Organizational survival of technology-based enterprises after incubation: a qualitative comparative explanation

Purpose - To analyze the configurations of legitimacy, dynamic capabilities, and business resources consistent with the survival of post-incubated companies. Theoretical framework - "Liability of newness" highlights that nascent companies suffer from factors that hinder their survival. However, business incubators help to develop nascent businesses. This paper seeks to show how different configurations between legitimacy, dynamic capabilities, and resources can form a strategic orientation for survival. Design/methodology/approach - The strategy of multiple case studies was applied to 90 companies and the techniques of fuzzy set qualitative comparative analysis (fsQCA) were used. Findings - The results present two configurations of technology-based companies with high perceptions of legitimacy, resources, and dynamic capabilities that differ by size and satisfaction. A third configuration of technology-based companies has high perceptions of legitimacy and resources. A fourth configuration involves technology based companies with high perceptions of legitimacy, a larger size, and satisfaction with the incubator. Practical & social implications of research - For managers, the results make it possible to create an incubation environment that is able to identify and fill the individual gaps of the enterprises. In addition, they indicate that business incubator managers and/or funders should focus their efforts on the incubation of technology-based companies. Originality/value - The first is to reinforce the central role of legitimacy for survival. The second is to show that the interrelationship between legitimacy, resources, and dynamic capabilities forms resilient organizational configurations in different ways.