Skip to main content

Advertisement

SpringerLink
Log in

Internal and external networks, and incubatees’ performance in dynamic environments: entrepreneurial learning’s mediating effect

  • Published:
The Journal of Technology Transfer Aims and scope Submit manuscript

Abstract

Business incubators (BIs) have gradually evolved to focus increasingly on the development of networks and network functions. However, existing literature indicates that much ambiguity remains regarding the importance and role of cooperation within the incubator networks. In particular, few studies divide incubator networks into internal and external networks to explore how these networks influence the enterprise growth performance (EGP). Based on the social network and organizational learning theories, we analyze the role of entrepreneurial learning (exploratory and exploitative) in the relationship between internal and external networks and EGP in dynamic environments. Through a multiple regression analysis of survey data from 205 incubatees in 14 Chinese business incubators, we find that the BIs’ internal and external networks positively impact EGP and exploratory and exploitative learning mediate the relationship between them. Moreover, when incubatees are in a highly dynamic environment, internal networks more positively affect exploitative learning, while external networks inhibit exploratory learning. Finally, we discuss the study’s implications.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3

Similar content being viewed by others

Notes

  1. Incubator size is measured by the number of incubatees within the incubator.

References

  • Aldrich, H. E., & Yang, T. (2014). How do entrepreneurs know what to do? Learning and organizing in new ventures. Journal of Evolutionary Economics, 24(1), 59–82.

    Google Scholar 

  • Andrews, D. W. K., & Stock, J. H. (2005). Identification and inference for econometric models: Essays in honor of Thomas Rothenberg. Cambridge: Cambridge University Press.

    Google Scholar 

  • Atuahene-Gima, K. (2003). The effects of centrifugal and centripetal forces on product development speed and quality: How does problem solving matter? Academy of Management Journal, 46(3), 359–373.

    Google Scholar 

  • Atuahene-Gima, K., & Murray, J. Y. (2007). Exploratory and exploitative learning in new product development: A social capital perspective on new technology ventures in China. Journal of International Marketing, 15(2), 1–29.

    Google Scholar 

  • Barajas, A., & Huergo, E. (2010). International R&D cooperation within the EU framework programme: Empirical evidence for Spanish firms. Economics of Innovation and New Technology, 19(1), 87–111.

    Google Scholar 

  • Bøllingtoft, A. (2012). The bottom-up business incubator: Leverage to networking and cooperation practices in a self-generated, entrepreneurial-enabled environment. Technovation, 32(5), 304–315.

    Google Scholar 

  • Bøllingtoft, A., & Ulhøi, J. P. (2005). The networked business incubator - Leveraging entrepreneurial agency? Journal of Business Venturing, 20(2), 265–290.

    Google Scholar 

  • Castro, I., Galán, J. L., & Bravo, S. (2014). Entrepreneurship and social capital: Evidence from a colombian business incubator. Innovar, 24(9), 91–100.

    Google Scholar 

  • Charalabidis, Y., Androutsopoulou, A., & Diamantopoulou, V. (2018). Towards a taxonomy of services offered by start-up business incubators: Insights from the Mediterranean region. International Journal of Entrepreneurship and Small Business, 33(4), 494–513.

    Google Scholar 

  • Cingöz, A., & Akdoğan, A. A. (2013). Strategic flexibility, environmental dynamism, and innovation performance: An empirical study. Procedia—Social and Behavioral Sciences, 99, 582–589.

    Google Scholar 

  • Collins, C. J., & Clark, K. D. (2003). Strategic human resource practices, top management team social networks, and firm performance: The role of human resource practices in creating organizational competitive advantage. Academy of Management Journal, 46(6), 740–751.

    Google Scholar 

  • Colombo, M. G., Meoli, M., & Vismara, S. (2019). Signaling in science-based IPOs: The combined effect of affiliation with prestigious universities, underwriters, and venture capitalists. Journal of Business Venturing, 34(1), 141–177.

