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EXECUTIVE SUMMERY
A dynamic economy relies upon pervasive and successful business startups for its long-term economic growth. Research in small business incubation has been at its infant state. In particular, there is a growing importance in knowledge brokering and the market space for business ideas. This paper is a case study of virtual business incubation through knowledge brokering. A conceptual model of virtual business incubation is developed and further research issues are also discussed.
Keywords: Virtual business incubation, Knowledge brokering, Innovation, Performance
INTRODUCTION
The US economy relies upon pervasive and successful business startups for its economic transformation into an entrepreneurial economy (Drucker, 1985) and its long-term economic growth (e.g. Chandra & Fealey, 2009). Business incubation is a process in which a business incubator seeks to provide its incubatees (e.g. client- or tenant-companies) with facilities, services, and a supportive environment for start-ups during the early stages of a business' development and growth.
Business incubation research began in earnest in 1984. Chronologically, five primary research orientations are evident in the literature: incubator development, incubator configuration, incubatee development, incubator-incubation impact, and studies that theorize about business incubation (Hackett & Dilts, 2004).
Virtual business incubation is defined as an incubation program that provides incubation services electronically, with little or no face-to-face interaction. This term is also used to refer to any program that delivers incubation services to off-site clients (Colbert et al. 2010). There are three theoretical approaches to explaining virtual business incubation: middleman, enclave, and collective theories. Middleman theory describes a virtual incubation in which a minority group develops a brokering business in a specific industry. Enclave theory identifies the spatial positioning of middleman role in a specific cluster. Collective theory explains group-based business ventures in comparison with "lone-wolf" entrepreneurs (Hachett & Dilts, 2004).