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For whom size matters – the interplay between incubator size, tenant characteristics and tenant growth

Abstract The present study introduces a multilevel ‘fit’ perspective on business incubation to examine the link between incubator size and tenant growth. We suggest that the effect of incubator size on tenant growth is not universally positive or negative but is contingent upon (a) the size of the tenants’ venture team and (b) whether tenants are operating in a high-tech industry. Based on data from 276 tenants hosted in 67 business incubators in Germany, multilevel analyses provide support for our hypotheses. With its findings, the present study complements earlier incubator research and expands our knowledge on which types of business incubators are best suited to facilitate venture development.