Incubation Support and Startup Effectiveness in Developing Economies: A Meta-Analysis of Institutional Mediators and Knowledge Management Enablers

Abstract

Purpose – This is a meta-analysis of the empirical evidence and the effectiveness of incubation support for startup performance in developing economies in the context of Pakistan. The study's purpose is to measure the net effect of the incubation center services (mentorship, access to funding, networking infrastructure, mediation by Higher Education Institutions (HEIs) and National Incubation Centers (NICs)) on the effectiveness of start-ups and investigate the moderating factor of the countries' income level, incubation period and the study design. Design/methodology/approach – PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analysis) was followed in the systematic meta-analytic methodology. An extensive search of Scopus, Web of Science, Google Scholar and PubMed found 47 empirical papers published between 2015 and 2025 related to the support and success of incubations in developing countries, focally in South Asia. Correlation coefficients (r) were used to calculate effect sizes and the Q-statistic and I² index to assess heterogeneity. To assess the robustness of results, moderator analyses, publication bias assessment (Egger's test, funnel plot inspection) and subgroup analyses were performed.

Findings – The average overall effect size for the meta analyses of the incubation support and the effectiveness of startups was r = 0.42 (95% CI: 0.35–0.49), which is a moderate-to-strong positive association. Notably, government-led NIC programs had a high effect (r = 0.48). There was significant heterogeneity (I² = 68.3%, Q = 143.7, p < 0.001), which was partially attributed to the moderators country income level and incubation duration. The effects in South Asian studies (k = 18) were greater (r = 0.47) than the average for the rest of the global developing world. The effect sizes of gender-inclusive incubation programs were larger than those of non-inclusive programs. Research limitations/implications – The non-significant results of Egger's test (p = 0.12) and funnel plot that was symmetrical does not completely rule out publication bias. Pooled estimates are limited in precision because study designs are heterogeneous (qualitative, quantitative, or mixed methods), as are the ways constructs are operationalized in different cultural contexts. The meta-analysis highlights the importance of standardisation in outcome measures for incubation studies and to incorporate a longitudinal study design to capture long-term effects.

Practical implications – Policymakers in developing economies should prioritize structured mentorship and networking activities in incubation centers since these return the most for the effectiveness of startups. Knowledge management systems and “gender” inclusive designs should be incorporated into government-led NICs to maximise the impact. HEIs should make entrepreneurship teaching, technology transfer offices and industry collaboration a permanent business in its incubation strategy. Social implications – The findings show that gender-inclusive incubation programs yield better startup results, which can support policies to increase women entrepreneurship and reduce socioeconomic disparities in accessing to incubation programs. Improving incubation ecosystems in developing countries can play a role in creating jobs, reducing poverty and progressing towards a knowledge-based economy.

Originality/value – This paper is the first broad meta-analysis to draw conclusions on incubation centre effectiveness in context of knowledge management enablers and institutional mediators in developing economies. The study provides a multi-theoretical approach to identify the aggregated outcomes of incubators based on the Environmental Determinants of Entrepreneurship Theory, Triple Helix Model, Institutional Theory and Resource-Based View. The study aimed to analyze the performance of incubation centers in successful entrepreneurship and to identify their role in the development of entrepreneurship in Pakistan. The study was a literature review and used keywords such as Incubation centers, Startup effectiveness, Meta analysis, Developing economies, Knowledge management, Entrepreneurial ecosystems, Higher Education Institutions, National Incubation Centers, and Pakistan.