Critical success and moderating factors effect in Indonesian Public Universities' business incubators

Abstract

This study aims to examine the effect of critical success and moderating factors in Indonesian public universities' business incubators. The study of business incubators benefits university professors in their roles as managers and advisors, university faculty entrepreneurs and start-ups/tenants in the knowledge transfer and entrepreneurship learning processes, and government officials in effective policy making. For the universities, the incubators serve as a platform for the commercialization of their research efforts. The incubators assist the universities' stakeholders in fulfilling their newly identified responsibilities towards building the nation's economy and giving the faculty members and graduate students the chance to conduct research. Regarding the economic environment, the incubators help create job opportunities, increase the country's economic value, and reduce poverty. This research employed the quantitative method approach, and the data were analyzed using the IBM SPSS version 23 and Smart PLS version 3 statistical software packages. The samples of this research were comprised of 31 business incubator managers from Indonesian public universities. Although there have been previous models about critical success and moderating factors for business incubators in other countries, this study is the first that was conducted in Indonesia and found direct and indirect relationships between critical success factors and moderating success factors for Indonesian Public University Business Incubators. The results of the research demonstrated that good system and infrastructure showed a strong direct relationship with success factors and that information technology showed a strong relationship with the moderating factors, namely age and quality of facilities. Furthermore, mentoring and networking showed a strong relationship with the moderating factors good system and infrastructure and that university regulation had a strong relationship with moderating factor credit and rewards. Entry criteria, exit criteria, and funding support showed strong direct relationships to success factors. These findings could improve the management of business incubators in Indonesian Public Universities and allow them to more successful.