The Mediating Effect of Entrepreneurial Self-Efficacy between Business Incubator Funding and Business Success: A Conceptual Paper
Keywords:
Business Incubator; Funding; Entrepreneurial Self-Efficacy; Business Success
Abstract
Business incubation plays a crucial role in sustaining business success in both emerging and developing countries. Business incubators help businesses in developing countries effectively use innovation to reduce poverty and sustain social and economic development and growth. This conceptual paper focuses on the effect of funding in business incubator practices on business success in the context of Palestine. Additionally, this study strives to establish the mediating effect of entrepreneurial self-efficacy on the relationship between funding and business success. This study will apply a quantitative approach to collect data from businesses in Palestine. The Partial Least Squares (PLS) method will be used to analyze the data. This study adopted a resource-based view (RBV), which claims that resources, skills, and capabilities are valuable tangible and intangible resources that lead to business success. If empirically supported, the proposed framework may provide effective assistance for business incubators, entrepreneurs, business owners, and managers in developing countries such as Palestine. Therefore, the results of this study will help provide academic research, future research, government, and related agencies with guiding principles and information.
Downloads
Download data is not yet available.
References
Aboagye-Da-Costa, D. P. (2012). Internet Quality in Southern Ghana for Businesses Vendor: Viope Solutions Oy. Bachelor Thesis. Leppävaara, Finland: Laurea University of Applied Sciences.
Akinruwa, T. E., Awolusi, O. D. & Ibojo, B. O. (2013). Determinants of small and medium enterprises (SMEs) performance in Ekiti State, Nigeria: A business survey approach. European journal of humanities and social sciences, 27(1), 1397-1413.
Al-Damen, R. A. (2021). Business incubator and its impact on business success: A case study of Jordan Enterprise Development Corporation (JEDCO). J. Mgmt. & Sustainability, 11, 35.
Atherton, A. (2012). Cases of start?up financing: An analysis of new venture capitalization structures and patterns. International Journal of Entrepreneurial Behavior & Research, 18(1), 28-47.
Bandura, A. (1977). Self-efficacy: toward a unifying theory of behavioral change. Psychological review, 84(2), 191.
Baria, A. & Arshadb, D. (2020). The Mediating Role of Improvisation Behavior on Proclivity for Entrepreneurial Self-Efficacy, Social Networking, and Women-Owned SME Business Success in Malaysia. International Journal of Innovation, Creativity and Change, 13(5), 1297-1314.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
Batra, G., Kaufmann, D. & Stone, A. H. (2003). Investment climate around the world: Voices of the Firms from the World Business Environment Survey. World Bank Publications.
Bird, B. (1988). Implementing entrepreneurial ideas: The case for intention. Academy of Management Review, 13(3), 442-453.
Boyd, N. G. & Vozikis, G. S. (1994). The influence of self-efficacy on the development of entrepreneurial intentions and actions. Entrepreneurship theory and practice, 18(4), 63-77.
Cabrera, E. M. & Mauricio, D. (2017). Factors affecting the success of women’s entrepreneurship: a review of literature. International Journal of Gender and Entrepreneurship, 9(1), 60–77.
Caglayan, M. & Demir, F. (2014). Firm productivity, exchange rate movements, sources of finance, and export orientation. World Development, 54, 204-219.
Campo, J. L. M. (2011). Analysis of the influence of self-efficacy on entrepreneurial intentions. Prospectiva, 9(2), 14-21.
Carter, N. M., Gartner, W. B., Shaver, K. G. & Gatewood, E. J. (2003). The career reasons of nascent entrepreneurs. Journal of Business Venturing, 18(1), 13-39.
Cardon, M. S. (2010). Entrepreneurial self?efficacy and business start?up: developing a multi?dimensional definition. International journal of entrepreneurial behavior & research, 16(4), 329-348.
Dwivedi, N. T. & Mishra, T. (2013). Women-empowerment through women entrepreneurship: A study of Faizabad zone of Uttar-Pradesh. Voice of Research, 2(2), 50–55.
Fitzsimmons, J. R. & Douglas, E. J. (2011). Interaction between feasibility and desirability in the formation of entrepreneurial intentions. Journal of Business Venturing, 26(4), 431-440.
Franco, M., Haase, H. & Pereira, A. (2016). Empirical study about the role of social networks in SME performance. Journal of Systems and Information Technology, 18(4), 383-403.
French, A. M., Shim, J. P., Otondo, R. F. & Templeton, G. T. (2018). An empirical study evaluating social networking continuance and success. Journal of Computer Information Systems, 58(4), 353-362.
