Conference

We draw from resource dependence theory and literature on institutional voids and sponsorship to derive a conceptual framework that is subsequently corroborated on the basis of qualitative methodology, i.e. case studies of an appropriate sample of business incubators in Egypt. We posit that there is a necessity of two different incubation models in developing countries due to more severe institutional voids, and show evidence that they 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 findings to design the regulations in a way that will stimulate appropriate incubator creation and hence sustain 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.