An Empirical Analysis into the Underlying Components Impacting
Upon Business Incubation Performance of Malaysian ICT Incubators
A thesis submitted in fulfilment of the requirements for
the degree of Doctor of Philosophy
Fararishah Abdul Khalid
BSEE, MBA
School of Management
Business Portfolio
RMIT University
April 2012
ii
Statement of Authorship
I certify that except where due acknowledgement has been made, the work is that of the
author alone; the work has not been submitted previously, in whole or in part, to qualify
for any other academic award; the content of the thesis is the result of work which has
been carried out since the official commencement date of the approved research
program; and, any editorial work, paid or unpaid, carried out by a third party is
acknowledged.
-------------------------------
Fararishah Abdul Khalid
20 April 2012
iii
Acknowledgements
Alhamdulillah for all His blessings that made this journey possible. Completing this
thesis is one of the major achievements of my life, and there are many who should be
acknowledged for the role that they have played.
First, it is with immense gratitude that I acknowledge the invaluable supervision of my
principal supervisor, Associate Professor David Gilbert. He has been dedicated in
guiding me with unwavering support throughout this academic journey. His immense
knowledge, optimism, patience, and encouragement have been my source of motivation
throughout this journey. I am truly honoured and humbled to have had such a dedicated
supervisor.
I acknowledge my second supervisor Dr Afreen Huq who offered significant advice on
conducting qualitative research. It has been a pleasure to work with her and she is
deserving of recognition for her efforts.
I express my sincere thanks to the RMIT School of Mathematical and Geo-Spatial
Science for the statistical analysis aspect of this thesis, and the School of Management
for their financial scholarship support which made the pursuit of this higher degree
possible. I thank Universiti Teknikal Malaysia Melaka (UTeM) and the Malaysian
Ministry of Higher Education (MOHE) for the opportunity to bring an aspiration to
reality.
I thank the President of the National Business Incubation Association (NINA), Andrew
Wong for his support and I acknowledge the participation of all six incubator managers
and 118 incubatees in this study.
Finally, I would like to thank my friends whose acquaintance I cherish.
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Dedication
This thesis would have remained a dream had it not been for my husband Amin, who
believed that I would one day pursue a doctorate. His unwavering love and support over
the course of my research and during my final months of writing have kept me
motivated to accomplish this momentous juncture in my life.
To my children Nazim and Aishah, who grew in parallel with this thesis; and Husayn
and Sara, who were born mid-way in the PhD journey - they have been a great
inspiration and have given me the greatest satisfaction in completing this journey.
This thesis is also dedicated to my parents and parents-in-law for their love, support,
and prayers.
v
Table of Contents
Page
Statement of Authorship
ii
Acknowledgements
iii
Dedication
iv
Table of Contents
v
List of Tables
viii
List of Figures
ix
List of Appendices
x
List of Acronyms
xi
Abstract
xii
Publications, Conference Presentations, and Awards of the Candidate Originating from
the Present Thesis
xiv
CHAPTER 1
INTRODUCTION
1
1.1
Research Objectives
2
1.2
Justification for the Research
3
1.3
Methodology
4
1.4
Organisation of the Thesis
5
1.5
Limitations and Key Assumptions
6
CHAPTER 2
LITERATURE REVIEW
8
2.1
Introduction
8
2.2
An overview of business incubation
8
2.3
Definitions
11
2.4
Incubator types
14
2.5
Roles of business incubators
18
2.6
Business incubation in developed countries
23
2.7
Business incubation in developing countries
25
2.8
The importance of SMEs in Malaysia
27
2.8.1
Definitions of SMEs
27
2.8.2
The role of SMEs in the economy
28
2.8.3
The significance of ICT SMEs in the Malaysian economy
2.8.4
Challenges of SMEs in Malaysia
37
2.9
Incubator as economic development tool
41
2.9.1
Investigating the business incubation process in Malaysia
46
2.9.2
Issues and constraints surrounding the Malaysian ICT incubators
CHAPTER 3
CONCEPTUAL FRAMEWORK AND RESEARCH
PROPOSITIONS
49
3.1
Introduction
49
3.2
Gaps in the Extant Incubation Research
3.3
Significance of Study
50
3.4
Conceptual Framework
51
3.4.1
Selection Performance
52
3.4.2
Monitoring and Business Assistance Intensity
3.4.3
Resource Allocation
61
3.4.4
Professional Management Services
65
3.4.5
Business incubation performance
70
3.5
Conclusion
73