BUSINESS PLANNING, PRODUCT DEVELOPMENT AND LOCALIZATION - A STUDY OF 131 INCUBATEES LOCATED ON 16 INCUBATORS IN SWEDEN
Book chapter, 2012
The research question in this study specifically relates to the potential for performance associated with business plans and market development (as it affects the firm), product development (firm dimension) and localization (incubator dimension). The developed analytical model examines the effects of these different dimensions on small firm performance (as seen via capital resources, profit margin and level of sales). This study builds upon data collected from a survey in 2005 of 16 incubators in Sweden. The survey was sent out to the managers of the new technology-based firms (incubatees). Thus, out of the 133 answers (response rate 69%) we were able to use 131 small new technology-based firms localized at 16 incubators in the statistical analysis. Moreover, from a firm’s perspective the incubator provides an opportunity of gaining access to such as technology together with the creation of those systems important for running its business activities and improving performance. Factor analysis was used to divide the variables into the five latent variables: business plans and prognoses, product development, region and proximity, university and incubator linkage, and transportation and facilities. However, we found a very limited number of connections between firm performance (capital resources, profit margin and level of sales) and these 5 selected variables. Regarding the financing situation, we note that the only statistical connection occurs between the financial resources over the past three years and the [latent variable] business plans and prognoses. There was no overall statistical support for connections between sales level, profit margin and the five latent variables.
New technology-based firms