Original Research

Integrating ecosystems: The synergistic effects of digital innovation hubs on start-up growth

Edwell Gumbo, Menisha Moos
The Southern African Journal of Entrepreneurship and Small Business Management | Vol 16, No 1 | a945 | DOI: https://doi.org/10.4102/sajesbm.v16i1.945 | © 2024 Edwell Gumbo, Menisha Moos | This work is licensed under CC Attribution 4.0
Submitted: 10 July 2024 | Published: 25 September 2024

About the author(s)

Edwell Gumbo, Department of Business Management, Faculty of Economic and Management Sciences, University of Pretoria, Pretoria, South Africa
Menisha Moos, Department of Business Management, Faculty of Economic and Management Sciences, University of Pretoria, Pretoria, South Africa

Abstract

Background: South Africa faces significant socio-economic challenges, with unemployment rate. This highlights the need for economic strategies to generate employment, and start-ups are crucial in this context, as they foster innovation, create jobs and increase competitiveness.

Aim: The study aims to investigate how digital innovation hubs (DIHs) influence start-up growth, focusing on their roles and functions.

Setting: The research is set within the context of DIHs in Africa, specifically examining the 12 DIHs established under the AEDIBNET programme.

Methods: A qualitative methodology was employed, using semi-structured interviews with six DIH managers and 28 entrepreneurs or start-up founders.

Results: Supporting start-up growth, holistic development support and integrated ecosystem enhancement by DIHs emerged as key themes. These factors foster a conducive environment for innovation and sustained growth.

Conclusion: Digital innovation hubs play a crucial role in supporting start-up growth by providing comprehensive and integrated support systems. Their functions collectively enhance start-up growth.

Contribution: This study fills a critical gap in the existing literature on DIHs, offering empirical insights into their impact on start-up growth within the African context. The findings provide valuable implications for policymakers, practitioners and researchers aiming to foster the growth of start-ups. Additionally, the study integrates and expands upon knowledge spillover theory, institutional theory and cluster theory. It demonstrates how DIHs facilitate knowledge sharing, provide formal support structures, foster informal networks, and create and sustain entrepreneurial clusters.


Keywords

digital innovation hub; DIH ecosystem; synergistic effects; start-ups; institutional theory; cluster theory; knowledge spillover theory; qualitative study

JEL Codes

L26: Entrepreneurship; M13: New Firms • Startups; O32: Management of Technological Innovation and R&D

Sustainable Development Goal

Goal 8: Decent work and economic growth

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