Applying the ecosystem model in a new context? The case of business incubation in Oman

Abstract

This paper studies entrepreneurship ecosystem development in a context little discussed in the extant literature to date: Oman. Specifically, it focuses on business incubation (BI) initiatives as a policy tool for developing the local, regional, and national systems of supporting entrepreneurship and SME growth. Although BI’s are a popular policy measure for ecosystem development, spreading globally from their original conception in the United States around 60 years ago, their universal effectiveness is questioned. We analyse the tenability of BI as an economic development strategy by entrepreneurship ecosystems as a conceptual framework to help us understand the multitudinous cultural, institutional, and governance structures required for success. Specifically, we consider these ecosystem dynamics and their influence on the incubation of SMEs in the novel context of an oil‐rich yet transitioning economy such as Oman. Conducting interviews with 22 key informants within a range of ecosystem actors (policy‐makers, incubator managers, academics, and entrepreneurs) we find that existing capabilities within the Omani BI programme are not yet fully fit for purpose, highlighting the need to establish developmental priorities for the wider entrepreneurial ecosystem, bottom‐up. Finally, we reflect on the wider cultural and institutional constraints highlighted, and suggest potentially fruitful avenues for further research.

How strong is your social capital? Interactions in a non-transparent entrepreneurial ecosystem

“…The findings were then discussed thematically, along with the findings from the participant observation and results from the extant literature. This procedure is consistent with previous studies (Theodoraki and Messeghem, 2017; Mukiza et al , 2020; Al‐Baimani et al , 2021).…”

From Incubation to Sustainability: a Case-Study of Graduated Companies in Portugal

“…As several studies point out, STPs and BIs are interdependent on the external environment (e.g. Phan et al, 2005;Al-Baimani et al, 2021;Fernández et al, 2019). Thus, national and regional experiences in terms of industry characteristics and surrounding structures influence the way in which incubation structures are developed and analyzed (Hadmani, 2006).…”

Taking the systems approaches out of their comfort zones: Perspectives from under explored contexts

“…In an underdeveloped context, they may fail to live up to expectations. As illustrated by Al-Bamani and colleagues (Al-Baimani et al, 2021) in this special issue, cultural and institutional constraints in Oman left incubators there as "cathedrals in the desert" without the impact hoped for. Contrarily to this example, Gonzalo and Kantis (in press) show how orchestrated public policies embedded in a favorable institutional environment led India's venture capital market to thrive.…”

“…Another context added to the ecosystems literature and not well explored to date is that of Oman, presented by Al-Baimani et al (2021). In their paper, entrepreneurial ecosystems are examined in the light of efforts to encourage entrepreneurship and SME growth in a country with little precedent of employing policy toward innovation and entrepreneurship efforts.…”