Journal Screenshot

International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Strategic Support from Business Incubators: Unveiling their Impact on Entrepreneurial Success in Malaysia’s Start-Ups

Mohd Noor Hidayat Jimainal, Nor Afifah Yusof, Khairiah Mazdiah Kalimin, Suddin Lada, Brahim Chekima, Rudy Ansar, Ming Fook Lim, Ramraini Ali Hassan, Faerozh Madli, Kelvin Yong

http://dx.doi.org/10.6007/IJARBSS/v14-i9/22596

Open access

The objective of this study is to examine the influence of business incubators' business support and infrastructure on the success of early-stage companies in Malaysia. The performance of early-stage companies may not be adequately assessed due to certain perceived deficiencies. Consequently, there is ongoing debate regarding the extent to which the components of a business incubator effectively contribute to the success of early-stage companies. The study's respondents consist of entrepreneurs who have completed programs at business incubators in Sabah, Sarawak, Johor, Kuala Lumpur, Selangor, and Penang. The analysis will be based on 100 questionnaires and will utilize the Structural Equation Modeling (SEM) technique employing Partial Least Squares (PLS). The findings of this research may be valuable for policymakers and government authorities in establishing benchmarks and may also provide business incubators with insights into the entrepreneurs within their programs. Additionally, other researchers can utilize this study as a point of reference for future investigations in related fields of study.