Genty, K., Idris, K., Wahizat, N., Wahat, A. & Kadir, S. A. (2015). Demographic factors and entrepreneurial success?: A conceptual review. International Journal of Management Sciences, 6(8), 366–374. 7
Hatak, I. & Zhou, H. (2019). Health as human capital in entrepreneurship: Individual, extension, and substitution effects on entrepreneurial success. Entrepreneurship Theory and Practice, 1–25. https://doi.org/10.1177/1042258719867559
Kiran, R. & Bose, S. C. (2020). Stimulating business incubation performance: Role of networking, university linkage and facilities. Technology Analysis & Strategic Management, 32(12), 1407- 1421.
Krishnan, K., Nandy, D. & Puri, M. (2012). Increased access to financing and firm productivity. Boston, MA: Boston Research Data Center (RDC) of the US Census Bureau.
Lerner, M. & Almor, T. (2002). Relationships among strategic capabilities and the performance of women?owned small ventures. Journal of Small Business Management, 40(2), 109–125.
Lo, M. C., Wang, Y. C., Rinen, C. & Wah, J. (2016). The critical success factors for the organizational performance of SMEs in Malaysia?: a partial least squares approach. Revista Brasileira de Gestão de Negócios Review of Business Management, 18(61), 370–391. https://doi.org/10.7819/rbgn.v18i61.3058
MAS. (2019). Innovation and digital economy in Palestine: Challenges and Opportunities. Retrieved from https://www.mas.ps
Masuo, D., Fong, G., Yanagida, J. & Cabal, C. (2001). Factors associated with business and family success: A comparison of single manager and dual manager family business households. Journal of Family and Economic Issues, 22, 55-73.
Mei, H., Ma, Z., Jiao, S., Chen, X., Lv, X. & Zhan, Z. (2017). The sustainable personality in entrepreneurship: the relationship between Big Six personality, entrepreneurial self-efficacy, and entrepreneurial intention in the Chinese context. Sustainability, 9(9), 1649.
Miao, C., Qian, S. & Ma, D. (2017). The relationship between entrepreneurial self?efficacy and firm performance: a meta?analysis of main and moderator effects. Journal of Small Business Management, 55(1), 87-107.
Morrar, R., Abdeljawad, I., Jabr, S., Kisa, A. & Younis, M. Z. (2019). The role of information and communications technology (ICT) in enhancing service sector productivity in Palestine: An international perspective. Journal of Global Information Management (JGIM), 27(1), 47-65. OCHA. (2018). Gaza Blockade. Retrieved from https://www.ochaopt.org/theme/gaza-blockade
Okoye, L. J., Audu, A. & Karatu, B. A. (2017). Emotional intelligence and social support as determinants of entrepreneurial success among business owners in Onitsha metropolis, Nigeria. European Journal of Research in Social Sciences, 5(3).
Olkiewicz, M., Wolniak, R., Eva-Grebski, M. & Olkiewicz, A. (2018). Comparative analysis of the impact of the business incubator center on the economic sustainable development of regions in the USA and Poland. Sustainability, 11(1), 173.
Palestinian Central Bureau of Statistics (PCBS), (2023). On the 75th Annual Commemoration of the Palestinian Nakba, 14/05/2023, Website: https://www.pcbs.gov.ps/post.aspx?lang=en&ItemID=4506
Penrose, E. T. (1959). The Theory of the Growth of the Firm. New York: John Wiley & Sons Inc. Penrose, E. T, 1, 1-23.
Pidduck, R. J., Clark, D. R. & Lumpkin, G. T. (2023). Entrepreneurial mindset: Dispositional beliefs, opportunity beliefs, and entrepreneurial behavior. Journal of Small Business Management, 61(1), 45-79.
Pikkupeura, A. & Qawir, F. (2023). Challenges and Strategies in maneuvering the financial arena for Hardware Startups.
Rani, N. S. A., Krishnan, K. S. D. & Mat, Z. C. (2019). Knowledge management, entrepreneurial skills, and innovation towards informal entrepreneurs (food services) success in Malaysia. International Journal of Business and Social Science, 10(4), 58–65. https://doi.org/10.30845/ijbss.v10n4p7
Rauch, A. & Frese, M. (2007). Let's put the person back into entrepreneurship research: A Meta analysis on the relationship between business owners' personality traits, business creation, and success. European Journal of work and organizational psychology, 16(4), 353-385.
