The Effect of Business Incubators External Networking on Business Performance: The Mediating Role of Business Training and Mentoring
DOI:
https://doi.org/10.51137/wrp.ijarbm.570Keywords:
Business Incubators, Business Performance, Business Training, External Network, Mentoring and CoachingAbstract
Business incubators external network (EN) have gained a critical role in improving business performance (BP). Previous research, however, indicated difficulties on the impact of business incubators EN on BP due to the level of company competency and operating length of the enterprises. The discussion on the contribution of these themes has shown varied results, necessitating further research. As a result, the purpose of this study is to investigate the effect of business incubators EN on BP at various levels of training, mentoring and coaching, and operating period. The study used a quantitative research approach and an explanatory design to accomplish this. Data were gathered from 264 respondents chosen from a total population of 749 incubated entrepreneurs in the Limpopo province. The data was then analysed using Hayes conditional process analysis. The study's findings suggested that business incubators EN can have a considerable impact on business success both directly and indirectly through mentoring and coaching. Surprisingly, the study discovered that business training did not mitigate the effect of EN on BP. According to the survey, incubated enterprises should engage in external networking and seek mentoring and coaching services.
References
Adudu, A. C., Asenge, E. L., & Dewua, P. (2022). Effect of Mentoring on the Growth of Selected Small Scale Businesses in Makurdi Metropolis, Benue State-Nigeria. International Journal of Innovation in Engineering, 2(2), 1–12.
Anderson B. S. and Eshima Y. (2013) ‘The Influence of Firm Age and Intangible Resources on theRelationship Between Entrepreneurial Orientation and Firm Growth Among Japanese SMEs’,Journal of Business Venturing 28(3): 413–429.
Andersson, U., Forsgren, M., & Holm, U. (2002). The strategic impact of external networks: Subsidiary performance and competence development in the multinational corporation. Strategic Management Journal, 23(11), 979–996. https://doi.org/10.1002/smj.267
Barba Aragón, M. I., Jiménez, D., & Sanz Valle, R. (2014). Training and performance: The mediating role of organizational learning. BRQ Business Research Quarterly, 17(3), 161–173. https://doi.org/10.1016/j.cede.2013.05.003
Blackburn, R.A., Hart, M. & Wainwright, T. 2013. Small business performance: business, strategy and owner-manager characteristics. Journal of Small Business and Enterprise Development, 201(1):8-27.
Børing, P. (2020). Effect of Firms’ Age on Their Use of Highly Skilled Workers. Labour, 34(2), 137–153. https://doi.org/10.1111/labr.12173
Bosma, N., Praag, M. V., Thurik, R. and Wit G. D. (2004), “The Value of Human and Social Capital Investments for the Business Performance of Startups”, Small Business Economics, Vol. 23, pp. 227-236.
Cai, L., Hughes, M. & Yin, M. 2014. The relationship between resource acquisition methods and firm performance in Chinese new ventures: the intermediate effect of learner capability. Journal of Small Business Management, 52(3):365:389.
Chartered Institute of Management Accountants (2008) Mentoring and coaching, CIMA, London. Available: http://www.cimaglobal.com/Documents/ImportedDocuments/cid_tg_mentoring_coaching_Aug08.pdf.pdf
Chung, Y., & Jackson, S. E. (2013). The Internal and External Networks of Knowledge-Intensive Teams: The Role of Task Routineness. Journal of Management, 39(2), 442–468. https://doi.org/10.1177/0149206310394186
De Klerk, S. and Kroon, J. (2007), “Networking in South African Businesses”, Management Decision, Vol. 45, No. 1, pp. 89-103.
Deanna, R., Merkle, B. G., Chun, K. P., Navarro-Rosenblatt, D., Baxter, I., Oleas, N., Bortolus, A., Geesink, P., Diele-Viegas, L., Aschero, V., de Leone, M. J., Oliferuk, S., Zuo, R., Cosacov, A., Grossi, M., Knapp, S., Lopez-Mendez, A., Welchen, E., Ribone, P., & Auge, G. (2022). Community voices: the importance of diverse networks in academic mentoring. Nature Communications, 13(1).
Efthalia D., Goudis A., Skuras A. and Tsegenidi K. (2003). 43nd European Regional Science Association Congress “P, 1–25.
Eveleens, C. P., van Rijnsoever, F. J., & Niesten, E. M. M. I. (2017). How network-based incubation helps start-up performance: A systematic review against the background of management theories. Journal of Technology Transfer, 42(3), 676–713
Havnes P.A., Senneseth K. (2001), A Panel Study of Firm Growth among SMEs in Networks, Small Business Economics, vol.16, pp.293-302
Hayter, C. S. (2013). Conceptualizing knowledge-based entrepreneurship networks: Perspectives fromthe literature. Small Business Economics, 41(4), 899–911.
