IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i7p2727-d339031.html
   My bibliography  Save this article

The Impact of Social Networks on the Operating Efficiency of Chinese Technology Business Incubators

Author

Listed:
  • Chenghua Guan

    (School of Economics and Resource Management, Beijing Normal University, Beijing 100875, China)

  • Ye Fan

    (School of Economics and Resource Management, Beijing Normal University, Beijing 100875, China)

Abstract

Based on data reflecting 1202 technology business incubators (TBIs) in China from 2016 to 2018, this study measures the operating efficiency of TBIs in China through their use of the data envelopment analysis(DEA) and analyzes the impact of network tie strength, network size, and network centrality on the operating efficiency of TBIs through Tobit, while discussing differences among specific regions. The results demonstrate that the operating efficiency of TBIs in China is increasing. The average operating efficiency of TBIs in the eastern region has increased annually, reaching its highest levels in China in 2018. Moreover, the average operating efficiency of TBIs in the northeastern and western regions is low. Network size and network centrality have a significant positive impact on the overall operating efficiency of the TBI, and network tie strength has an inverted U-shape form of impact. The established time, size, nature, and reputation of TBIs have a significant positive impact on the operating efficiency of the TBI. In the western China, geographical location has a positive correlation with the operating efficiency of the TBI. However, in the northeastern region, the nature of the TBI has a negative correlation with the operating efficiency of the TBI. This is the first use of full sample data to study the operation efficiency of Chinese TBIs from the perspective of social networks.