Rhodes, C. & Butler, J. S. (2004). Understanding self-perceptions of business performance: An examination of Black American entrepreneurs. Journal of Developmental Entrepreneurship, 9(1), 55. 8
Rosado-Cubero, A., Hernandez, A., Jim´enez, F. J. B. & Freire-Rubio, T. (2023). Promotion of entrepreneurship through business incubators: Regional analysis in Spain. Technological Forecasting and Social Change, 190, 1 -110, doi.org/10.1016/j.techfore.2023.122419.
Rosli, M. & Hatinah, A. B. (2016). Examining Strategic Improvisation and Performance Relationship in the SMES: Moderating Role of Entrepreneurial Self-Efficacy. International Business Management.
Sefton, M., Rönkkö, I. & Bellgran, M. (2020). Hardware Start-ups in the Scale-up Process of Production–A Mapping of Challenges. In SPS2020 (pp. 378-391). IOS Press.
Segal, G., Borgia, D. & Schoenfeld, J. (2005). The motivation to become an entrepreneur. International Journal of Entrepreneurial Behavior & Research, 11(1), 42-57.
Serio, R. G., Dickson, M. M., Giuliani, D. & Espa, G. (2020). Green production as a factor of survival for innovative startups: Evidence from Italy. Sustainability, 12(22), 9464.
Shamsudeen, K., Keat, O. Y. & Hassan, H. (2017). Entrepreneurial success within the process of opportunity recognition and exploitation: An expansion of entrepreneurial opportunity recognition model. International Review of Management and Marketing, 7(1), 107–111.
Sulistyowati, R. (2023). Entrepreneurial Ecosystem Determinants on Entrepreneurial Self-efficacy Students of Business Education. In International Joint Conference on Arts and Humanities 2022 (IJCAH 2022) (pp. 1339-1349). Atlantis Press.
Tajpour, M. & Hosseini, E. (2021). Entrepreneurial intention and the performance of digital startups: The mediating role of social media. Journal of Content, Community & Communication, 13(1), 2-15.
Usupbaev, I. (2023). Assessing the effectiveness of business incubation in supporting startups addressing climate change: a case study of Y combinator and wren.
Yarima, Y. A. & Hashim, N. B. (2016). The mediating role of entrepreneurial self-efficacy and risk preference on the relationship between entrepreneurship education and entrepreneurial career option: a conceptual perspective. IOSR J Bus Manag, 18(10), 45-51.
Yong, D. T. L. & Hassan, M. S. (2019). Determinants of entrepreneurial success: A review of the literature. International Journal of Entrepreneurship and Small Business, 38(1), 114-140
Akinruwa, T. E., Awolusi, O. D. & Ibojo, B. O. (2013). Determinants of small and medium enterprises (SMEs) performance in Ekiti State, Nigeria: A business survey approach. European journal of humanities and social sciences, 27(1), 1397-1413.
Al-Damen, R. A. (2021). Business incubator and its impact on business success: A case study of Jordan Enterprise Development Corporation (JEDCO). J. Mgmt. & Sustainability, 11, 35.
Atherton, A. (2012). Cases of start?up financing: An analysis of new venture capitalization structures and patterns. International Journal of Entrepreneurial Behavior & Research, 18(1), 28-47.
Bandura, A. (1977). Self-efficacy: toward a unifying theory of behavioral change. Psychological review, 84(2), 191.
Baria, A. & Arshadb, D. (2020). The Mediating Role of Improvisation Behavior on Proclivity for Entrepreneurial Self-Efficacy, Social Networking, and Women-Owned SME Business Success in Malaysia. International Journal of Innovation, Creativity and Change, 13(5), 1297-1314.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
Batra, G., Kaufmann, D. & Stone, A. H. (2003). Investment climate around the world: Voices of the Firms from the World Business Environment Survey. World Bank Publications.
Bird, B. (1988). Implementing entrepreneurial ideas: The case for intention. Academy of Management Review, 13(3), 442-453.
Boyd, N. G. & Vozikis, G. S. (1994). The influence of self-efficacy on the development of entrepreneurial intentions and actions. Entrepreneurship theory and practice, 18(4), 63-77.
Cabrera, E. M. & Mauricio, D. (2017). Factors affecting the success of women’s entrepreneurship: a review of literature. International Journal of Gender and Entrepreneurship, 9(1), 60–77.
Caglayan, M. & Demir, F. (2014). Firm productivity, exchange rate movements, sources of finance, and export orientation. World Development, 54, 204-219.
