Development of an Incubator Performance Model Based on User Perceptions: A PLS-SEM Approach

The technology business incubator is one of the most important infrastructures and plays a very strategic role in the formation of an innovation ecosystem. Good governance of an incubator will result in competitive start-up companies. Many factors can affect the capability of the incubator to perform this role and also to provide good services in developing a business based on innovation. The purpose of this study is to develop a model that can be used to measure the performance of an incubator business technology based on user perceptions. In this study, these factors have been defined namely aspect 7S (space, share, support, service, skills, seed capital, and synergy) to support the business start-up development and the performance of the incubator itself in providing these services. These factors become a reference to develop the incubator performance model by using the PLS-SEM approach. 13 initial hypotheses were tested based on the correlation of each of these factors. From the test results based on 93 respondents, who are involved in the technology business incubator services, it was found that 5 hypotheses were rejected, namely space, skill, seed capital, and synergy factors which has a positive correlation but has no significant value to the incubator performance. Besides, it is also founded that the support factor also has a positive correlation but has no significant value to the business start-up development.