Suggested Citation

  • Chenghua Guan & Ye Fan, 2020. "The Impact of Social Networks on the Operating Efficiency of Chinese Technology Business Incubators," Sustainability, MDPI, vol. 12(7), pages 1-23, March.
  • Handle: RePEc:gam:jsusta:v:12:y:2020:i:7:p:2727-:d:339031
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/7/2727/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/12/7/2727/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pallotti, Francesca & Lomi, Alessandro, 2011. "Network influence and organizational performance: The effects of tie strength and structural equivalence," European Management Journal, Elsevier, vol. 29(5), pages 389-403.
    2. Håkansson, Håkan & Snehota, Ivan, 2006. "No business is an island: The network concept of business strategy," Scandinavian Journal of Management, Elsevier, vol. 22(3), pages 256-270, September.
    3. Bajmoczy, Zoltan & Kosztopulosz, Andreasz & Imreh, Szabolcs, 2007. "Venture Capital And The Incubation Of Small Enterprises," GAZDÁLKODÁS: Scientific Journal on Agricultural Economics, Karoly Robert University College, vol. 51(Special E), pages 1-10.
    4. Joel A. C. Baum & Tony Calabrese & Brian S. Silverman, 2000. "Don't go it alone: alliance network composition and startups' performance in Canadian biotechnology," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 267-294, March.
    5. 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.
    6. Barbero, José L. & Casillas, José C. & Ramos, Alicia & Guitar, Susana, 2012. "Revisiting incubation performance," Technological Forecasting and Social Change, Elsevier, vol. 79(5), pages 888-902.
    7. Stam, Wouter & Arzlanian, Souren & Elfring, Tom, 2014. "Social capital of entrepreneurs and small firm performance: A meta-analysis of contextual and methodological moderators," Journal of Business Venturing, Elsevier, vol. 29(1), pages 152-173.
    8. Sarfraz Mian & Wadid Lamine & Alain Fayolle, 2016. "Technology Business Incubation: An overview of the state of knowledge," Post-Print hal-02014389, HAL.
    9. Ajay Mehra & Andrea L. Dixon & Daniel J. Brass & Bruce Robertson, 2006. "The Social Network Ties of Group Leaders: Implications for Group Performance and Leader Reputation," Organization Science, INFORMS, vol. 17(1), pages 64-79, February.
    10. Colombo, Massimo G. & Delmastro, Marco, 2002. "How effective are technology incubators?: Evidence from Italy," Research Policy, Elsevier, vol. 31(7), pages 1103-1122, September.
    11. Mian, Sarfraz & Lamine, Wadid & Fayolle, Alain, 2016. "Technology Business Incubation: An overview of the state of knowledge," Technovation, Elsevier, vol. 50, pages 1-12.
    12. Lois Peters & Mark Rice & Malavika Sundararajan, 2004. "The Role of Incubators in the Entrepreneurial Process," The Journal of Technology Transfer, Springer, vol. 29(1), pages 83-91, January.
    13. Autio, Erkko & Rannikko, Heikki, 2016. "Retaining winners: Can policy boost high-growth entrepreneurship?," Research Policy, Elsevier, vol. 45(1), pages 42-55.
    14. Danny Soetanto & Sarah Jack, 2013. "Business incubators and the networks of technology-based firms," The Journal of Technology Transfer, Springer, vol. 38(4), pages 432-453, August.
    15. Tone, Kaoru & Tsutsui, Miki, 2009. "Network DEA: A slacks-based measure approach," European Journal of Operational Research, Elsevier, vol. 197(1), pages 243-252, August.
    16. Bhagavatula, Suresh & Elfring, Tom & van Tilburg, Aad & van de Bunt, Gerhard G., 2010. "How social and human capital influence opportunity recognition and resource mobilization in India's handloom industry," Journal of Business Venturing, Elsevier, vol. 25(3), pages 245-260, May.
    17. Bengt Johannissson, 1998. "Personal networks in emerging knowledge-based firms: spatial and functional patterns," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 10(4), pages 297-312, January.
    18. Ray Reagans, 2011. "Close Encounters: Analyzing How Social Similarity and Propinquity Contribute to Strong Network Connections," Organization Science, INFORMS, vol. 22(4), pages 835-849, August.
    19. Sarfraz Mian & Wadid Lamine & Alain Fayolle, 2016. "Technology Business Incubation : An overview of the state of knowledge," Post-Print hal-02313371, HAL.
    20. repec:bla:jfinan:v:59:y:2004:i:4:p:1805-1844 is not listed on IDEAS
    21. Lukeš, Martin & Longo, Maria Cristina & Zouhar, Jan, 2019. "Do business incubators really enhance entrepreneurial growth? Evidence from a large sample of innovative Italian start-ups," Technovation, Elsevier, vol. 82, pages 25-34.
    22. I. Pena, 2004. "Business Incubation Centers and New Firm Growth in the Basque Country," Small Business Economics, Springer, vol. 22(3_4), pages 223-236, April.
    23. Vásquez-Urriago, Ángela Rocío & Barge-Gil, Andrés & Modrego Rico, Aurelia, 2016. "Science and Technology Parks and cooperation for innovation: Empirical evidence from Spain," Research Policy, Elsevier, vol. 45(1), pages 137-147.
    24. Scott A. Boorman, 1975. "A Combinatorial Optimization Model for Transmission of Job Information through Contact Networks," Bell Journal of Economics, The RAND Corporation, vol. 6(1), pages 216-249, Spring.
    25. Klein, Benjamin & Leffler, Keith B, 1981. "The Role of Market Forces in Assuring Contractual Performance," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 615-641, August.
