Are dynamic capabilities relevant for incubation performance?

Abstract: Performance research on incubation is a vibrant and complex field, which has received a lot of criticism in recent studies. So far, no dominant theory for incubation performance has evolved and authors request the application of more diverse economic frameworks on incubation to gain improved understanding. As a response, this study takes the fresh perspective of dynamic capabilities and resource-based theory as the baseline for the creation of a new model for incubation performance. By utilizing a qualitative research approach combining data from interviews and observations, the case of VentureLab, a Swedish university incubator, is presented and explored along various theoretical dimensions. The data is then used to adapt the theoretical performance model to practical reality within the incubator and draw conclusions on hurdles for customized or personalized incubation programs and for future methodologies in incubation research. The study concludes by pointing towards the positive effects of dynamic capabilities based on entrepreneurial satisfaction, motivation, personality, psychological state, resource needs and stakeholder expectations on incubation performance.