The Value of Perceived and Actual Intra-Incubator Networks and Firm Performance

Social networks affect firm performance by providing access to valuable resources. One way to build a social network is to enter into a business incubator. In this paper, we study the relationship between the founders’ perceived value of their intra-incubator social network, their actual intra-incubator social network, and firm performance. In addition, we study how these effects are moderated by: a) the entrepreneurial experience of the founder, b) the dynamism of the market in which the firm operates, c) the age of the firm, d) the size of the firm, and e) the amount of time the firm has been located in the incubator. Finally, while prior studies do not systematically distinguish between different dimensions of intra-incubator networks, we explore how our findings differ when distinguishing between 7 key dimensions of intra-incubator networks: 1) ideas for product development, 2) information about market trends, 3) how to manage my company, and information about potential new 4) colleagues/personnel, 5) customers, 6) suppliers, and 7) investors.