    Google Scholar 

  • Cooper, C. E., Hamel, S. A., & Connaughton, S. L. (2012). Motivations and obstacles to networking in a university business incubator. Journal of Technology Transfer, 37(4), 433–453.

    Google Scholar 

  • Correa Rodríguez, A., Acosta Molina, M., González Pérez, A. L., & Medina Hernández, U. (2003). Size, age and activity sector on the growth of the small and medium firm size. Small Business Economics, 21(3), 289–307.

    Google Scholar 

  • Cumming, D., Meoli, M., & Vismara, S. (2019). Investors’ choices between cash and voting rights: Evidence from dual-class equity crowdfunding. Research Policy, 48(8), 103740.

    Google Scholar 

  • Di Fatta, D., Caputo, F., & Dominici, G. (2018). A relational view of start-up firms inside an incubator: The case of the ARCA consortium. European Journal of Innovation Management, 21(4), 601–619.

    Google Scholar 

  • Diez-Vial, I., & Montoro-Sanchez, A. (2017). Research evolution in science parks and incubators: Foundations and new trends. Scientometrics, 110(3), 1243–1272.

    Google Scholar 

  • Ebbers, J. J. (2014). Networking behavior and contracting relationships among entrepreneurs in business incubators. Entrepreneurship Theory and Practice, 38(5), 1–23.

    Google Scholar 

  • Eisingerich, A. B., Bell, S. J., & Tracey, P. (2010). How can clusters sustain performance? The role of network strength, network openness, and environmental uncertainty. Research Policy, 39(2), 239–253.

    Google Scholar 

  • Eveleens, C. P., van Rijnsoever, F. J., & Niesten, E. M. M. I. (2017). How network-based incubation helps start-up performance: A systematic review against the background of management theories. Journal of Technology Transfer, 42(3), 676–713.

    Google Scholar 

  • Fang, S. C., Tsai, F. S., & Lin, J. L. (2010). Leveraging tenant-incubator social capital for organizational learning and performance in incubation programme. International Small Business Journal, 28(1), 90–113.

    Google Scholar 

  • Fornell, C., & Larcker, D. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50.

    Google Scholar 

  • Fukugawa, N. (2006). Science parks in Japan and their value-added contributions to new technology-based firms. International Journal of Industrial Organization, 24(2), 381–400.

    Google Scholar 

  • Galvão, A., Marques, C., Franco, M., & Mascarenhas, C. (2019). The role of start-up incubators in cooperation networks from the perspective of resource dependence and interlocking directorates. Management Decision, 57(10), 2816–2836.

    Google Scholar 

  • Giudici, A., Reinmoeller, P., & Ravasi, D. (2018). Open-system orchestration as a relational source of sensing capabilities: Evidence from a venture association. Academy of Management Journal, 61(4), 1369–1402.

    Google Scholar 

  • Gong, Y., Law, K. S., Chang, S., & Xin, K. R. (2009). Human resources management and firm performance: The differential role of managerial affective and continuance commitment. Journal of Applied Psychology, 94(1), 263–275.

    Google Scholar 

  • Grimaldi, R., & Grandi, A. (2005). Business incubators and new venture creation: An assessment of incubating models. Technovation, 25(2), 111–121.

    Google Scholar 

  • Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariate data analysis: Pearson new international edition (7th ed.). New Jersey: Pearson/Prentice Hall.

    Google Scholar 

  • Hayes, A. (2013). Introduction to mediation, moderation, and conditional process analysis: A regression-based approach. New York, NY: The Guilford Press.

    Google Scholar 

  • Hayter, C. S. (2013). Conceptualizing knowledge-based entrepreneurship networks: Perspectives from the literature. Small Business Economics, 41(4), 899–911.

    Google Scholar 

  • Helble, Y., & Chong, L. C. (2004). The importance of internal and external R&D network linkages for R&D organisations: Evidence from Singapore. R&D Management, 34(5), 605–612.

