A Moderating Role of Absorptive Capacity within Incubation Support

This paper investigates the impact of different supports by business incubators on the performances of the New Technology-Based Firms (NTBFs). In addition, we attempt to understand to what extent the capabilities of the NTBFs moderate the impacts. Using the sample of NTBFs located in the university-based incubators in the Netherlands and Germany, we analyze the impact of knowledge development and dissemination supportive activities by business incubators on the performance of the NTBFs. Meanwhile, we investigate the moderating impact of NTBFs' capability (i.e., the absorptive capacity) on the relations between the supports by incubators and the NTBF's performance. Our empirical results show that (1) knowledge development and dissemination support by incubators have a positive impact on the performances of the NTBFs, (2) absorptive capacity as an NTBFs' learning capability, moderates the relationship between knowledge development and dissemination and the performance of the NTBFs. Analyzing the interactions between the supports by business incubators, NTBFs' capabilities and the performance of the NTBFs provide a rather deep insight into the effectiveness of business incubators. We also recommend new insights as a means to improve the performances of their NTBFs.