Hernández-Perlines, F., Moreno-García, J., & Yáñez-Araque, B. (2016). Training and business performance: the mediating role of absorptive capacities. SpringerPlus, 5(1). https://doi.org/10.1186/s40064-016-3752-6
Herrington, M., Kew, J. & Kew, P. 2009. Tracking entrepreneurship in South Africa: a GEM perspective. Cape Town: UCT Centre for Innovation and Entrepreneurship, Graduate School of Business.
Idris, B., Saridakis, G., & Johnstone, S. (2020). Training and performance in SMEs: Empirical evidence from large-scale data from the UK. Journal of Small Business Management, 00(00), 1–33. https://doi.org/10.1080/00472778.2020.1816431
Jafari-Sadeghi V., Dutta D.K., Ferraris A., Del Giudice M. (2020). Internationalisation business processes in an under-supported policy contexts: Evidence from Italian SMEs. Business Process Management Journal, 26 (5) (2020), pp. 1055-1074
Jorgenson, S.B. (2014). Business incubators: a study of the entrepreneurs inside the growth factories. Unpublished doctoral thesis. Copenhagen: Roskilde University.
Kempster, S., & Cope, J. (2010). Learning to lead in the entrepreneurial context. International Journal of Entrepreneurial Behavior & Research, 16(1), 5–34.
Kücher, A., Mayr, S., Mitter, C., Duller, C., & Feldbauer-Durstmüller, B. (2020). Firm age dynamics and causes of corporate bankruptcy: age dependent explanations for business failure. Review of Managerial Science, 14(3), 633–661. https://doi.org/10.1007/s11846-018-0303-2
Kunaka C. and Moos MN. (2019). Evaluating mentoring outcomes from the perspective of entrepreneurs and small business owners. Southern African Journal of Entrepreneurship and Small Business Management 11(1), a214
Ladzani, W. 2010. Historical perspective of small business development initiatives in South Africa with special reference to Limpopo Province. Problems and Perspective in Management, 8(3):68-79.
Lechner, C. and Dowling, M. (2003) Firm Networks: External relationships as Sources for the Growth and Competitiveness of Enterpreneurial Firms. Entrepreneurship & Regional Development, 1-26.
Lee, C., Lee, K., & Pennings, J. M. (2001). Internal capabilities, external networks, and performance: A study on technology-based ventures. Strategic Management Journal, 22(6–7), 615–640. https://doi.org/10.1002/smj.181
Lee, D. H., Dedahanov, A. T., & Rhee, J. (2015). Moderating role of external networks and mediating effect of innovation performance on the relationship between technology orientation and firm performance. Asian Journal of Technology Innovation, 23(3), 321–334.
Lekovic, B. & Maric, S. 2015. Measures of small business success/performance: importance, reliability and usability. Industrija, 43(2):7-26.
Liu, R. (2015). Management learning in business networks: The process and the effects. Management Learning, 46(3), 337–360. https://doi.org/10.1177/1350507614537019
Lofsten, H. 2010. Critical incubator dimensions for small firm performance: a study of new technology-based firms localized in 16 incubators. Journal of Business Innovation and Research, 4(3):256-263.
Moric Milovanovic, B., Primorac, D., & Kozina, G. (2020). The impact of strategic networking on business performance of manufacturing SMEs operating in a predominantly service based economy. Interdisciplinary Description of Complex Systems, 18(2-B), 194–207. https://doi.org/10.7906/indecs.18.2.9
Neupane, R. (2015). Effects of Coaching and Mentoring on Employee Performance in the UK Hotel Industry. International Journal of Social Sciences and Management, 2(2), 123–138. https://doi.org/10.3126/ijssm.v2i2.12323
Nieman, G. & Nieuwenhuizen, C. (2015). Entrepreneurship: a South African perspective, 3rd ed. Pretoria: Van Schaik.
Okubena, O. 2014. An evaluation of business skills and training needs within selected small manufacturing businesses in the Vanderbijl park area of Gauteng province, South Africa. Journal of Hospitality, Tourism and Leisure, 3(1):1-16
Pompa, C. 2013. Literature review on the impact of business incubation, mentoring, investment and training on start-up companies. Available from: https://assets.publishing.service.gov.uk/media/57a08a21e5274a27b2000437/Literature_Review_on_the_Impact_of_Incubation_Investment_Training20.pdf
Radipere, S., & Dhliwayo, S. (2014). The role of age and business size on small business performance in the South African small enterprise sector. Problems and Perspectives in Management, 12(4), 7–12.
Rasmussen, E., Mosey, S., & Wright, M. (2015). The transformation of network ties to develop entrepreneurial competencies for university spin-offs. Entrepreneurship and Regional Development, 27(7–8), 430–457.