    Google Scholar 

  • Hughes, M., Ireland, R. D., & Morgan, R. E. (2007). Stimulating dynamic value: Social capital and business incubation as a pathway to competitive success. Long Range Planning, 40(2), 154–177.

    Google Scholar 

  • Jaworski, B. J., & Kohli, A. K. (1993). Market orientation: Antecedents and consequences. Journal of Marketing, 57, 53–70.

    Google Scholar 

  • Karamanos, A. G. (2016). Effects of a firm’s and their partners’ alliance ego-network structure on its innovation output in an era of ferment. R&D Management, 46(1), 261–276.

    Google Scholar 

  • Kempster, S., & Cope, J. (2010). Learning to lead in the entrepreneurial context. International Journal of Entrepreneurial Behavior & Research, 16(1), 5–34.

    Google Scholar 

  • Kiani Mavi, R., Gheibdoust, H., Khanfar, A. A., & Kiani Mavi, N. (2019). Ranking factors influencing strategic management of university business incubators with ANP. Management Decision, 57(12), 3492–3510.

    Google Scholar 

  • Kim, N., & Atuahene-Gima, K. (2010). Using exploratory and exploitative market learning for new product development. Journal of Product Innovation Management, 27(4), 519–536.

    Google Scholar 

  • Kovach, J. J., Hora, M., Manikas, A., & Patel, P. C. (2015). Firm performance in dynamic environments: The role of operational slack and operational scope. Journal of Operations Management, 37, 1–12.

    Google Scholar 

  • Kutner, M. H., Nachtsheim, C. J., Neter, J., & Li, W. (2004). Applied linear statistical models. Boston: McGraw-Hill/Irwin.

    Google Scholar 

  • Lee, D. H., Dedahanov, A. T., & Rhee, J. (2015). Moderating role of external networks and mediating effect of innovation performance on the relationship between technology orientation and firm performance. Asian Journal of Technology Innovation, 23(3), 321–334.

    Google Scholar 

  • Li, C. R. (2013). Disentangling the effect of exploratory learning and exploitative learning in product innovation process. Canadian Journal of Administrative Sciences, 30(2), 101–114.

    Google Scholar 

  • Li, Y., Chen, H., Liu, Y., & Peng, M. W. (2014). Managerial ties, organizational learning, and opportunity capture: A social capital perspective. Asia Pacific Journal of Management, 31(1), 271–291.

    Google Scholar 

  • Li, C. R., Chu, C. P., & Lin, C. J. (2010). The contingent value of exploratory and exploitative learning for new product development performance. Industrial Marketing Management, 39(7), 1186–1197.

    Google Scholar 

  • Li, Y.-H., & Huang, J.-W. (2013). Exploitative and exploratory learning in transactive memory systems and project performance. Information & Management, 50(6), 304–313.

    Google Scholar 

  • Li, D., & Liu, J. (2014). Dynamic capabilities, environmental dynamism, and competitive advantage: Evidence from China. Journal of Business Research, 67(1), 2793–2799.

    Google Scholar 

  • Li, Y., Wei, Z., Zhao, J., Zhang, C., & Liu, Y. (2013). Ambidextrous organizational learning, environmental munificence and new product performance: Moderating effect of managerial ties in China. International Journal of Production Economics, 146(1), 95–105.

    Google Scholar 

  • Li, C. R., & Yeh, C. H. (2017). Leveraging the benefits of exploratory learning and exploitative learning in NPD: The role of innovation field orientation. R&D Management, 47(3), 484–497.

    Google Scholar 

  • Lichtenthaler, U. (2010). Organizing for external technology exploitation in diversified firms. Journal of Business Research, 63(11), 1245–1253.

    Google Scholar 

  • Lukeš, M., Longo, M. C., & Zouhar, J. (2019). Do business incubators really enhance entrepreneurial growth? Evidence from a large sample of innovative Italian start-ups. Technovation, 82–83, 25–34.

    Google Scholar 

  • Lumpkin, G. T., & Dess, G. G. (2001). Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle. Journal of Business Venturing, 16(5), 429–451.

