Performance of Incubator Centre’s in Kenya: The Pivotal Pole of Entrepreneurial Panagement

Jane Kinya Miriti, Kenneth Lawrence Wanjau, Humphrey R Omondi

Abstract


Globally, countries are strategically positioning themselves for market leadership due to dynamic business environment. Entrepreneurial spirit is seen as the strategy that will deliver this agenda. This spirit is believed to be behind the innovative business that revolutionizes the business world. In a dynamic and complex environment, the success of any business is pegged on the entrepreneurial operations of a firm. Entrepreneurial-oriented firms have been proven to be ahead of competition because they are always introduced new products and services and in turn improve their financial results. Scholars believe that learning and development can occur amongst people who actively engage in a common enterprise, making learning, empowering and productive and thus sustain entrepreneurial orientation. This in turn produces communities of entrepreneurial practice. The role of the entrepreneurial manager is to nurture communities of growth-oriented firms where entrepreneurial learning takes place. The purpose of this study is to assess the relationship between entrepreneurial management and performance of incubator centre in Kenya. The study used a correlation design because it focused on a causal-effect relationship. 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 entrepreneurial management and performance incubator centre in Kenya. The joint effect model results indicated that entrepreneurial management had a significant relationship with performance of incubator centre.

Keywords


Entrepreneurial management, entrepreneurial orientation, performance of incubator centres’, structural equation modelling

Full Text:

PDF

References


Ahmad, A.J. and Ingle, S. (2011). Relationships Matter: Case Study of a University Campus Incubator. International Journal of Entrepreneurship Behaviour and Research, 17 (6),626-644.

Ayatse, F.A.;Kwahar, N.and Iyortsuun, A.S. (2017). Business Incubation process and firm performance: an empirical review.7: 2. Doi: 10.1186/s40497-016-0059-6

Barney, J. (1991). “Firm Resources and Sustained Competitive Advantage”, Journal of Management, 17(1), 99-120.

Brown, T.E.; Davidsson, P. and Wiklund, J. (2001), ‘‘An operationalization of stevenson’s conceptualization of entrepreneurship as opportunity based behavior’’, Strategic Management Journal, 22.( 10), 953-68.

Bruneel, J.; Ratinho, T. and claryssea, B. G., (2012). The Evolution of Business Incubator Groups Specialization: Comparing Demand and Supply of Business Incubation Services across Different Incubator Generations. Technovation, 32 (2), 110-1.

Byrne, B. M. (2001). Structural Equation Modeling with AMOS, Basic Concepts, Applications, and Programming. Hillsdale, New Jersey: Lawrence Erlbaum Associates.

Cohen, J., Cohen, P., West, S. G. & Aiken, L. S. (2003), Applied Multiple Regression/ Correlation Analysis for the Behavioral Sciences. Journal of the American Medical Information Association, 14 (2), 239-243.

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

Dey, P. (2012). Incubation of Micro and Small Enterprises- an approach to Local Economic Development. International Journal of Science & Engineering Research, 3 (5).

Ferreira, J., Azevedo, S. C. (2008), “Entrepreneurial Orientation and growth of firms: Key lessons for managers and business professionals”, Problems and perspectives in management, 6(1), 82-88.

Foss, N.and Knudsen, T. (2003). “The Resource-Based Tangle: Towards a Sustainable Explanation of Competitive Advantage”, Managerial and Decision Economics, 24(4), 291-307.

Gürbüz, G. and Aykol, S. (2009). Entrepreneurial Management, Entrepreneurial Orientation and Turkish Small Firm Growth. Management Research News, 32(4), 321-336.

Hortovanyi, L.(2012). Entrepreneural Management. AULA Kiado Kft, Hungary.

Hrobjartsson, K.A. (2014), Measuring the effectiveness of NMI’s incubators.A study of public business incubators in Iceland.

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

Khalil, M.A, Olafsen, E. (2009), Enabling Innovative Entrepreneurship through Business Incubation. In Lopez- Claros, (A). (Ed.). The Innovation for Development Report 2009-2010. Strengenthening Innovation for the prosperity of Nations.

Kennerley, M. and Neely, A. (2003). Measuring performance in a changing business environment. International Journal of Operations & Production Management, 23(2), 213–229. doi:10.1108/01443570310458465.CrossRefGoogle Scholar

Khan, M. N.; Baharun, R.; Rahim, K. A. and Zakuan, N. (2011). An empirical evidence of performance measurement of audit firms in Malaysia. International Business Research, 4(4), 191–198. doi:10.5539/ibr.v4n4p191.CrossRefGoogle Scholar

Kimuli, S.N.L., (2011). Strategic Entrepreneurship and Performance of Selected Private Schools in Wakisio District. (Masters thesis, Makerere University.)

Lechner, C. and Vidar, S.,(2014). Entrepreneural Orientation, firm strategy and small firm performance, 32,36. Doi: 101177/0266242612455034

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.

MacCallum, R.C,; Widaman, K.F,; Zhang, S. and Hong, S. (1999).Sample size in factor analysis. Psychological Methods, 4,84–99

Mugenda, A. (2008). Social Science Research: Conception, Methodology and Analysis. Nairobi: Kenya Applied Research and Training Services.

Nunnally JC., (1967). Psychometric Theory. New York, NY: McGraw-Hill

Peteraf, M. and Bergen, M. (2003) Scanning dynamic competitive landscapes: a market-based and resource-based framework, Strategic Management Journal, (24), 1027-1041..

Phan, P.; Siegel, D.S. and Wright, M. (2005). Science parks and incubators: Observations, synthesis and future research. Journal of Business Venturing, 20 (2), 165–182. doi:10.1016/j.jbusvent.2003.12.001.CrossRefGoogle Scholar

Stevenson, H. and Gumpert, D. (1985), ‘‘The heart of entrepreneurship’’, Harvard Business Review,March-April, pp. 85-94.

Tabachnick, B. G., & Fidell, L.s. (2007). Using Multivariate Statistics, (2nd ed). New York: HarperCollins.

Tell, J. (2012). Managerial strategies in small, fast-growing manufacturing firms. The Journal of Management Development, 31(7), 700-710.

Theodorakopoulos, N.; Kakabadse, N. K. and McGowan, C. (2014). What Matters in Business Incubation? A Literature Review and a Suggestion for Situated Theorizing .Journal of small Business and Enterprise Development, 21(4); 602-622.

Wiggins, J. and Gibsons. J. (2003). Overview of US Incubators and the case of the Austin Technology Incubator. International Journal of Entrepreneurship and Innovation Management, 56-66.

Zhou, H.and Wit, G. (2009). Determinants and dimensions of firm growth. Published report, Netherlands




DOI: http://dx.doi.org/10.20525/ijrbs.v7i1.859

Refbacks

  • There are currently no refbacks.


Copyright (c) 2018 International Journal of Research in Business and Social Science (2147-4478)

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Creative Commons License
International Journal of Research in Business and Social Science (2147-4478) by Umit Hacioglu is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Based on a work at www.ssbfnet.com/ojs

 


"SSBFNET SSBFNET SSBFNET