ICT incubation in Malaysia: selection performance practice

The role of business incubators has gained recognition in both developed and developing nations. Positive outcomes of business incubators include the creation of jobs, acceleration in growth of new businesses, and revitalization of communities. This paper analyzes the strategies used by Malaysian ICT incubators in selecting prospective incubatees. A total of 118 incubatees participated in this study through a survey questionnaire and were asked about the selection process they were subjected to during their application. Exploratory factor analysis reveals that ICT incubators in Malaysia largely tend to select their incubatees based on the market characteristics that the incubatees plan to get into. Other selection criteria used product characteristics and financial characteristics of the incubatees applying.