Business incubation as strategy

Abstract

PurposeThe purpose of this paper is to propose that an unprecedented revolutionary change in the structure of the US economy warrants attention to the internal structures, cultures and strategies. Consequently, it is argued that for businesses, especially large industrial establishments (LIEs), to survive and prosper in the new and emerging economic order, they must aggressively redesign their organizational environments as a business incubator to leverage new and emerging social and economic opportunities in the development and commercialization of new products, new processes, and new business models, among others. These strategic goals and objectives require firms to pursue leverage creativity, innovation, and entrepreneurship as well as embrace and adopt business incubation as strategy.Design/methodology/approachThe paper attempts to make business incubation a strategy not only for new and emerging technology‐driven firms but also for large industrialized corporations. In addition, it argues that, in the new economy, creativity, innovation and entrepreneurship should not be the exclusive routine or practice of only small firms but should also be a part of large corporations if they are to survive and prosper in the new economy.FindingsFuture research may develop testable hypotheses to validate claims and assertions. The last couple of decades have witnessed unprecedented revolutionary change in the structure of the US economy. Whether it is called the “entrepreneurial economy” or the “new economy”, entrepreneurship, innovation and creativity have become the hallmark of economic and business prosperity.Practical implicationsThese concepts should hopefully encourage managers to view their organizations as business incubators on the basis of certain enabling structures, cultures (values, beliefs, norms, etc.) and policies and strategies that may either unleash and leverage creativity, innovation and entrepreneurship or inhibit them. After thinking about their organizations in terms of a business incubator, managers, hopefully, will craft business incubation strategies – programs, activities, and events that will bring a community orientation and collective action to existing product improvements, new product developments and the commercialization agenda via creativity, innovation and entrepreneurship.Originality/valueBusiness incubators have traditionally been recognized as new organizational forms for promoting entrepreneurship and stimulating new business formation. Similarly, business incubation programs, activities, and events have routinely been perceived as being beneficial to entrepreneurs, start‐ups, and small business. It is possible that no one so far has conceptualized and endogenized the firm as a business incubator and business incubation as strategy.