Client Selection Criteria and Performance of Incubator Centers in Kenya

Abstract

Business incubators are regarded as entrepreneurial hubs, unleashing entrepreneur’s ideas and businesses into the market, in turn, jobs are created and the economy of the area is improved. Due to the stiff competition for placement into an incubator program it is imperative for incubator management come-up with strategies of being more efficient and effective in utilizing resources to achieve superior performance. Hence the need to critically select clients, whose ideas fit the incubator’s mission and upon graduation create high growth businesses, with a higher survival rate of 90%. The study is anchored on Resource Based Theory. The study used a correlation design that focused on causal relationship of client selection criteria and incubator centre performance (ICP). The study population was 41 incubator managers in Kenya. After missing data analysis two respondents were expunged leaving 39 respondents. Secondary data was obtained from published sources such as company reports, manuals and research done by other scholars. Structural Equation Modelling (SEM) approach was used to analyze the measurement model and test the hypothesized relationship in this study. Simple linear regression model was used to measure the strength of the relationship between client selection criteria and performance incubator centre in Kenya. The results of the combined effect model indicated that client selection criteria had a significant relationship with performance of incubator centres.

Keywords: {'name': 'Client Selection Criteria'}, {'name': 'Resource based view'}, {'name': 'Structural Equation Model'}, {'name': 'Incubator Centers'}

Authors & affiliations

Miriti Jane Kinya
Affiliation not supplied

Kenneth L Wanjau
Affiliation not supplied

Humphrey R Omondi
Affiliation not supplied

Deposited references

Supplied references, not a list of publications citing this article.

DOI: 10.1108/13552551111174701

DOI: 10.1108/IJEBR-11-2012-0133

Baier, S.; Agakar, M.; Sinha, S.; Guta, A. and Pooja, N. (2015). Closing the Gap Kenya. Update on Key Challenges for the “Missing Middle” in Kenya, Infonauts, Nairobi.

DOI: 10.1016/j.technovation.2007.07.008

DOI: 10.1016/j.technovation.2011.11.003

Chimi.J. and Russell, D. L. (2009). The Likert Scale: A Proposal for Improvement Using Quasi-Continuous Variables. In The Proceedings of the Information Systems Education Conference, Washington DC: 1542-7382.

Cooper,D.R.and Schindler, P.S. (2011). Business Research Methods.(11th ed.). New York: McGraw-Hill.

Ganamotse, G. N. (2011). A Conceptual Framework for Examining Selection Practices of Business Incubators 10th International Entrepreneurship Forum, Tamkeen, Bahrain, 9-11.

DOI: 10.1023/B:JOTT.0000011181.11952.0f

Israel, G. D. (2012). Sampling: Determining Sample Size. (U. o. Extension, Ed.)

Kenya National Bureau of Statistics (2017). Economic Survey 2017, Government Printer, Nairobi.

DOI: 10.1108/03068290710726748

Kirzner, I.M. (1979). Perception, opportunity and profit: Studies in the theory of entrepreneurship. Chicago: university of Chicago press.

DOI: 10.1111/j.1749-6632.1996.tb24870.x

Lewis, D.A.; Harper-Anderson, K.; and Molnar, L. A. (2011). Incubating Success Incubation: Best Practices that Lead to Successful New Ventures. Institute for Research on Labour, Employment, and the Economy, University of Michigan, Ann Arbor, MI.

DOI: 10.1037/1082-989X.4.1.84

Nunnally, J.C.(1967).Psychometric theory. New York, NY: McGraw-Hill

DOI: 10.1111/j.1467-6486.2004.00427.x

Ruhiu, W.; Ngugi, K.; and Waititu, G. (2015).Effects of Managerial Skills on the growth of incubated micro & small enterprises in Kenya.International journal of social sciences and Entrepreneurship,1,(12).

Schumpeter, J. A. (1934). Theory of Economic Development (11th ed.). Berlin, Germany: Duncker&Humblot.

Wachira, K. (2017). The Role of University based Business Incubators Strategy on Enterprise Growth in Kenya. (PhD thesis, Jomo Kenyatta University of Agriculture and Technology.)

Wulung, R.; Takahashi, K. and Morikawa, K.(2014). An interactive multi-objective incubate selection model incorporating incubator manager orientation. Springer Publication Online.