Business incubator affiliation: impact on incubator funding and services

In this study, incubator affiliations (defined as an incubator’s propensity to network or affiliate with different types of external entities) of 84 business incubators in the USA and its relationship with incubator funding sources and nature of services provided were studied. Four types of affiliation-based relationships were identified: totally unaffiliated, affiliated with other incubator(s), affiliated with university, and affiliated with other incubator(s) and university. Results indicated that the incubator’s affiliation influenced its ability to access funding and provide financial assistance to incubatees, as well as the nature and level of tangible/administrative and value-added services provided to incubatee firms. Based on these findings, two distinct groups of incubators were identified, each with distinctly different strategic foci, service emphasis and funding approaches. Strategy and managerial implications for both categories of incubators are discussed.