    Google Scholar 

  • Malhotra, N. K., Kim, S. S., & Patil, A. (2006). Common method variance in IS research: A comparison of alternative approaches and a reanalysis of past research. Management Science, 52(12), 1865–1883.

    Google Scholar 

  • March, J. G. (1991). Exploration and exploitation in organizational learning. Organization Science, 2(1), 71–87.

    Google Scholar 

  • Mom, T. J. M., Van Den Bosch, F. A. J., & Volberda, H. W. (2007). Investigating managers’ exploration and exploitation activities: The influence of top-down, bottom-up, and horizontal knowledge inflows. Journal of Management Studies, 44(6), 910–931.

    Google Scholar 

  • Nijssen, E. J., & van der Borgh, M. (2017). Beyond the water cooler: Using socialization to understand use and impact of networking services on collaboration in a business incubator. R&D Management, 47(3), 443–457.

    Google Scholar 

  • Parker, S. C. (2008). The economics of formal business networks. Journal of Business Venturing, 23(6), 627–640.

    Google Scholar 

  • Pettersen, I. B., Aarstad, J., Høvig, Ø. S., & Tobiassen, A. E. (2015). Business incubation and the network resources of start-ups. Journal of Innovation and Entrepreneurship, 5(1), 7.

    Google Scholar 

  • Piazza, M., Mazzola, E., Abbate, L., & Perrone, G. (2019). Network position and innovation capability in the regional innovation network. European Planning Studies, 27(9), 1857–1878.

    Google Scholar 

  • Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879–903.

    Google Scholar 

  • Rasmussen, E., Mosey, S., & Wright, M. (2011). The evolution of entrepreneurial competencies: A longitudinal study of university spin-off venture emergence. Journal of Management Studies, 48(6), 1314–1345.

    Google Scholar 

  • Rasmussen, E., Mosey, S., & Wright, M. (2015). The transformation of network ties to develop entrepreneurial competencies for university spin-offs. Entrepreneurship and Regional Development, 27(7–8), 430–457.

    Google Scholar 

  • Rubin, T. H., Aas, T. H., & Stead, A. (2015). Knowledge flow in technological business incubators: Evidence from Australia and Israel. Technovation, 41, 11–24.

    Google Scholar 

  • Scillitoe, J. L., & Chakrabarti, A. K. (2010). The role of incubator interactions in assisting new ventures. Technovation, 30(3), 155–167.

    Google Scholar 

  • Soetanto, D. (2017). Networks and entrepreneurial learning: Coping with difficulties. International Journal of Entrepreneurial Behaviour and Research, 23(3), 547–565.

    Google Scholar 

  • Soetanto, D. P., & Jack, S. L. (2013). Business incubators and the networks of technology-based firms. Journal of Technology Transfer, 38(4), 432–453.

    Google Scholar 

  • Soetanto, D., & Jack, S. (2016). The impact of university-based incubation support on the innovation strategy of academic spin-offs. Technovation, 50, 25–40.

    Google Scholar 

  • Soetanto, D., & Jack, S. L. (2018). Slack resources, exploratory and exploitative innovation and the performance of small technology-based firms at incubators. Journal of Technology Transfer, 43(5), 1213–1231.

    Google Scholar 

  • Stam, W., Arzlanian, S., & Elfring, T. (2014). Social capital of entrepreneurs and small firm performance: A meta-analysis of contextual and methodological moderators. Journal of Business Venturing, 29(1), 152–173.

    Google Scholar 

  • Stayton, J., & Mangematin, V. (2019). Seed accelerators and the speed of new venture creation. Journal of Technology Transfer, 44(1), 1163–1187.

    Google Scholar 

  • Sullivan, D. M., & Marvel, M. R. (2011). Knowledge acquisition, network reliance, and early-stage technology venture outcomes. Journal of Management Studies, 48(6), 1169–1193.

    Google Scholar 

  • Sungur, O. (2015). Business incubators, networking and firm survival: Evidence from Turkey. International Journal of Business and Social Science, 6(5), 136–149.

