A Simulation Model of Growth of Teams and Startups in Academic Development Centers using the System Dynamics Approach
Subject Areas : Science and Technology Parks and Incubators
Mohammadreza Mohamadkhani
1
*
,
Ruhollah Tavallaei
2
,
Amirhossein Mohammadinia
3
,
mahdi farmani
4
,
Esmail laali
5
1 - PhD candidate, Adaptive management and development department, Faculty of Management & Accounting, Allameh Tabatabaei University, Tehran, Iran
2 - Assistant Professor, Faculty of Management & Economy, Imam Hossein University (AS), Tehran, Iran
3 - PhD candidate, Industrial Management department, Faculty of Management & Economy, Imam Hossein University (AS), Tehran, Iran
4 - MSc, Business management department, Faculty of Management & Accounting, Farabi Campus University of Tehran, Iran
5 - MSc, Aerospace Engineering department, Faculty of Aerospace Engineering, K. N. Toosi University of Technology, Tehran, Iran
Keywords: Growth of Teams and Startups, System Dynamics, Causal Loop Diagram, Simulation, Academic Development Centers.,
Abstract :
The purpose of this study is to provide a rich insight into the factors affecting the growth of teams and startups in Academic Development Centers. In this study, the factors affecting the growth of teams and startups were investigated using the system dynamics approach. At first, after reviewing the theoretical literature and the experts’ opinions, Variables affecting the growth of teams and startups were indentified and causal relationships among these variables were depicted. Then, the mathematical relations among these variables were determined and, accordingly, the study system was simulated at growth centre of technician and knowledge based units at Imam Hussein comprehensive university during the period 2016 to 2066. After designing the cause and effect diagrams, six scenarios for the growth of teams and startups were defined, which are: The growth center's share of the profits of successful companies, The effect of interaction with successful companies in promoting the level of entrepreneurial culture, The effect of effective communication with successful companies in attracting financial support for technology units, The effect of changes in the number of clients to enter the center on the system, Admission control policy and The effect of legal protections of technology units on the system. Of the six simulated scenarios, the fifth scenario has the greatest impact on the growth of teams and startups in Academic Development Centers. Therefore, the policy of maintaining the quality of services through controlling the amount of technology units entering the growth centers can be considered an effective and important policy.
1- Shin, D.P., Bae, Y.K. & Son, S.H. The Present and Implications of Technology-based Business Activation Support Policy. KISTEP Issue Weekly, KISTEP, 266(08), 2018.
2- Chang, S. D., & Lee, Z. H. A Study on the Influencing Effects of University Students' E-Business Start-up Intention. The e-Business Studies, 14(3), 37-53, 2013.
3- Kaur, A. A study of role and challenges faced by HR in startups. International Journal for Emerging Research & Development, 1(1), 45-49, 2018.
4- Howell, S. T. Financing innovation: Evidence from R&D grants. American Economic Review, 107(4), 1136-64, 2017.
5- Sayyedjavadin, S. R., Hassangholipour, T., Manian, A., & Astarki, S. Designing a Human Resource Management Model for Startup Companies. Journal of Research in Human Resources Management, 13(1), 131-170, 2021 (In Persian).
6- Salamzadeh, A., & Kesim, H. K. The enterprising communities and startup ecosystem in Iran. Journal of Enterprising Communities: People and Places in the Global Economy, 2017.
7- Sipola, S., Puhakka, V., & Mainela, T. A start-up ecosystem as a structure and context for high growth. In Global entrepreneurship: Past, present & future. Emerald Group Publishing Limited, 2016.
8- Morris, M. H., Shirokova, G., & Tsukanova, T. Student entrepreneurship and the university ecosystem: A multi-country empirical exploration. European Journal of International Management, 11(1), 65-85, 2017.
9- Pal, R., Torstensson, H., & Mattila, H. Antecedents of organizational resilience in economic crises—an empirical study of Swedish textile and clothing SMEs. International Journal of Production Economics, 147, 410-428, 2014.
10- Fallah, M. R. Meta-Synthesis of the Creation of Dynamic Resilience to the Corona Virus in the Field of Start-ups. Journal of International Business Administration, 3(10), 117-136, 2020 (In Persian).
