The study uses the perspectives of knowledge spillover theory, institutional theory and cluster theory to explore DIHs. According to knowledge spillover theory, companies in the same locality benefit from shared technology and development, leading to increased entrepreneurship (Ács et al. 2009). The dissemination of knowledge among individuals and organisations provides entrepreneurs with valuable insights, technological advancements and effective business strategies, fostering innovation and prompting the creative application of new ideas and technologies. Co-location with selective entry and structured interactions between start-ups in DIHs optimise their proximities (Madaleno et al. 2022).

Institutional theory explains the interrelationships and coordination between stakeholders in DIHs and start-up growth (Dubey et al. 2019). DiMaggio and Powell (1983) in their seminal article argued that organisations are driven more by efficiency needs than competition, resulting in homogeneity. This theory supports the importance of DIHs for start-up growth. Start-ups within a DIH often mimic successful peers, gaining legitimacy (Covin & Miller 2014). This can explain similar collaborative strategies in business incubators and DIHs. Additionally, institutional theory suggests that the desire to become entrepreneurs is shaped by the living context (Dheer 2017).

In economic clusters, cluster theory is used where geographical location gives new companies a competitive advantage because of co-location (Audretsch & Belitski 2017; Spigel & Harrison 2018). This was earlier explained by Spigel (2017) who posited that companies may share economic infrastructure like equipment, buildings and fibre Internet that enables knowledge transfer and sharing. Digital innovation hubs within the institutional dynamics are, therefore, considered to be important in the development of entrepreneurs and the achievement of high entrepreneurial activity (EA).

Cluster theory is used in economic clusters where geographical location gives new companies a competitive advantage due to co-location (Audretsch & Belitski 2017; Spigel & Harrison 2018). Companies may share economic infrastructure such as equipment, buildings and fibre Internet, enabling knowledge transfer and sharing (Spigel 2017). Digital innovation hubs within these institutional dynamics are crucial for developing entrepreneurs and achieving start-up growth. The principles of cluster theory, the presence of other companies, knowledge spillover and knowledge creation are used to develop DIHs, fostering entrepreneurship through knowledge sharing and collaboration (Spigel & Harrison 2018).

There are strong links between cluster, knowledge spillover and institutional theories, as they all focus on shared benefits within an ecosystem. Cluster theory emphasises industrial benefits and co-location, knowledge spillover theory highlights shared technology and development, and institutional theory underscores systemic interaction. Together, these theories illustrate the interconnectedness and location of DIHs and how they support start-up growth.

The study focused on DIH or programme managers and entrepreneurs or start-up founders associated with DIHs. Start-ups included were those involved with a DIH within the last 5 years, aligning with the definition of start-ups as young entrepreneurial companies less than 5 years old (Aldianto et al. 2021). Understanding the perspectives of both support recipients (entrepreneurs or start-up founders) and providers (DIH or programme managers) is crucial for comprehending how DIHs influence start-up growth. Thus, the sample included DIH managers and start-up founders.

The population of DIH or programme managers comprised all managers from the 12 DIHs in Africa under the AEDIBNET programme, with no exclusions. For entrepreneurs or start-up founders, the sample was drawn from those at the Tshimologong Digital Innovation Precinct in South Africa, the sole DIH under the AEDIBNET programme in the country. These entrepreneurs or start-up founders were randomly selected based on their current residence at Tshimologong Precinct or their participation in a support programme such as incubation or acceleration within the last 5 years. This selection was made for convenience and accessibility.

Sampling is crucial in academic research and is part of every kind of empirical research (Haenssgen 2019; Kumar 2019). The study employed purposive sampling, a method characterised by the deliberate selection of participants who share a common purpose or represent a specific thematic focus in the research domain (Cassell 2015; Creswell & Poth 2018; Flick 2019). This sampling strategy aligns with the research objective of obtaining in-depth insights from individuals closely involved with DIH activities, ensuring that the selected sample is both relevant and representative of the population central to the study’s goals.

The deliberate choice of purposive sampling aimed to capture nuanced perspectives and experiences of DIH or programme managers and entrepreneurs or start-up founders directly engaged with DIHs. This method is favoured for its flexibility, allowing for the intentional inclusion of participants with diverse viewpoints, ultimately contributing to a comprehensive understanding of the influence of DIHs on start-up growth. The decision to use purposive sampling considered the study’s specific context, aiming for depth and specificity in participant selection.

