The Incubation Process for the Creation of Viable Firms: The Case of ARCA Consortium

Abstract

Purpose of the study. The process of creation of new firms is particularly complex when it starts from very innovative ideas that may be not understood by the stakeholders of the firm. The aim of this study is to demonstrate that academic incubators play a key role for firms’ viability. Methodology. We analyze the effectiveness of the incubation process that takes place in the incubator of Consorzio Arca, by means of a single case study with embedded design. Findings. The effectiveness of the incubation process is demonstrated by the high number of spin-offs that, after incubation, are able to stand alone in the market and to find the consonance with the relevant supra-systems. Research limits. The reduced significance of balance sheet aggregate data in representing the real competitiveness level and the lack of a measurement method of consonance degree. Practical implications. The case study of ARCA Consortium can be considered as a virtuous example of incubator. It has created a “cultural humus” able to promote entrepreneurship even in an economically depressed context (Sicily). Originality of the study. Several studies on academic spin-offs are focused on the negative impact generated by the lack of resources and competences on competitiveness. In this study, adopting a systemic perspective, we shift the focus from the firm to the context, shedding light in a better understanding of the systemic actions that create the prerequisite conditions for the achievement of firms’ viability.