An analysis of the match between supply and demand of business incubator services: the case of IT incubation in Armenia

Grigorian, Armen (2010) An analysis of the match between supply and demand of business incubator services: the case of IT incubation in Armenia.

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Abstract:With the purpose of enhancing economic development and growth, many governments and policy makers adopted business incubation programs aimed at promoting economic growth and job creation. To further enhance the development of the IT industry, the government of Armenia also adopted a new industry development strategy emphasizing business incubation as a development tool. Business incubators offer their tenants services mainly along three dimensions: infrastructure, business support and access to networks. The value of these services is seldom analyzed although researchers emphasize the critical importance of a match between the need and provision of business incubator support services. The purpose of this study was to evaluate the perceived value of typical business incubator services and analyze the extent to which the offered services cover the needs of IT companies in Armenia. The study therefore involved both incubated and non-incubated companies. Non-incubated companies were studied on their need for business incubator services and the perceived value of such services for their future development. Analysis of incubated companies on the other hand concerned the need of these companies for business incubator services and the extent to which the currently received services were matching their needs. The research had a two stage procedure: first, interviews were conducted with pivotal people familiar with business incubation in Armenia; second, an electronic questionnaire survey was sent to the entire Armenian IT population. The study results illustrate a weaker need for business incubator services than initially thought. Nevertheless, many non-incubated companies need business incubator services but are currently not served. Non-incubated companies find business incubator services to be moderately valuable for their future development, however, this value increases as their needs increase. Incubated companies on the other hand are generally satisfied with the services they enjoy but the satisfaction level decreases as their needs increase. The results of the study consequently point towards a gap between the need for business incubator services and the services actually offered by the Armenian business incubation system. The findings therefore suggest that a more extensive service provision is needed for creation of a better match between the offered and needed business incubator services. New Science Parks and Business Incubation Centers with a wider scope and more varying strategic objectives will benefit the match between the offer and need for business incubator services.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/60175
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