The study aimed to capture insights from one representative per DIH and resulted in a sample size of 6 out of the 12 DIHs under consideration, achieving a 50% participation rate. The response rate was influenced by some DIH or programme managers citing the ongoing establishment of their hubs and the absence of operational activities as reasons for non-participation. Additionally, the study included a second sample of entrepreneurs or start-up founders who had participated in business incubation or acceleration at Tshimologong DIH in Johannesburg over the past 5 years. Out of a targeted sample of 79 entrepreneurs or start-up founders, 28 participated, resulting in a 35% participation rate. Challenges in the outreach process included 11 bounced emails and a subset of non-responsive potential participants, possibly due to the start-ups no longer existing or other undisclosed reasons. These challenges reflect the dynamic nature of the start-up landscape and the varying circumstances influencing research engagement. Despite these obstacles, the study obtained valuable insights from a significant portion of the intended sample, contributing important perspectives to the exploration of DIHs and their influence on start-up growth.

The primary research instrument for this study was semi-structured interviews, which allowed for an in-depth exploration of the research questions and provided flexibility to delve deeper into specific areas of interest as they emerged. The semi-structured interview guide included questions designed to gather detailed information about the key functions of DIHs, their interactions and their impact on start-up growth. Structured around the main research objectives, the guide had sections dedicated to exploring the roles and functions of DIHs, the interaction of these functions and their influence on start-up growth. Open-ended questions were used to encourage participants to share their experiences and perspectives in their own words, providing a comprehensive understanding of the subject matter (Sassanelli et al. 2021).

Data collected from the semi-structured interviews were analysed using thematic analysis. This method involved identifying, analysing and reporting patterns (themes) within the data. The process began with transcribing the interview recordings verbatim, followed by a thorough reading of the transcripts to become familiar with the data (Asplund et al. 2021). Coding was then performed to organise the data into meaningful groups. Initial codes were generated based on the research questions and objectives, and these codes were iteratively refined and categorised into broader themes. The thematic analysis allowed for the identification of key themes that capture the essence of participants’ experiences and perspectives regarding the influence of DIHs on start-up growth (Georgescu et al. 2021).

The final step involved interpreting the themes in the context of the research questions and objectives. This interpretation sought to provide a nuanced understanding of the multifaceted roles of DIHs and their impact on start-ups, offering valuable insights for policymakers, practitioners and researchers interested in fostering entrepreneurial ecosystems in developing regions.

In qualitative research, trustworthiness is crucial for evaluating credibility, transferability, dependability and confirmability, ensuring that findings reflect participants’ experiences and perspectives with a transparent and rigorous research process. Credibility was established through triangulation, collecting data from multiple sources such as DIH or programme managers and entrepreneurs or start-up founders, and conducting member checking to ensure an accurate representation of their experiences (Shenton 2004). Transferability was addressed by describing the research context and start-ups, enabling readers to determine the applicability of findings to other settings, and using a purposive sampling strategy to select participants with rich, relevant experiences. Dependability involves maintaining data stability over time and conditions through an audit trail documenting the research process from data collection to analysis, ensuring transparency and replicability (Lincoln & Guba 1985), and using semi-structured interviews for a systematic approach to data collection (Patton 2002). Confirmability was ensured through reflexivity, where the researcher reflected on biases and their impact on the research (Lincoln & Guba 1985), supported by an audit trail and peer debriefing, with the study supervisor reviewing the research process and findings to check interpretations and conclusions (Shenton 2004).

Ethical clearance to conduct this study was obtained from the Research Ethics Committee at the University of Pretoria (reference no.: EMS236/22). The researcher ensured that ethical standards were maintained throughout all stages of the research; before, during and after data collection as emphasised by Wa-Mbaleka (2019), who asserts that ethical considerations extend beyond data collection.

Theme one, supporting start-up growth and success, emerged, relating to the main research objective of investigating the influence of the DIHs on the EA of start-ups. This theme addresses the main research question: ‘What is the influence of DIHs on the EA of start-ups?’ It highlights the crucial role and influence that DIHs have on nurturing start-up growth and success. This theme captures how DIHs accelerate the development of start-ups by providing essential resources, mentoring and support that enhance their viability and operational capabilities. Digital innovation hubs facilitate the transition from ideation to market-ready products, contributing to the overall growth and sustainability of start-ups. Digital innovation hubs offer a structured environment with access to critical infrastructure, funding opportunities and expert guidance, which helps start-ups navigate early-stage development challenges, accelerate growth and improve long-term success prospects.

