Industrial Engineering and Management Systems

Korean Institute of Industrial Engineers (대한산업공학회)
권호 표지
DOI QR코드

DOI QR Code

The Nigerian Business Incubation Programme: The Moderating Role of Government Policy

  • Received : 2014.01.28
  • Accepted : 2014.07.29
  • Published : 2014.09.30
Download PDF
⟨ Previous Next ⟩

Abstract

An instrument which practitioners have acknowledged as an essential mechanism used in supporting greenhorn companies is the business incubation system. Several countries of the world have implemented the business incubation concept ever since it was conceived and developed in the United States in 1959. It is a model that has typically given itself much more readily within industrialized countries with identical environments to the United States. Nigeria also adapted it in 1993 where the resulting process and practice failed to live up to anticipations. To determine the significant role of government policy on the incubation dimensions and its success is the purpose of this research. Data collection process involved the surveying of stakeholders in Nigeria with some direct involvement in the national programme. The Partial Least Squares (PLS) was employed for the analysis. The findings showed that all exogenous variables collectively explained 52.4% of the variance in success. Meanwhile, when a moderation effect is present; the variable increased to 62.3%. Consequently, it is recommended that for a business incubation scheme to be successful and effective, government needs to implement efficient policies since results showed that these policies influenced all the relationships. The results' implications as well as limitations of the study are discussed.