Redondo-Carretero, M. & Camarero-Izquierdo, C. (2017). Relationships between entrepreneurs in business incubators: an exploratory study. Journal of Business-to-Business Marketing, 24(1): 57-74.
Rossi, M. (2016). The impact of age on firm performance: A literature review. Corporate Ownership and Control, 13(2CONT1), 217–223. https://doi.org/10.22495/cocv13i2c1p3
Sa, C. & Lee, H. 2012. Science, business, and innovation: understanding networks in technology-based incubators. R & D Management, 42(3):243-253.
Saleh, A. S., & Harvie, C. (2010). The Impact of Networking on Business Performance: A Case Study of Malaysian SMEs. Academy of Taiwan Business Management Review, 6(4), 74–85.
Shah, M. H., Othman, A. R. bin, & Mansor, M. N. bin. (2016). Mentoring and Organizational Performance: A review of effects of Mentoring on Small and Medium enterprises. Journal of Business and Social Review in Emerging Economies, 2(2), 159–165.
Sijde P. and Weijman G. (2013). Benefits and impact of mentoring for entrepreneurs: the entrepreneur’s perspective. International Journal of Human Resource Studies 3, 194-204.
Singer J, Helferich J (2008) Supporting R&D support groups. Research – Technology Management 51(1): 49–57.
Singh, R., Chandrashekar, D., Subrahmanya Mungila Hillemane, B., Sukumar, A., & Jafari-Sadeghi, V. (2022). Network cooperation and economic performance of SMEs: Direct and mediating impacts of innovation and internationalisation. Journal of Business Research, 148(May), 116–130.
Soetanto, D., & Jack, S. L. (2018). Slack resources, exploratory and exploitative innovation and the performance of small technology-based firms at incubators. Journal of Technology Transfer, 43(5), 1213–1231.
Soetanto, D.P. & Jack, S.L. (2011). Networks and networking activities of innovative firms in incubators: an exploratory study. Entrepreneurship and Innovation, 12(2):127-136.
Steffens, P., Davidsson, P. & Fitzsimmons, J. 2009. Performance configurations over time: implications for growth – and profit – oriented strategies. Entrepreneurship Theory and Practice, 33:125-149.
Su, Z., Xie, E. & Wang, D. 2015. Entrepreneurial orientation, managerial networking, and new venture performance. Journal of Small Business Management, 53(1):228-248.
Sungur, O. (2015). Business incubators, networking and firm survival: Evidence from Turkey. International Journal of Business and Social Science, 6(5), 136–149.
Tan, J., Zhang, H., & Wang, L. (2015). Network closure or structural hole? The conditioning effects of net-work-level social capital on innovation performance. Entrepreneurship and Regional Development, 39(5), 1189–1212.
Tembe, F. 2018. Business incubators and SMMEs performance in South Africa. Unpublished Master of Management dissertation. Johannesburg: University of Witwatersrand.
Thiel, M. (2021). Employee Social Network Strategies: Implications for Firm Strategies and Performance in Future Organizations. Frontiers in Psychology, 12(December), 1–15. https://doi.org/10.3389/fpsyg.2021.726606
Wei, Z., Zhao, J. & Zhang, C. 2014. Organizational ambidexterity, market orientation, and firm performance. Journal of Engineering Technology Management, 33:134-153.
Wiklund, J. & Shepherd, D. 2005. Entrepreneurial orientation and small business performance: a configurational approach. Journal of Business Venturing, 20(1):71-79.
Wincent. (2005). Personal Traits of CEO, inter-firm networking and entrepreneurship in their firm: Investigating strategic SME network participants. Journal of Development Entrepreneurship, 10(3), 14.
Wu, W., Wang, H., & Wu, Y. J. (2021). Internal and external networks, and incubatees’ performance in dynamic environments: entrepreneurial learning’s mediating effect. Journal of Technology Transfer, 46(6), 1707–1733. https://doi.org/10.1007/s10961-020-09790-w
Xu, H., Yu, H., Acemoglu, D., Bernard, A., Bloom, N., Breza, E., Chandrasekhar, A., Golub, B., Jackson, M., Johnson, T., Karlan, D., Katz, L., Kortum, S., Lam, D., Olken, B., Pande, R., Rosenweig, M., Shapiro, M., Thomas, D., … Woodruff, C. (2020). Interfirm relationships and business performance ∗ j. 2018, 1229–1282. https://doi.org/10.1093/qje/qjx049.Advance
Zucchella A. (2021). International entrepreneurship and the internationalization phenomenon: Taking stock, looking ahead International Business Review, 101800 (2021)
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Matome Simon Masipa, Reginald Mulalo Ndwamai (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
