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Effect Of Infrastructural Facilities Support Provided By Business Incubators On Technology Based New Venture Creation In Kenya

Author

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  • James Mwangi Njau

  • Dr. Lilian Mugambi Karimi Mwenda

  • Dr. Anita Wanjugu Wachira

Abstract

Purpose: The study sought to assess the effect of infrastructural facilities support provided by business incubators on technology based new venture creation in Kenya. Methodology: The study adopted descriptive research design. The population of study was 9 business incubator managers and 384 incubatees in Nairobi Metropolitan. Census was applied for the incubator managers and Stratified Random sampling was used to arrive at a sample size of 185 incubatees, and the response rate was 82.2 % for incubatees and 88.9% for incubator managers respectively. Data from incubator managers was collected using a structured interview schedule while cross sectional survey was conducted for the incubatees using a structured questionnaire. Quantitative data was analysed using descriptive and inferential statistics while qualitative data was analysed using qualitative data analysis method. Results: The study revealed that infrastructural facilities support had a positive significant effect on technology based new venture creation. The Pearson's correlation coefficient was r=0.343, p<0.05 and the beta value was 0.260, p<0.05 and t test value was 8.518, p<0.05. Therefore, the null hypothesis was rejected at 0.005 significance level. Unique contribution to theory, practice and policy: The study recommends integration of incubation models for a better understanding of the business incubation process. The business incubation practitioners can use the finding of this study to model a roadmap for incubation of technology based new venture creation in Kenya while entrepreneurs will be able to appreciate how infrastructural facilities support provided by business incubators can help them to overcome the liability of smallness and newness. On policy implications, the study identified the policy gaps that need to be addressed in relation to provision of infrastructural facilities support in the new venture creation ecosystem by business incubators in Kenya.

Suggested Citation

  • James Mwangi Njau & Dr. Lilian Mugambi Karimi Mwenda & Dr. Anita Wanjugu Wachira, 2019. "Effect Of Infrastructural Facilities Support Provided By Business Incubators On Technology Based New Venture Creation In Kenya," International Journal of Entrepreneurship and Project Management, IPRJB, vol. 4(1), pages 17-32.
    • Handle: RePEc:bdu:oijepm:v:4:y:2019:i:1:p:17-32:id:814
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    References listed on IDEAS

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    1. Sean M. Hackett & David M. Dilts, 2004. "A Systematic Review of Business Incubation Research," The Journal of Technology Transfer, Springer, vol. 29(1), pages 55-82, January.
    2. Schutjens, Veronique & Stam, Erik, 2003. "The Evolution and Nature of Young Firm Networks: A Longitudinal Perspective," Small Business Economics, Springer, vol. 21(2), pages 115-134, September.
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