As one DIH manager noted:

Similarly, an entrepreneur commented, ‘The DIH provided us with the infrastructure and connections that were crucial for our initial growth phase’ (E2, Male, Doctoral Degree). Another entrepreneur added, ‘Without the mentorship and funding access from the DIH, we wouldn’t have been able to sustain our early operations’ (E3, Male, National Diploma).

Both DIH managers and entrepreneurs or start-up founders recognise the critical role DIHs play in supporting start-up growth and success. Digital innovation hubs provide a crucial platform that aids in resource allocation, expert access and strategic planning, which collectively fast-track the commercialisation process and enhance the start-ups’ market presence. This synergy between the DIH’s offerings and start-up needs creates a conducive environment for sustained growth and competitive advantage.

The second theme, holistic development support by DIHs, emerged, relating to the secondary research objective of exploring the main functions of DIHs. This theme addresses the secondary research question one: ‘What main functions of DIHs influence the EA of start-ups?’. This theme captures how DIHs serve as comprehensive support platforms that nurture start-up growth through multifaceted assistance. These services are essential for developing market-ready products, creating financially sustainable models, and appealing to investors and customers. It identified several key functions of DIHs that significantly impact start-up growth. These include the ‘test before invest’ function, which allows start-ups to refine their technologies and business models efficiently before scaling up operations (Asplund et al. 2021).

Additionally, DIHs provide skills and training, funding support, and foster ecosystem and networking opportunities. These functions collectively enhance the practical and market viability of start-ups by ensuring they focus on developing market-ready products, financially sustainable models and viable offerings that appeal to investors and customers (Kalpaka et al. 2020). A DIH manager highlighted, ‘The focus on the viability of start-ups is extremely important because viability determines how far the start-up can go or which direction the start-up can take?’ (M1, Male, Bachelors Degree). Another added, ‘Digital innovation hubs facilitate prototyping which is crucial for start-ups to test their innovations in real market conditions’ (M3, Male, Bachelors Degree). An entrepreneur also emphasised, ‘Each function of the DIH contributes uniquely but it’s their combination that has truly transformed our business’ (E10, Male, Bachelors Degree). Another entrepreneur stated, ‘The training sessions provided by the DIH have been invaluable in helping us develop the skills necessary to navigate the competitive market’ (E4, Male, Masters Degree).

Both DIH managers and entrepreneurs or start-up founders highlight the importance of the fundamental functions provided by DIHs, including critical infrastructural support and essential services that facilitate rapid growth and integration into the broader business ecosystem. Networking emerges as a key function, where DIHs act as catalysts for creating valuable connections that can lead to investment opportunities and market expansion. These functions are integral in transforming nascent ventures into robust businesses capable of navigating complex markets.

The last theme, integrated ecosystem enhancement by DIHs, emerged, relating to the secondary research objective of investigating the interaction of the main functions of DIHs and their influence on start-up growth. This theme addresses the secondary research question two: ‘How do the functions of DIHs interact and influence the growth of start-ups?’. This theme examines how DIHs create a synergistic environment that promotes start-up growth by integrating various support functions such as mentorship, funding access, and technical support and how the interconnected nature of these functions enhances start-up growth. By integrating various functions such as mentorship, funding access and technical support, DIHs ensure start-ups receive comprehensive support tailored to their needs, facilitating faster growth and development.

This synergy promotes innovation and resilience within the entrepreneurial ecosystem, enabling start-ups to achieve sustainable growth. One DIH manager commented, ‘Digital innovation hubs improve entrepreneurial activity by providing a one-stop shop that promotes sector-agnostic innovation’ (M2, Male, Masters Degree). An entrepreneur reflected, ‘The synergy between networking, funding, and mentoring has propelled our start-up to new heights’ (E15, Male, Honours Degree). Another entrepreneur noted, ‘The combined support functions of the DIH have created a robust foundation for our growth, making it easier to tackle challenges as they arise’ (E5, Male, Bachelors Degree).

Both perspectives from the DIH managers and entrepreneurs or start-up founders emphasise the interconnected nature of DIH functions, ranging from networking, funding and infrastructure, to mentoring and how these collectively enhance the growth of start-ups and their development. This integration fosters a holistic support system that not only addresses immediate needs but also prepares start-ups for future challenges. Through these combined efforts, DIHs ensure that start-ups not only survive but thrive in competitive environments.

These themes illustrate the multifaceted roles of DIHs in supporting start-ups and underscore their critical position within start-up growth. By providing structured and strategic support, DIHs enable start-ups to navigate complex challenges, leverage new opportunities, and ultimately contribute to dynamic and sustainable economic growth in Africa.