    Google Scholar 

  • Taheri, M., & van Geenhuizen, M. (2011). How human capital and social networks may influence the patterns of international learning among academic spin-off firms. Papers in Regional Science, 90(2), 287–311.

    Google Scholar 

  • Tan, J., Zhang, H., & Wang, L. (2015). Network closure or structural hole? The conditioning effects of network-level social capital on innovation performance. Entrepreneurship and Regional Development, 39(5), 1189–1212.

    Google Scholar 

  • Tello, S., & Yang, Y. (2012). Nascent entrepreneurs access and use of network resources in a technology incubator. Journal of Small Business and Entrepreneurship, 253, 375–397.

    Google Scholar 

  • Tiwana, A. (2008). Do bridging ties complement strong ties? An empirical examination of alliance ambidexterity. Strategic Management Journal, 29(3), 251–272.

    Google Scholar 

  • Van Rijnsoever, F. J. (2020). Meeting, mating, and intermediating: How incubators can overcome weak network problems in entrepreneurial ecosystems. Research Policy, 49(1), 103884.

    Google Scholar 

  • Wall, T. D., Michie, J., Patterson, M., Wood, S. J., Sheehan, M., Clegg, C. W., et al. (2004). On the validity of subjective measures of company performance. Personnel Psychology, 57(1), 95–118.

    Google Scholar 

  • Wang, X., & Bao, H. (2017). Alliance portfolios and firm performance: The moderating role of environmental dynamics. Industrial Management & Data Systems, 117(8), 1550–1566.

    Google Scholar 

  • West, J., & Bogers, M. (2014). Leveraging external sources of innovation: A review of research on open innovation. Journal of Product Innovation Management, 31(4), 814–831.

    Google Scholar 

  • Zahra, S. A. (2008). Being entrepreneurial and market driven: Implications for company performance. Journal of Strategy and Management, 1(2), 125–142.

    Google Scholar 

  • Zhang, J., & Hamilton, E. (2010). Entrepreneurship education for owner-managers: The process of trust building for an effective learning community. Journal of Small Business and Entrepreneurship, 23(2), 249–270.

    Google Scholar 

  • Zhao, Y., Li, Y., Lee, S. H., & Chen, L. B. (2011). Entrepreneurial orientation, organizational learning, and performance: Evidence from China. Entrepreneurship Theory and Practice, 35(2), 293–317.

    Google Scholar 

  • Ziaee Bigdeli, A., Kamal, M., & de Cesare, S. (2013). Information sharing through inter-organisational systems in local government. Transforming Government: People, Process and Policy, 7(2), 148–176.

    Google Scholar 

Download references

Funding

This study was supported by the National Social Science Foundation of China (Grant No.17BGL025) and Ministry of Science & Technology, Taiwan (MOST 108-2511-H-003 -034 –MY2).

Author information

Authors and Affiliations

  1. College of Management and Economics, Tianjin University, No. 92 Weijin Road, Nankai District, Tianjin, China

    Wenqing Wu & Hongxin Wang

  2. Graduate Institute of Global Business and Strategy, National Taiwan Normal University, National Taipei University of Education, 31 Shida Road, Daan District, Taipei City, 10645, Taiwan

    Yenchun Jim Wu

Authors
  1. Wenqing Wu
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Hongxin Wang
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Yenchun Jim Wu
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Yenchun Jim Wu.

Ethics declarations

Conflict of interest

The authors declare that they have no conflict of interest.

Ethical approval

According to institutional and national guidelines, this study does not require ethical approval.

Informed consent

The survey obtained the informed consent of all participants.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Wu, W., Wang, H. & Wu, Y.J. Internal and external networks, and incubatees’ performance in dynamic environments: entrepreneurial learning’s mediating effect. J Technol Transf 46, 1707–1733 (2021). https://doi.org/10.1007/s10961-020-09790-w

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10961-020-09790-w

Keywords

JEL Classification

Search

Navigation