships between stakeholder groups and perspectives on BI efficacy exist that would underpin a framework for measuring incubator efficacy?

Setting: Empirical research was conducted with BIs operating within South Africa, with various incubator types, contexts and industry focus included in the study.

Methods: A sample of nine incubator managers were interviewed as part of this exploratory qualitative study, demonstrating the breadth of the incubator industry in South Africa.

Results: A framework comprising two distinct but related perspectives on incubator efficacy is proposed. Further to this, two additional concepts – incubator-stakeholder conflict and restrictive incubator context – were identified.

Conclusion: This study proposes a consolidated framework for measuring the efficacy of BIs, considering a variety of stakeholder perspectives, and may inform policymakers regarding business incubation in the future.

Contribution: This study identifies and defines incubator-stakeholder conflict as a concept, making a theoretical contribution to the field. Additionally, the study proposes a comprehensive stakeholder-based framework proposed for measuring incubator efficacy.