Keywords

References

  1. Adegbite, O. (2001), Business incubators and small enterprise development: the Nigerian experience, Small Business Economics, 17(3), 157-166. https://doi.org/10.1023/A:1011801018398
  2. Akcomak, I. S. (2009), Incubators as tools for entrepreneurship promotion in developing countries, Report No. 2009.52, United Nations University-World Institute for Development Economics Research, Helsinki, Finland.
  3. Allen, D. N. and McCluskey, R. (1990), Structure, policy, services and performance in the business incubator industry, Journal of Entrepreneurship Theory and Practice, 15(2), 61-77.
  4. Anderson, B. B. and Hanadi, A. M. (2012), The Gateway Innovation Center: exploring key elements of developing a business incubator, World Journal of Entrepreneurship, Management and Sustainable Development, 8(4), 208-216.
  5. Autio, E. and Klofsten, M. (1998), A comparative study of two European business incubators, Journal of Small Business Management, 36(1), 30-43.
  6. Barclay, D., Higgins, C., and Thompson, R. (1995), The partial least squares (PLS) approach to causal modeling: personal computer adoption and use as an illustration, Technology Studies, 2(2), 285-309.
  7. Bergek, A. and Norrman, C. (2008), Incubator best practice: a framework, Technovation, 28(1), 20-28. https://doi.org/10.1016/j.technovation.2007.07.008
  8. Bollingtoft, 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. https://doi.org/10.1016/j.technovation.2011.11.005
  9. Chin, W. W. (1998), The partial least squares approach to structural equation modeling. In: Marcoulides, G. A. (ed.), Modern Methods for Business Research, Lawrence Erlbaum Associates, Mahwah, NJ, 295-336.
  10. Chin, W. W. (2010), How to write up and report PLS analyses, In: Handbook of Partial Least Squares, ringer, Heidelberg, Germany, 655-690.
  11. Cohen, J. (1988), Statistical Power Analysis for the Behavioral Sciences (2nd ed.), Lawrence Erlbaum Associates, Mahwah, NJ.
  12. Fornell, C. and Larcker, D. F. (1981a), Structural equation models with unobservable variables and measurement error: algebra and statistics, Journal of Marketing Research, 18(3), 382-388. https://doi.org/10.2307/3150980
  13. Fornell, C. and Larcker, D. F. (1981b), Evaluating structural equation models with unobservable variables and measurement error, Journal of Marketing Research, 18(1), 39-50. https://doi.org/10.2307/3151312
  14. Gil-Garcia, J. R. (2008), Using partial least squares in digital government research, In: Handbook of Research on Public Information Technology, IGI Global, London, 239-253.
  15. Guest, G., Namey, E. E., and Mitchell, M. L. (2012), Collecting Qualitative Data: A Field Manual for Applied Research, Sage Publications, Thousand Oaks, CA.
  16. Hackett, S. M. and Dilts, D. M. (2004), A real optionsdriven theory of business incubation, Journal of Technology Transfer, 29(1), 41-54. https://doi.org/10.1023/B:JOTT.0000011180.19370.36
  17. Hair, J. F., Hult, G. T. M., Ringle, C., and Sarstedt, M. (2013a), A Primer on Partial Least Squares Structural Equations Modeling (PLS-SEM), Sage Publications, Thousand Oaks, CA.
  18. Hair, J. F., Ringle, C. M., and Sarstedt, M. (2011), PLSSEM: indeed a silver bullet, Journal of Marketing Theory and Practice, 19(2), 139-152. https://doi.org/10.2753/MTP1069-6679190202
  19. Hair, J. F., Ringle, C. M., and Sarstedt, M. (2012a), Editorial-Partial Least Squares: the better approach to structural equation modeling? Long Range Planning, 45(5-6), 312-319. https://doi.org/10.1016/j.lrp.2012.09.011
  20. Hair, J. F., Ringle, C. M., and Sarstedt, M. (2013b), Editorial-Partial Least Squares Structural Equation Modeling: rigorous applications, better results and higher acceptance, Long Range Planning, 46(1-2), 1-12. https://doi.org/10.1016/j.lrp.2013.01.001
  21. Hair, J. F., Sarstedt, M., Pieper, T. M., and Ringle, C. M. (2012b), Applications of partial least squares path modeling in management journals: a review of past practices and recommendations for future applications, Long Range Planning, 45(5-6), 320-340. https://doi.org/10.1016/j.lrp.2012.09.008
  22. Hair, J. F., Sarstedt, M., Ringle, C. M., and Mena, J. A. (2012c), An assessment of the use of partial least squares structural equation modeling in marketing research, Journal of the Academy of Marketing Science, 40(3), 414-433. https://doi.org/10.1007/s11747-011-0261-6
  23. Henseler, J. and Fassott, G. (2010), Testing moderating effects in PLS path models: an illustration of available procedures. In: Handbook of Partial Least Squares: Concepts, Methods and Applications, Springer, Heidelberg, Germany, 713-735.
  24. Henseler, J., Ringle, C. M., and Sarstedt, M. (2012), Using partial least squares path modeling in advertising research: basic concepts and recent issues. In: Handbook of Research on International Advertising, Edward Elgar, Cheltenham, UK, 252-276.
  25. Henseler, J., Ringle, C. M., and Sinkovics, R. R. (2009), The use of partial least squares path modeling in international marketing. In: Sinkovic, R. R. and Ghauri, P. N. (eds.), Advances in International Marketing, Emerald, Bingey, UK, 277-319.