11- Dobbs, M., & Hamilton, R. T. Small business growth: recent evidence and new directions. International journal of entrepreneurial behavior & research, 2007.
12- Gielnik, M. M., Zacher, H., & Schmitt, A. How small business managers’ age and focus on opportunities affect business growth: a mediated moderation growth model. Journal of Small Business Management, 55(3), 460-483, 2017.
13- Ngek, N. B., & van Aardt Smit, A. Will promoting more typical SME start-ups increase job creation in South Africa?. African Journal of Business Management, 7(31), 3043-3051, 2013.
14- Neneh, B. N., & Vanzyl, J. Growth intention and its impact on business growth amongst SMEs in South Africa. Mediterranean Journal of Social Sciences, 5(20), 172, 2014.
15- Sagath, D., van Burg, E., Cornelissen, J. P., & Giannopapa, C. Identifying design principles for business incubation in the European space sector. Journal of Business Venturing Insights, 11, e00115, 2019.
16- Hafezi, M. E., Sakhdari, K., & Hamidi, N. Exploring the Factors Affecting the Performance of Business Incubators. Journal of Development and Transformation Management, 12(43), 45-55, 2021 (In Persian).
17- Al-Mubaraki, H. M., & Busler, M. Business incubation as an economic development strategy: A literature review. International Journal of Management, 30(1), 362-373, 2013.
18- Murray, C., Turpin, M., Edwards, I., & Jones, M. A qualitative meta-synthesis about challenges experienced in occupational therapy practice. British Journal of Occupational Therapy, 78(9), 534-546, 2015.
19- Gerlach, S., & Brem, A. What determines a successful business incubator? Introduction to an incubator guide. International Journal of Entrepreneurial Venturing, 7(3), 286-307, 2015.
20- Franco, M., Haase, H., & Correia, S. Exploring factors in the success of creative incubators: A cultural entrepreneurship perspective. Journal of the Knowledge Economy, 9(1), 239-262, 2018.
21- Kane, T. J. The importance of startups in job creation and job destruction. Available at SSRN 1646934, 2010.
22- Sedláček, P., & Sterk, V. The growth potential of startups over the business cycle. American Economic Review, 107(10), 3182-3210, 2017.
23- Cohen, B. Sustainable valley entrepreneurial ecosystems. Business Strategy and the Environment, 15(1), 1-14, 2006.
24- Ries, E. The lean startup: How today's entrepreneurs use continuous innovation to create radically successful businesses. Currency, 2011.
25- Nadafi, R., & Ahmadvand, M. Identification and Prioritization of Development Factors of Startups Using Q methodology. Journal of Entrepreneurship Development, 10(3), 517-534, 2018 (In Persian).
26- Reshadatjo, H., & Ebrahimpour, A. Presenting the model of the effect of entrepreneurial marketing dimensions on consumer behavior with the approach of structural equations in startups in the field of new technology. Journal of Marketing Management, 15(49), 23-37, 2021 (In Persian).
27- Frederiksen, D. L., & Brem, A. How do entrepreneurs think they create value? A scientific reflection of Eric Ries’ Lean Startup approach. International Entrepreneurship and Management Journal, 13(1), 169-189, 2017.
28- Blank, S., & Dorf, B. The startup owner's manual: The step-by-step guide for building a great company. John Wiley & Sons, 2020.
29- Sakhdari, K., Zarei, B., & Sadeghi, B. Analyzing Start Ups’ Behavioural Model Based on the Customer Development Model (Case Study: Startups in the Accelerators of Tehran). Journal of Entrepreneurship Development, 10(3), 395-415, 2018 (In Persian).
30- Centobelli, P., Cerchione, R., & Esposito, E. Knowledge management in startups: Systematic literature review and future research agenda. Sustainability, 9(3), 361, 2017.
31- Carlson, M., & Usher, N. News startups as agents of innovation: For-profit digital news startup manifestos as metajournalistic discourse. Digital journalism, 4(5), 563-581, 2016.
32- Hughes, D. J., Lee, A., Tian, A. W., Newman, A., & Legood, A. Leadership, creativity, and innovation: A critical review and practical recommendations. The Leadership Quarterly, 29(5), 549-569, 2018.