Campo, J. L. M. (2011). Analysis of the influence of self-efficacy on entrepreneurial intentions. Prospectiva, 9(2), 14-21.
Carter, N. M., Gartner, W. B., Shaver, K. G. & Gatewood, E. J. (2003). The career reasons of nascent entrepreneurs. Journal of Business Venturing, 18(1), 13-39.
Cardon, M. S. (2010). Entrepreneurial self?efficacy and business start?up: developing a multi?dimensional definition. International journal of entrepreneurial behavior & research, 16(4), 329-348.
Dwivedi, N. T. & Mishra, T. (2013). Women-empowerment through women entrepreneurship: A study of Faizabad zone of Uttar-Pradesh. Voice of Research, 2(2), 50–55.
Fitzsimmons, J. R. & Douglas, E. J. (2011). Interaction between feasibility and desirability in the formation of entrepreneurial intentions. Journal of Business Venturing, 26(4), 431-440.
Franco, M., Haase, H. & Pereira, A. (2016). Empirical study about the role of social networks in SME performance. Journal of Systems and Information Technology, 18(4), 383-403.
French, A. M., Shim, J. P., Otondo, R. F. & Templeton, G. T. (2018). An empirical study evaluating social networking continuance and success. Journal of Computer Information Systems, 58(4), 353-362.
Genty, K., Idris, K., Wahizat, N., Wahat, A. & Kadir, S. A. (2015). Demographic factors and entrepreneurial success?: A conceptual review. International Journal of Management Sciences, 6(8), 366–374. 7
Hatak, I. & Zhou, H. (2019). Health as human capital in entrepreneurship: Individual, extension, and substitution effects on entrepreneurial success. Entrepreneurship Theory and Practice, 1–25. https://doi.org/10.1177/1042258719867559
Kiran, R. & Bose, S. C. (2020). Stimulating business incubation performance: Role of networking, university linkage and facilities. Technology Analysis & Strategic Management, 32(12), 1407- 1421.
Krishnan, K., Nandy, D. & Puri, M. (2012). Increased access to financing and firm productivity. Boston, MA: Boston Research Data Center (RDC) of the US Census Bureau.
Lerner, M. & Almor, T. (2002). Relationships among strategic capabilities and the performance of women?owned small ventures. Journal of Small Business Management, 40(2), 109–125.
Lo, M. C., Wang, Y. C., Rinen, C. & Wah, J. (2016). The critical success factors for the organizational performance of SMEs in Malaysia?: a partial least squares approach. Revista Brasileira de Gestão de Negócios Review of Business Management, 18(61), 370–391. https://doi.org/10.7819/rbgn.v18i61.3058
MAS. (2019). Innovation and digital economy in Palestine: Challenges and Opportunities. Retrieved from https://www.mas.ps
Masuo, D., Fong, G., Yanagida, J. & Cabal, C. (2001). Factors associated with business and family success: A comparison of single manager and dual manager family business households. Journal of Family and Economic Issues, 22, 55-73.
Mei, H., Ma, Z., Jiao, S., Chen, X., Lv, X. & Zhan, Z. (2017). The sustainable personality in entrepreneurship: the relationship between Big Six personality, entrepreneurial self-efficacy, and entrepreneurial intention in the Chinese context. Sustainability, 9(9), 1649.
Miao, C., Qian, S. & Ma, D. (2017). The relationship between entrepreneurial self?efficacy and firm performance: a meta?analysis of main and moderator effects. Journal of Small Business Management, 55(1), 87-107.
Morrar, R., Abdeljawad, I., Jabr, S., Kisa, A. & Younis, M. Z. (2019). The role of information and communications technology (ICT) in enhancing service sector productivity in Palestine: An international perspective. Journal of Global Information Management (JGIM), 27(1), 47-65. OCHA. (2018). Gaza Blockade. Retrieved from https://www.ochaopt.org/theme/gaza-blockade
Okoye, L. J., Audu, A. & Karatu, B. A. (2017). Emotional intelligence and social support as determinants of entrepreneurial success among business owners in Onitsha metropolis, Nigeria. European Journal of Research in Social Sciences, 5(3).
Olkiewicz, M., Wolniak, R., Eva-Grebski, M. & Olkiewicz, A. (2018). Comparative analysis of the impact of the business incubator center on the economic sustainable development of regions in the USA and Poland. Sustainability, 11(1), 173.
