Business Incubation Models in Institutionally Void Environments : Evidence from Egypt

This paper builds a conceptual framework of business incubation models in institutionally void environments, a relevant yet understudied topic in the extant literature. On the basis of case studies drawn from a sample of business incubators in Egypt and grounding on the resource dependence theory and the literature on institutional voids, we posit that there is a necessity for two different incubation models in institutional laggard environments, typically found in, yet not limited to, developing countries. In particular, we show evidence that the two models supply and facilitate different needs of entrepreneurs, in different stages of entrepreneurial life cycle. We further argue that the incubation model choice is contingent on the incubator sponsors, i.e. affiliation of the incubator, mainly through available resources and imposed objectives. Finally, we offer implications for policy makers who can use the framework to design the regulations in a way that will stimulate appropriate incubator creation and hence sustain local entrepreneurship, as well as for incubator managers who can follow the findings to position their incubation model in line with their resources, capabilities and objectives