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Determination of Critical Factors for Success in Business Incubators and Startups in East Java

Author

Listed:
  • Habiburrahman

    (Faculty Economic and Business, Universitas Bandar Lampung, Bandar Lampung 35142, Indonesia)

  • Andjar Prasetyo

    (Regional Development Planning Agency, Magelang City 56172, Indonesia)

  • Tri Wedha Raharjo

    (Regional Development Planning Agency, Surabaya 60174, Indonesia)

  • Herrukmi Septa Rinawati

    (Regional Development Planning Agency, Surabaya 60174, Indonesia)

  • Trisnani

    (National Research and Innovation Agency, Jakarta 10340, Indonesia)

  • Bambang Riawan Eko

    (National Research and Innovation Agency, Jakarta 10340, Indonesia)

  • Wahyudiyono

    (National Research and Innovation Agency, Jakarta 10340, Indonesia)

  • Sekar Nur Wulandari

    (Planning, Research and Development Agency, Tanjung Pinang 29113, Indonesia)

  • Mochammad Fahlevi

    (Management Department, BINUS Online Learning, Bina Nusantara University, Jakarta 11480, Indonesia)

  • Mohammed Aljuaid

    (Department of Health Administration, College of Business Administration, King Saud University, Riyadh 11451, Saudi Arabia)

  • Petra Heidler

    (IMC Fachhochschule Krems, University of Applied Sciences Krems, 3500 Krems, Austria)

Abstract

The reference to the success factors of incubators and startups in running their business so far has been ambiguous. The purpose of this study is to analyze the critical factors that can affect the success of incubators and startups. The quantitative research method describes the research results. The study locus is in East Java Province, Indonesia with primary data from respondents in five regions: Banyuwangi, Jember, Madiun, Malang, and Surabaya. The number of respondents was 41 from incubators and 59 from startups with identification of domicile, type of business, and business turnover. Data was collected using surveys and interviews with 100 respondents. The analysis in this study uses eleven factors that are assumed to be factors of business success that have been tested with Kaiser Meyer Olkin Measure (KMO), Measure of Sampling Adequacy (MSA), Bartlett’s test, and Cronbach Alpha. The critical point used for the KMO value is between 0.5 and 1, the MSA test critical point is 0.5, Bartlett’s test is less than the significance level (α = 0.05), and α cronbach ≥ 0.60. The analyzed factors are as follows: synergy products; processes; innovation management; communication; culture; experience; information technology; innovation skills; functional skills; and implementation skills. As a result, incubators and startups agree on eleven critical factors to building their business success, but there are differences in the priority scale between incubators and startups on these eleven factors.

Suggested Citation

  • Habiburrahman & Andjar Prasetyo & Tri Wedha Raharjo & Herrukmi Septa Rinawati & Trisnani & Bambang Riawan Eko & Wahyudiyono & Sekar Nur Wulandari & Mochammad Fahlevi & Mohammed Aljuaid & Petra Heidler, 2022. "Determination of Critical Factors for Success in Business Incubators and Startups in East Java," Sustainability, MDPI, vol. 14(21), pages 1-17, October.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:21:p:14243-:d:959405
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    Cited by:

    1. Concy Liberata Noronha & Subhash Kizhakan Veatil Bhaskaran Pillai, 2025. "Fostering startups through the vehicle of entrepreneurial support organisations like technology business incubators (TBIs): a systematic literature review," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 15(1), pages 1-39, December.
    2. Andjar Prasetyo & Nana Noviana & Weni Rosdiana & M. Arief Anwar & Hartiningsih & Hendrixon & Bekti Putri Harwijayanti & Mochammad Fahlevi, 2023. "Stunting Convergence Management Framework through System Integration Based on Regional Service Governance," Sustainability, MDPI, vol. 15(3), pages 1-23, January.
    3. Hitmi Khalifa Alhitmi & Syed Haider Ali Shah & Rabia Kishwer & Nida Aman & Mochammad Fahlevi & Mohammed Aljuaid & Petra Heidler, 2023. "Marketing from Leadership to Innovation: A Mediated Moderation Model Investigating How Transformational Leadership Impacts Employees’ Innovative Behavior," Sustainability, MDPI, vol. 15(22), pages 1-22, November.
    4. Mochammad Fahlevi & Aulia Luqman Aziz & Mohammed Aljuaid & Sebastian Saniuk & Sandra Grabowska, 2025. "Seasonal Income Effects on Financial Awareness, Capability, and Risky Behavior in Agro-Industrial MSMEs in East Java," Agriculture, MDPI, vol. 15(7), pages 1-21, March.

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