Abetti, P. A. (2004). Government-Supported Incubators in the Helsinki Region, Finland: Infrastructure, Results, and Best Practices. The Journal of Technology Transfer, 29(1), 19-40. https://doi.org/10.1023/B:JOTT.0000011179.47666.55
Aerts, K., Matthyssens, P., & Vandenbempt, K. (2007). Critical Role and Screening Practices of European Business Incubators. Technovation, 27(5), 254-267. https://doi.org/10.1016/j.technovation.2006.12.002
Ahmad, N. H., & Seet, P. (2009). Dissecting Behaviors Associated with Business Failure: A Qualitative Study of SME Owners in Malaysia and Australia. Asian Social Science, 5(9). https://doi.org/10.5539/ass.v5n9p98
Al-Mubaraki, H. M., Busler, M., & Aruna, M. (2013). Towards a New Vision for Sustainability of Incubator Best Practices Model in the Years to Come. Journal of Economics and Sustainable Development, 4(1), 114-128.
Alzaghal, Q. K., & Mukhtar, M. (2017). Factors Affecting The Success of Incubators and The Moderating Role of Information and Communication Technologies. International Journal on Advanced Science Engineering and Information Technology, 7(2), 538. https://doi.org/10.18517/ijaseit.7.2.1678
Anderson, J. C., & Gerbing, D. W. (1988). Structural Equation Modeling in Practice: A Review and Recommended Two-Step Approach. Psychological Bulletin, 103(3), 411-423. https://doi.org/10.1037/0033-2909.103.3.411
Bergek, A., & Norrman, C. (2008). Incubator Best Practice: A framework. Technovation, 28(1-2), 20-28. https://doi.org/10.1016/j.technovation.2007.07.008
Chin, W. W. (1998). The Partial Least Squares Approach to Structural Equation Modeling. Modern Methods for Business Research, 295(2), 295-336.
De Oliveira Haase, M. A., De Faria, A. F., & Tupy, I. S. (2024). Analysis of the survival of technology-based companies linked to business incubators. Innovation, 1–22. https://doi.org/10.1080/14479338.2024.2302411
Egbetokun, A. (2023). Business incubators in Africa: a review of the literature. Innovation and Development, 1–28. https://doi.org/10.1080/2157930x.2023.2295090
Eniola, A. A., & Entebang, H. (2015). SME Firm Performance-Financial Innovation and Challenges. Procedia - Social and Behavioral Sciences, 195, 334-342. https://doi.org/10.1016/j.sbspro.2015.06.361
Faul, F., Erdfelder, E., Buchner, A., & Lang, A.G. (2009). Statistical Power Analyses Using G*Power 3.1: Tests for Correlation and Regression Analyses. Behavior Research Methods, 41(4), 1149-1160. https://doi.org/10.3758/BRM.41.4.1149
Fithri, P., Hasan, A., Syafrizal, S., & Games, D. (2024). Enhancing Business Incubator Performances from Knowledge-Based Perspectives. Sustainability, 16(15), 6303. https://doi.org/10.3390/su16156303
Flanschger, A., Heinzelmann, R., & Messner, M. (2023). Between consultation and control: how incubators perform a governance function for entrepreneurial firms. Accounting Auditing & Accountability Journal, 36(9), 86–107. https://doi.org/10.1108/aaaj-09-2020-4950
Fuel, P., Pardo-Del-Val, M., & Revuelto-Taboada, L. (2021). Does the ideal entrepreneurial team exist? International Entrepreneurship and Management Journal, 18(3), 1263–1289. https://doi.org/10.1007/s11365-020-00739-x
Hackett, S. M., & Dilts, D. M. (2004). A Systematic Review of Business Incubation Research. Journal of Technology Transfer, 29(1), 55-82. https://doi.org/10.1023/B:JOTT.0000011181.11952.0f
Hair, J. F., Hult, G. T., Ringle, C., Sarstedt, M. (2016). A primer on partial least squares structural equation modelling (PLS-Sem) (2nd ed.). Thousand Oaks: Sage Publication.
Hair, J. F., Jr., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2014). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). SAGE Publications. Inc.
Hasin, H., Minhad, S. F. N., & Omar, N. (2023). Exploring The Causes of Business Decline in Malaysia: An In-Depth Analysis of Contributing Factors. International Journal of Academic Research in Accounting Finance and Management Sciences, 13(1). https://doi.org/10.6007/ijarafms/v13-i1/16612
Hong, J., Lu, J., Hong, J., & Lu, J. (2016). Assessing the Effectiveness of Business Incubators in Fostering SMEs: Evidence from China. International Journal of Entrepreneurship and Innovation Management, 20(12), 45-60. https://doi.org/10.1504/IJEIM.2016.075298
Husin, M. A., & Ibrahim, M. D. (2014). The Role of Accounting Services and Impact on Small Medium Enterprises (SMEs) Performance in Manufacturing Sector from East Coast Region of Malaysia: A Conceptual Paper. Procedia-Social and Behavioral Sciences, 115, 54-67. https://doi.org/10.1016/j.sbspro.2014.02.415
Jimainal, M. N. H., Hassan, R. A., Kalimin, K. M., Ansar, R., Chekima, B., & Fook, L. M. (2022). The Effect of Business Incubator Graduation Policy towards the Performance of Entrepreneurs in the Early Start-Up Companies in Malaysia with the Moderating Effect of Risk-taking Propensity. Business and Economic Research, 12(3), 56. https://doi.org/10.5296/ber.v12i3.20094
Jimainal, M., Hassan, R., Kalimin, K., Ansar, R., Chekima, B., & Fook, L. (2022). The effect of business support from business incubator towards the performance of entrepreneurs in the early start-up companies in Malaysia with the moderating effect of risk-taking propensity. Journal of Entrepreneurship and Business Innovation, 9(2), 16. https://doi.org/10.5296/jebi.v9i2.20073
Mabhungu, I., & Van Der Poll, B. (2017). A Review of Critical Success Factors Which Drives the Performance of Micro, Small and Medium Enterprises. International Journal of Business and Management, 12(6), 151-164. https://doi.org/10.5539/ijbm.v12n6p151
