3. Research Contribution
This research aims to contribute to the theory and practices of innovation and social networking. Such
contribution can elaborate into:
1. At practical level, it is expected that this study will provide evidence of business incubator role in managing
innovation, social interaction in village based community in Indonesia. It also contributes as guidance to
another form of business incubator such cooperative on how to adopt absorptive capacity in order to improve
competitiveness in globalized business environment.
2. At theoretical level, this study aims to enrich the literature of business incubator as one of economic tool to
develop and overcome social inequality between urban and village in Indonesia. How SME and business
incubators learns to interact?
3. At the policy level, this research enables the mapping of important policy implications – within a company,
industry or sector, government –to find a suitable model of intervention policy to increase the welfare of
village.