  26. Hui, B. S. and Wold, H. (1982), Consistency and consistency at large of partial least squares estimates. In: Systems under Indirect Observation (Part II), North Holland, Amsterdam, 119-130.
  27. InfoDev (2010), Global Good Practice in Incubation Policy Development and Implementation, The World Bank, Wahington, DC.
  28. Joreskog, K. G. (1978), Structural analysis of covariance and correlation matrices, Psychometrika, 43(4), 443-477. https://doi.org/10.1007/BF02293808
  29. Joreskog, K. G. (1982), The LISREL approach to causal model-building in the social sciences. In: Systems under Indirect Observation (Part I), North Holland, Amsterdam, 81-100.
  30. Joreskog, K. G. and Goldberger, A. S. (1975), Estimation of a model with multiple indicators and multiple causes of a single latent variable, Journal of the American Statistical Association, 70(351a), 631-639.
  31. Kumar, K. S. and Ravindran, D. S. R. (2012), A study on elements of key success factors determining the performance of incubators, European Journal of Social Sciences, 28(1), 13-23.
  32. Lagos, D. and Kutsikos, K. (2011), The role of ITfocused business incubators in managing regional development and innovation, European Research Studies Journal, 14(3), 33-50.
  33. Lee, S. S. and Osteryoung, J. S. (2004), A comparison of critical success factors for effective operations of university business incubators in the United States and Korea, Journal of Small Business Management, 42(4), 418-426. https://doi.org/10.1111/j.1540-627X.2004.00120.x
  34. Leedy, P. and Ormrod, J. (2013), Practical Research: Planning and Design (10th ed.), Pearson Education Inc., Boston, MA.
  35. Lewis, D. A., Harper-Anderson, E., and Molnar, L. A. (2011), Incubating Success: Incubation Best Practices that Lead to Successful New Ventures, US Economic Development Administration, Washington, DC.
  36. Lohmoller, J. B. (1989), Latent Variable Path Modeling with Partial Least Squares, Physica-Verlag, Heidelberg.
  37. Lu, Y., Yang, S., Chau, P. Y., and Cao, Y. (2011), Dynamics between the trust transfer process and intention to use mobile payment services: a cross-environment perspective, Information and Management, 48(8), 393-403. https://doi.org/10.1016/j.im.2011.09.006
  38. Lumpkin, J. R. and Ireland, R. D. (1988), Screening practices of new business incubators: the evaluation of critical success factors, American Journal of Small Business, 12(4), 59-81. https://doi.org/10.1177/104225878801200404
  39. Markley, D. M. and McNamara, K. T. (1994), A business incubator: operating environment and measurement of economic and fiscal impacts, Working paper, Center for Rural Development, Purdue University, West Lafayette, IN.
  40. Mbewana, P. N. (2006), The key success factors for business incubation in South Africa: the Godisa case study, Master's thesis, University of Pretoria, South Africa.
  41. Molnar, L. A., Adkins, D., Yolanda, B., Grimes, D., Sherman, H., and Tornatzky, L. (1997), Business Incubation Works, NBIA Publications, Athens, OH.
  42. National Business Incubation Association (2010), How many business incubators are there? http://www.nbia.org/resource_library/faq/#3.
  43. Ozdemir, O. C. and Sehitoglu, Y. (2013), Assessing the impacts of technology business incubators: a framework for technology development centers in Turkey, Procedia-Social and Behavioral Sciences, 75, 282-291. https://doi.org/10.1016/j.sbspro.2013.04.032
  44. Peters, L., Rice, M., and Sundararajan, M. (2004), The role of incubators in the entrepreneurial process, Journal of Technology Transfer, 29(1), 83-91. https://doi.org/10.1023/B:JOTT.0000011182.82350.df
  45. Podsakoff, P. M., Williams, L. J., and Todor, W. D. (1986), Effects of organizational formalization on alienation among professionals and nonprofessionals, Academy of Management Journal, 29(4), 820-831. https://doi.org/10.2307/255948
  46. Reinartz, W., Haenlein, M., and Henseler, J. (2009), An empirical comparison of the efficacy of covariancebased and variance-based SEM, International Journal of Research in Marketing, 26(4), 332-344. https://doi.org/10.1016/j.ijresmar.2009.08.001
  47. Rice, M. P. (2002), Co-production of business assistance in business incubators: an exploratory study, Journal of Business Venturing, 17(2), 163-187. https://doi.org/10.1016/S0883-9026(00)00055-0
  48. Ringle, C. M., Sarstedt, M., and Straub, D. W. (2012), Editor's comments: a critical look at the use of PLS-SEM in MIS quarterly, MIS Quarterly, 36(1), iii-xiv.
  49. Ringle, C. M., Wende, S., and Will, A. (2005), Smart PLS 2.0 (beta), http://smartpls.software.informer.com/2.0/.
  50. Sekaran, U. (2003), Research Methods for Business: A Skill Building Approach (4th ed.), John Wiley and Sons, New York, NY.
  51. Ticehurst, G. and Veal, A. J. (2000), Business Research Methods: A Managerial Approach, Longman, NSW, Australia.
  52. Verma, S. (2004), Success factors for business incubators: an empirical study of Canadian business incubators, Master's thesis, Carleton University, Ottawa, ON.
  53. Wold, H. (1974), Causal flows with latent variables: partings of the ways in the light of NIPALS modelling, European Economic Review, 5(1), 67-86. https://doi.org/10.1016/0014-2921(74)90008-7