Brazil: measuring the constructs of the business incubation process

With various gaps remaining in business incubation literature, developing scales that capture the multi-dimensional constructs of the incubation process remains a necessity. While living and traveling within Brazil, this author journeyed within Brazil's well-developed incubation ecosystem in order to investigate the reproducibility and validity of scales whose authors propose measure the constructs that capture the process of business incubation which were defined in their options-driven theory of business incubation as "selection performance", "monitoring and business assistance intensity", and "resource munificence". Regression analysis resulted in the data suggesting that there is no statistically significant predictive ability of the Hackett and Dilts scales when used to predict incubatee outcomes from this study's sample of incubators. The results of the analysis between total score in each of the three constructs and incubatee outcomes suggested that when the total score within the construct of selection performance increases, there tends to be a decrease in incubatee outcomes where the incubatee was surviving and growing profitably at the time of its exit from the incubator. Also, there tends to be a decrease in incubatee outcomes where the incubatee was surviving and growing on a path toward profitability at the time of the incubator exit. The results show no predictive ability of the remaining two constructs of "monitoring and business assistance intensity" and "resource munificence" to capture business incubation performance. The item specific analysis of all correlating and inter-correlating variables for each of the dependent variables, resulting in several significant relationships, however, many demonstrate negative relationships which also run contrary to the relationships proposed by Hackett and Dilts. These results have challenged both the validity of the Hackett and Dilts scale as a tool for investigating the constructs of the incubation process, and the ability of the options-driven theory to explain and predict business incubation outcomes.