33- Pino, C., Felzensztein, C., Zwerg-Villegas, A. M., & Arias-Bolzmann, L. Non-technological innovations: Market performance of exporting firms in South America. Journal of Business Research, 69(10), 4385-4393, 2016.
34- Nascimento, C. M. R. D. S. D. What is the role of Human Resource Management in growing start-ups? (Doctoral dissertation), 2017.
35- Kim, J. D. Is there a startup wage premium? Evidence from MIT graduates. Research Policy, 47(3), 637-649, 2018.
36- Dilger, R. J. SBA Assistance to Small Business Startups: Client Experiences and Program Impact. Congressional Research Service, 2013.
37- Guzman, J., & Stern, S. The State of American Entrepreneurship: New Estimates of the Quality and Quantity of Entrepreneurship for 32 US States, 1988-2014 (No. w22095). National Bureau of Economic Research, 2016.
38- Mirzazadeh, Z. S., kashtidar, M., & Rahmanpour, A. Identifying and Prioritizing Factors Influencing the Startups of Sport Science Students in Iran Using Analytical Network process (ANP). Journal of Applied Research in Sport Management, 9(4), 71-90, 2021 (In Persian).
39- Safari, S., & Samiazadeh, M. Needs Assessment of Entrepreneurship knowledge and Skill Education a Comparative Approach in Different Fields of Humanities. Technology of Education Journal, 6(4), 287-301, 2013 (In Persian).
40- Sarwoko, E., & Frisdiantara, C. Growth determinants of small medium enterprises (SMEs). Universal Journal of Management, 4(1), 36-41, 2016.
41- Adomako, S. Entrepreneurial passion and small business growth in Ghana (Doctoral dissertation, University of Warwick), 2016.
42- Farokh, S., Kordnaeij, A., Khodadadhosseini, S. H., & Zali, M. R. Identification of a Growth framework for Small and Medium-Sized Enterprises in Iranian Food Industry, using Grounded Theory. Journal of Entrepreneurship Development, 10(3), 457-475, 2018 (In Persian).
43- Salouneh, S., Saketi, P., & Purmahdi, K. Investigating Strategies for growth Iranian Women's Small and Medium enterprises Market. Consumer Behavior Studies Journal, 7(1), 47-71, 2020 (In Persian).
44- CANU, A. Assessing student startup teams interactions through performative patterns approach, 2019.
45- Gibb, A., & Hannon, P. Towards the entrepreneurial university. International Journal of Entrepreneurship Education, 4(1), 73-110, 2006.
46- Mas-Verdú, F., Ribeiro-Soriano, D., & Roig-Tierno, N. Firm survival: The role of incubators and business characteristics. Journal of Business Research, 68(4), 793-796, 2015.
47- Albort-Morant, G., & Ribeiro-Soriano, D. A bibliometric analysis of international impact of business incubators. Journal of Business Research, 69(5), 1775-1779, 2016.
48- Hernandez, R., & Carrà, G. A conceptual approach for business incubator interdependencies and sustainable development. Agriculture and Agricultural Science Procedia, 8, 718-724, 2016.
49- Lukeš, M., Longo, M. C., & Zouhar, J. Do business incubators really enhance entrepreneurial growth? Evidence from a large sample of innovative Italian start-ups. Technovation, 82, 25-34, 2019.
50- Xiao, L., & North, D. The graduation performance of technology business incubators in China’s three tier cities: the role of incubator funding, technical support, and entrepreneurial mentoring. The Journal of Technology Transfer, 42(3), 615-634, 2017.
51- Tari, G., & Porhelm, H., Structural Model of Factors Affecting Survival and Growth of Startups in Iran. Journal of Executive Management, 12(23), 315-341, 2020 (In Persian).
52- Krishna, A., Agrawal, A., & Choudhary, A. Predicting the outcome of startups: less failure, more success. In 2016 IEEE 16th International Conference on Data Mining Workshops (ICDMW) (pp. 798-805). IEEE, 2016.
53- Arora, A., Fosfuri, A., & Rønde, T. Waiting for the payday? The market for startups and the timing of entrepreneurial exit. Management Science, 67(3), 1453-1467, 2021.
