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.