    26. Birley, Sue, 1985. "The role of networks in the entrepreneurial process," Journal of Business Venturing, Elsevier, vol. 1(1), pages 107-117.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Photchanaphisut Pattanasak & Tanyanuparb Anantana & Boontarika Paphawasit & Ratapol Wudhikarn, 2022. "Critical Factors and Performance Measurement of Business Incubators: A Systematic Literature Review," Sustainability, MDPI, vol. 14(8), pages 1-39, April.
    2. Shu-Chuan Chen & Da-Sheng Lee & Chien-Yi Huang, 2021. "Evaluating the Sustainable Operating Performance of Electronics Industry Groups: Taiwanese Firms in Mainland China," Sustainability, MDPI, vol. 13(21), pages 1-28, October.
    3. Yi Zheng & Min Luo, 2023. "Enhancing Operating Efficiency in China’s High-End Equipment Manufacturing Industry: Insights from Listed Enterprises," Sustainability, MDPI, vol. 15(11), pages 1-18, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lukeš, Martin & Longo, Maria Cristina & Zouhar, Jan, 2019. "Do business incubators really enhance entrepreneurial growth? Evidence from a large sample of innovative Italian start-ups," Technovation, Elsevier, vol. 82, pages 25-34.
    2. Margarida Madaleno & Max Nathan & Henry Overman & Sevrin Waights, 2022. "Incubators, accelerators and urban economic development," Urban Studies, Urban Studies Journal Limited, vol. 59(2), pages 281-300, February.
    3. Grilli, Luca & Marzano, Riccardo, 2023. "Bridges over troubled water: Incubators and start-ups’ alliances," Technovation, Elsevier, vol. 121(C).
    4. Sansone, Giuliano & Andreotti, Pietro & Colombelli, Alessandra & Landoni, Paolo, 2020. "Are social incubators different from other incubators? Evidence from Italy," Technological Forecasting and Social Change, Elsevier, vol. 158(C).
    5. Han, Shaojie & Su, Jingqin & Lyu, Yibo & Liu, Qing, 2022. "How do business incubators govern incubation relationships with different new ventures?," Technovation, Elsevier, vol. 116(C).
    6. J. Piet Hausberg & Sabrina Korreck, 2020. "Business incubators and accelerators: a co-citation analysis-based, systematic literature review," The Journal of Technology Transfer, Springer, vol. 45(1), pages 151-176, February.
    7. Chan, Yolande E. & Krishnamurthy, Rashmi & Sadreddin, Arman, 2022. "Digitally-enabled university incubation processes," Technovation, Elsevier, vol. 118(C).
    8. Bibeau, Jean & Meilleur, Roxane & St-Jean, Étienne, 2024. "To formalize, or not to formalize, business incubators’ networks: That is not the question," Technovation, Elsevier, vol. 130(C).
    9. Del Sarto, Nicola & Isabelle, Diane A. & Di Minin, Alberto, 2020. "The role of accelerators in firm survival: An fsQCA analysis of Italian startups," Technovation, Elsevier, vol. 90.
    10. Chenghua Guan & Shengxue Jin, 2023. "Does the Type of Funding Affect Innovation? Evidence from Incubators in China," Sustainability, MDPI, vol. 15(3), pages 1-19, January.
    11. Laura Lecluyse & Mirjam Knockaert & André Spithoven, 2019. "The contribution of science parks: a literature review and future research agenda," The Journal of Technology Transfer, Springer, vol. 44(2), pages 559-595, April.
    12. Kameliya Deyanova & Nataliia Brehmer & Artur Lapidus & Victor Tiberius & Steve Walsh, 2022. "Hatching start-ups for sustainable growth: a bibliometric review on business incubators," Review of Managerial Science, Springer, vol. 16(7), pages 2083-2109, October.
    13. van Weele, Marijn & van Rijnsoever, Frank J. & Nauta, Frans, 2017. "You can't always get what you want: How entrepreneur's perceived resource needs affect the incubator's assertiveness," Technovation, Elsevier, vol. 59(C), pages 18-33.
    14. Radosław Wolniak & Michalene Eva Grebski & Bożena Skotnicka-Zasadzień, 2019. "Comparative Analysis of the Level of Satisfaction with the Services Received at the Business Incubators (Hazleton, PA, USA and Gliwice, Poland)," Sustainability, MDPI, vol. 11(10), pages 1-22, May.
    15. Brian J. Bergman & Jeffery S. McMullen, 2022. "Helping Entrepreneurs Help Themselves: A Review and Relational Research Agenda on Entrepreneurial Support Organizations," Entrepreneurship Theory and Practice, , vol. 46(3), pages 688-728, May.
    16. Son, Hosung & Chung, Yanghon & Yoon, Sangpil, 2022. "How can university technology holding companies bridge the Valley of Death? Evidence from Korea," Technovation, Elsevier, vol. 109(C).
    17. Isabel Diez-Vial & Angeles Montoro-Sanchez, 2017. "Research evolution in science parks and incubators: foundations and new trends," Scientometrics, Springer;Akadémiai Kiadó, vol. 110(3), pages 1243-1272, March.
    18. Silvia Sedita & Roberto Grandinetti, 2014. "Relationships at work in a networked business incubator: the case of H-Farm," "Marco Fanno" Working Papers 0190, Dipartimento di Scienze Economiche "Marco Fanno".
    19. Manhart, Niklas, 2022. "The Mission Comes First: Exploring the Mechanisms of Organizational Sponsorship for the Acceleration of Social Start-Ups," Junior Management Science (JUMS), Junior Management Science e. V., vol. 7(2), pages 289-337.
    20. Alaassar, Ahmad & Mention, Anne-Laure & Aas, Tor Helge, 2021. "Exploring a new incubation model for FinTechs: Regulatory sandboxes," Technovation, Elsevier, vol. 103(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:7:p:2727-:d:339031. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.