Palestinian Central Bureau of Statistics (PCBS), (2023). On the 75th Annual Commemoration of the Palestinian Nakba, 14/05/2023, Website: https://www.pcbs.gov.ps/post.aspx?lang=en&ItemID=4506
Penrose, E. T. (1959). The Theory of the Growth of the Firm. New York: John Wiley & Sons Inc. Penrose, E. T, 1, 1-23.
Pidduck, R. J., Clark, D. R. & Lumpkin, G. T. (2023). Entrepreneurial mindset: Dispositional beliefs, opportunity beliefs, and entrepreneurial behavior. Journal of Small Business Management, 61(1), 45-79.
Pikkupeura, A. & Qawir, F. (2023). Challenges and Strategies in maneuvering the financial arena for Hardware Startups.
Rani, N. S. A., Krishnan, K. S. D. & Mat, Z. C. (2019). Knowledge management, entrepreneurial skills, and innovation towards informal entrepreneurs (food services) success in Malaysia. International Journal of Business and Social Science, 10(4), 58–65. https://doi.org/10.30845/ijbss.v10n4p7
Rauch, A. & Frese, M. (2007). Let's put the person back into entrepreneurship research: A Meta analysis on the relationship between business owners' personality traits, business creation, and success. European Journal of work and organizational psychology, 16(4), 353-385.
Rhodes, C. & Butler, J. S. (2004). Understanding self-perceptions of business performance: An examination of Black American entrepreneurs. Journal of Developmental Entrepreneurship, 9(1), 55. 8
Rosado-Cubero, A., Hernandez, A., Jim´enez, F. J. B. & Freire-Rubio, T. (2023). Promotion of entrepreneurship through business incubators: Regional analysis in Spain. Technological Forecasting and Social Change, 190, 1 -110, doi.org/10.1016/j.techfore.2023.122419.
Rosli, M. & Hatinah, A. B. (2016). Examining Strategic Improvisation and Performance Relationship in the SMES: Moderating Role of Entrepreneurial Self-Efficacy. International Business Management.
Sefton, M., Rönkkö, I. & Bellgran, M. (2020). Hardware Start-ups in the Scale-up Process of Production–A Mapping of Challenges. In SPS2020 (pp. 378-391). IOS Press.
Segal, G., Borgia, D. & Schoenfeld, J. (2005). The motivation to become an entrepreneur. International Journal of Entrepreneurial Behavior & Research, 11(1), 42-57.
Serio, R. G., Dickson, M. M., Giuliani, D. & Espa, G. (2020). Green production as a factor of survival for innovative startups: Evidence from Italy. Sustainability, 12(22), 9464.
Shamsudeen, K., Keat, O. Y. & Hassan, H. (2017). Entrepreneurial success within the process of opportunity recognition and exploitation: An expansion of entrepreneurial opportunity recognition model. International Review of Management and Marketing, 7(1), 107–111.
Sulistyowati, R. (2023). Entrepreneurial Ecosystem Determinants on Entrepreneurial Self-efficacy Students of Business Education. In International Joint Conference on Arts and Humanities 2022 (IJCAH 2022) (pp. 1339-1349). Atlantis Press.
Tajpour, M. & Hosseini, E. (2021). Entrepreneurial intention and the performance of digital startups: The mediating role of social media. Journal of Content, Community & Communication, 13(1), 2-15.
Usupbaev, I. (2023). Assessing the effectiveness of business incubation in supporting startups addressing climate change: a case study of Y combinator and wren.
Yarima, Y. A. & Hashim, N. B. (2016). The mediating role of entrepreneurial self-efficacy and risk preference on the relationship between entrepreneurship education and entrepreneurial career option: a conceptual perspective. IOSR J Bus Manag, 18(10), 45-51.
Yong, D. T. L. & Hassan, M. S. (2019). Determinants of entrepreneurial success: A review of the literature. International Journal of Entrepreneurship and Small Business, 38(1), 114-140
Published
2023-11-12
How to Cite
Abualreesh, M., Ngah, R., & Abdul Kadir, M. A. B. (2023). The Mediating Effect of Entrepreneurial Self-Efficacy between Business Incubator Funding and Business Success: A Conceptual Paper. Information Management and Business Review, 15(4(SI)I), 404-410. https://doi.org/10.22610/imbr.v15i4(SI)I.3615
Issue
Section
Research Paper
Copyright (c) 2023 Mohammed Abualreesh, Rohana Ngah, Mohd Ali Bahari Abdul Kadir
This work is licensed under a Creative Commons Attribution 4.0 International License.
Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team edits and formats manuscripts to bring uniformity and standardization in published material.
This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.
