IDEAS home Printed from https://ideas.repec.org/a/kap/jtecht/v29y2004i1p41-54.html
   My bibliography  Save this article

A Real Options-Driven Theory of Business Incubation

Author

Listed:
  • Sean M. Hackett
  • David M. Dilts

Abstract

This article employs real options-theoretic reasoning to develop a theory of business incubation. This theory seeks to predict and explain how business incubators and the process of business incubation increase the likelihood that new ventures will survive the early stages of development. It conceptualizes the incubator as an entrepreneurial firm that sources and macro-manages the innovation process within emerging organizations, infusing these organizations with resources at various developmental stage-gates while containing the cost of their potential failure. The incubator is the unit of analysis while incubation outcomes--measured in terms of incubatee growth and financial performance at the time of incubator exit--provide indicators of success. Our model of the incubation process and specification of the range of possible incubation outcomes offer implications for managerial practice and policy-making vis-ý-vis incubator management and good entrepreneurial failure.

Suggested Citation

  • Sean M. Hackett & David M. Dilts, 2004. "A Real Options-Driven Theory of Business Incubation," The Journal of Technology Transfer, Springer, vol. 29(1), pages 41-54, January.
    • Handle: RePEc:kap:jtecht:v:29:y:2004:i:1:p:41-54
    as

    Download full text from publisher

    File URL: http://journals.kluweronline.com/issn/0892-9912/contents
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    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:kap:jtecht:v:29:y:2004:i:1:p:41-54. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.