Aligning Business Strategy of Incubator Center and Tenants

Incubator center is developed to help a particular group of small business players to achieve the expected business growth. In this center, business players often called as tenants will get assistances in pertaining with space, professional network, marketing, investment or funding, and training to improve their business capability. There are three types of incubator center, namely universities that help their alumni or business people in their surrounded area, company that supports small business as the corporate social responsibility, and independent organizations that have specialties in the business development. Some might success in increasing the capacity of the tenants, while other can have difficulties to increase the simplest business capability, e.g., to define the production cost to measure the profit. This study was intended to propose a model to align the business strategy between incubator center and its tenants. The sales and profit growth are the main priorities for the tenants together with their business capability and sustainability. The proposed alignment model provides measurement tools that link the motivation of tenants for joining the incubation process with the mission of incubator center. The linkage covered the key performance indicators (KPI), steps to achieve the target and evaluation tools to improve the current handicaps. An experiment on 4 (four) diverse business fields of the tenants of an incubator center was performed to test the model. As a result, the increase of KPI of incubator center will simultaneously yield a higher value of the tenants' sales.