McAdam, M., & McAdam, R. (2008). High Tech Start-Ups in University Science Park Incubators: The Relationship between the Start-Up’s Lifecycle Progression and Use of the Incubator’s Resources. Technovation, 28(5), 277–290.
Nordin, N. a. M. (2011). Factors Affecting Profitability of Women Entrepreneurs Business in Malaysia.http://books.google.ie/books?id=yQJTAQAACAAJ&dq=Factors+Affecting+Profitability+of+Women+Entrepreneurs+Business+in+Malaysia.+Annual+Summit+on+Business+and+Entrepreneurial+Studies+(ASBES+2011)+Proceeding,+972-985.&hl=&cd=1&source=gbs_api.
National Business Incubation Association (NBIA). (2007). Business Incubation FAQ. Retrieved from http://www.nbia.org/resource_center/bus_inc_facts/index.php
Pattanasak, P., Anantana, T., Paphawasit, B., & Wudhikarn, R. (2022). Critical Factors and Performance Measurement of Business Incubators: A Systematic Literature Review. Sustainability, 14(8), 4610. https://doi.org/10.3390/su14084610
Pena, I. (2004). Business Incubation Centers and New Firm Growth in the Basque Country. Small Business Economics, 22(3/4), 223-236. https://doi.org/10.1023/B:SBEJ.0000022221.03667.82
Pinto, J. C., & Rua, O. L. (2023). Incubators’ practices influence in the born global startup’s internationalization process. Journal of Open Innovation Technology Market and Complexity, 9(3), 100134. https://doi.org/10.1016/j.joitmc.2023.100134
Robinson, S., & Stubberud, H. A. (2014). Business Incubators: What Services Do Business Owners Really Use? International Journal of Entrepreneurship, 18, 29-39.
Rogova, E. (2014). The Effectiveness of Business Incubators as the Element of the Universities’ Spin-Off Strategy in Russia. International Journal of Technology Management and Sustainable Development, 13(3), 265-281. https://doi.org/10.1386/tmsd.13.3.265_1
Roumani, Y. F., Nwankpa, J. K., & Tanniru, M. (2019). Predicting firm failure in the software industry. Artificial Intelligence Review, 53(6), 4161–4182. https://doi.org/10.1007/s10462-019-09789-2
Saffar, M. A. (2007). Innovation and Entrepreneurship Policy Framework: The Malaysian Experience in Building Sustainable Incubation Industry (Movement). Asia Regional Workshop. Hanoi, Vietnam. pp. 3-6
Santoso, B. (2019). Week 7 Product Development. Retrieved from https://slideplayer.com/slide/14356382/
Schwartz, M., & Hornych, C. (2010). Cooperation patterns of incubator firms and the impact of incubator specialization: Empirical evidence from Germany. Technovation, 30(9–10), 485–495. https://doi.org/10.1016/j.technovation.2010.05.001
Shin, I. J. (2014). Loss prevention at the startup stage in process safety management: From distributed cognition perspective with an accident case study. Journal of Loss Prevention in the Process Industries, 27, 99–113. https://doi.org/10.1016/j.jlp.2013.11.003
Sidin, S. M., Zawawi, D., Yee, W. F., Busu, R., & Hamzah, Z. L. (2004). The Effects of Sex Role Orientation on Family Purchase Decision Making in Malaysia. Journal of Consumer Marketing, 21(6), 381–390. https://doi.org/10.1108/07363760410558654
SME Corp. Malaysia. (2022). Business Incubators. Retrieved from https://www.smecorp.gov.my/index.php/en/component/content/article/9uncategorised/383-star ting?highlight=WyJpbmN1YmF0b3IiXQ==&Itemid=763
Somsuk, N., & Laosirihongthong, T. (2014). A Fuzzy AHP to Prioritize Enabling Factors for Strategic Management of University Business Incubators: Resource-Based View. Technological Forecasting and Social Change, 85, 198-210. https://doi.org/10.1016/j.techfore.2013.08.007
Sun, X., & Cheng, Y. (2021). Sustainable efficiency evaluation of regional state-level technology business incubating service systems in China: A dynamic two-stage slacks-based measure approach. Journal of Cleaner Production, 279, 123688. https://doi.org/10.1016/j.jclepro.2020.123688
Theodoraki, C., Messeghem, K., & Audretsch, D. B. (2022). The Effectiveness of Incubators’ Co-Opetition Strategy in the Entrepreneurial Ecosystem: Empirical Evidence From France. IEEE Transactions on Engineering Management, 69(4), 1781–1794. https://doi.org/10.1109/tem.2020.3034476
Usama, K. M., & Yusoff, W. F. W. (2018). The Relationship between Entrepreneurs’ Financial Literacy and Business Performance among Entrepreneurs of Bauchi State Nigeria. Angewandte Chemie International Edition, 6(11), 951-952.
Valliere, D., & Nicholls-Nixon, C. L. (2024). From business incubator to crucible: a new perspective on entrepreneurial support. Journal of Small Business and Enterprise Development, 31(2), 395–417. https://doi.org/10.1108/jsbed-04-2023-0181
Yatim, P., Lin, N. S., Lam, H. L., & Choy, E. A. (2017). Overview of the key risks in the pioneering stage of the Malaysian biomass industry. Clean Technologies and Environmental Policy, 19(7), 1825–1839. https://doi.org/10.1007/s10098-017-1369-2
Yordanova, Z. (2023). ?penness While Incubating: How Do Incubators Apply Open Innovation Strategies for Supporting Startups? https://doi.org/10.2139/ssrn.4659617

Jimainal, M. N. H., Yusof, N. A., Kalimin, K. M., Lada, S., Chekima, B., Ansar, R., Lim, M. F., Hassan, R. A., Madli, F., & Yong, K. (2024). Strategic Support from Business Incubators: Unveiling their Impact on Entrepreneurial Success in Malaysia’s Start-Ups. International Journal of Academic Research in Business and Social Sciences, 14(9), 840–849.