54- Lee, M. J., & Kim, J. G. The effects of entrepreneurial intention and entrepreneurship on entrepreneurial success. Journal of Digital Convergence, 11(9), 55-65, 2013.
55- Garonne, C., & Davidsson, P. An exploration of the phenomenon of business planning in nascent and young firms. In Models of start-up thinking and action: Theoretical, empirical and pedagogical approaches. Emerald Group Publishing Limited, 2016.
56- Cusumano, M. A. Evaluating a startup venture. Communications of the ACM, 56(10), 26-29, 2013.
57- Ekaf, R. L. Interactive planning: management in line with change to build the future of the organization. Tehran, Mad Book Publishing, 2001 (In Persian).
58- Ekaf, R. L. Optimization of scientific method decisions and research. Tehran, Arvin Publishing, 1998 (In Persian).
59- Sterman, J. Systems thinking and modeling for a complex world. Tehran, Samt Publications, 2016 (In Persian).
60- Ebadi Ziaei, A., Mohaghar, A., Azar, A., Sadeghi Moghadam, M. R., & Safari, H. Identifying Causal Loops for Common Approaches of the EFQM Excellence Model. Industrial Management Journal, 12(2), 249-270, 2020 (In Persian).
61- Farhangi, N., Abbasnejad, T., & Ghafournia, M. Evaluation of Outsourcing Activities of the Subscribers Services Sector of Water and Wastewater Company based on the System Dynamic Approach: Hormozgan Province. Industrial Management Journal, 11(1), 111-132, 2019 (In Persian).
62- Ahmadvand, A. M., Khodadadi Abyazani, H., & Mohammadiani, Z. An analysis of housing market in Tehran Province using system dynamics. Industrial Management Journal, 6(4), 665-683, 2015 (In Persian).
63- Sterman, J. Business dynamics, system thinking and modeling for a complex world. McGraw Hill, New York, NY, 2000.
64- Lane, D. C., Oliva, R. The Greater whole toward a synthesis of system dynamics and soft systems methodology. European journal of operational research, 107, 214-235, 1998.
65- Mahmoodi, Z., Sayadi, A., & Rajabzadeh Ghatari, A. Dynamic modelling of labor productivity in mining- Case study: Chadormaluo mining and industry complex. Industrial Management Journal, 8(2), 287-308, 2016 (In Persian).
66- Sadeghi Moghadam, A. A., Khatami Firozabadi, A., & Rabbani, Y. Using Combined Method of SD and SSM for Solving Unstructured Social Problems. Industrial Management Journal, 3(2), 55-76, 2010 (In Persian).
67- Alighadr, Z., & Akhoondzadeh Noghabi, E. A new Dynamic Model for Knowledge Management: A case study of a Transportation Company. Industrial Management Journal, 6(2), 337-360, 2014 (In Persian).
68- Al-Mubaraki, H., & Schröl, H. Measuring the effectiveness of business incubators: a four dimensions approach from a gulf cooperation council perspective. Journal of Enterprising Culture, 19(04), 435-452, 2011.
69- Brush, C. G., Carter, N. M., Gatewood, E., Greene, P. G., & Hart, M. M. Clearing the hurdles: Women building high-growth businesses. London: Financial Times/Prentice Hall, 2004.
70- Chawla, S. K., Khanna, D., & Chen, J. Are small business critical success factors same in different countries. SIES Journal of Management, 7(1), 1-12, 2010.
71- Jain, S. Growth of startup ecosystems in India. International Journal of Applied Research, 2(12), 152-154, 2016.
72- Klačmer Čalopa, M., Horvat, J., & Lalić, M. Analysis of financing sources for start-up companies. Management: journal of contemporary management issues, 19(2), 19-44, 2014.
73- Ko, C. R., & An, J. I. Success Factors of Student Startups in Korea: From Employment Measures to Market Success. Asian Journal of Innovation and Policy, 8(1), 97-121, 2019.
74- Theodorakopoulos, N., Kakabadse, N. K., & McGowan, C. What matters in business incubation? A literature review and a suggestion for situated theorising. Journal of small business and enterprise development, 2014.