Abstract/Summary

Kazakhstan is currently undergoing a significant economic transition, shifting from resource dependency toward fostering innovation and entrepreneurship. Business incubators are central to this diversification strategy, serving as institutional intermediaries that bridge critical gaps in resources, networks, and expertise for early-stage ventures. This study explores the role of business incubators in facilitating entrepreneurship within Kazakhstan’s institutionally void environment. The study uses institutional theory as a framework to consider how structural and contextual factors affect the way incubators work, with a focus on how they can change institutions. We collected data for this qualitative study through 66 semi-structured interviews with managers, incubatees, and policymakers from two prominent Kazakhstani incubators—MOST Inc. and NURIS—and analysed the data via thematic analysis and inductive reasoning techniques. Analysis identified key structural challenges impacting incubators: limited funding, inadequate infrastructure, and weak institutional linkages. In this context, we found that business incubators take on dual roles, protecting entrepreneurs from external risks and bridging resource and network gaps. These roles themselves play a crucial role during the critical period when early-stage ventures are most susceptible to failure. The study also identified the dynamic influence of cultural and regulatory factors on incubators’ ability to foster entrepreneurial success. Findings influenced the development of a context-specific framework for optimising business incubators in emerging economies. This framework integrates the inputs, processes, and outputs (IPO) model with business lifecycle stages and ecosystem dynamics, offering actionable insights for policymakers and stakeholders. The study concludes that structural barriers and institutional voids constrain the effectiveness of business incubators, despite their pivotal role in Kazakhstan’s entrepreneurial ecosystem. To maximise their impact, targeted policies and ecosystem development strategies are required. This research contributes to institutional theory and offers practical recommendations for enhancing business incubation in emerging economies.