Analysis of Social Media Impact on Opportunity Recognition. A Social Networks and Entrepreneurial Alertness Mixed Approach.

Eduard Gabriel Ceptureanu,Marian Pompiliu Cristescu,Gurjeet Dhesi,Sebastian Ion Ceptureanu

doi:10.3390/e22030343

Abstract

This paper investigates the effects of social media on entrepreneurial opportunity recognition. Combining the internal and external approaches of opportunity recognition, the study analyzes how social media influences the entrepreneurs in discovering new entrepreneurial opportunities. Structural equation modeling was used in this study, using the variance-based partial least squares (PLS)–structural equation modeling (SEM), on a sample of 354 entrepreneurs. We concluded that social media directly and positively influences entrepreneurial opportunity recognition while entrepreneurial alertness (internal approach) and social networks (external approach) partially mediates its indirect effects on entrepreneurial opportunity recognition. The study contributes to the existing literature by bringing new insights into the entrepreneurial opportunity recognition process by focusing on a poorly represented factor in the literature, social media.

Highlights

Entrepreneurship is intrinsically related to entrepreneurial opportunities identification and exploitation [1]
This study was conducted with the aim of testing the effects of Social media on entrepreneurial opportunity recognition
The findings demonstrate once more that both the entrepreneurial alertness and social networks constructs positively influence entrepreneurial opportunity recognition, confirming other recent studies [8,9,10,29,35], while social media effects were found as being moderated by entrepreneurial alertness and social networks

Summary

Introduction

Entrepreneurship is intrinsically related to entrepreneurial opportunities identification and exploitation [1]. Entrepreneurial opportunity involves two processes, recognition and exploitation [1,2,3,4], with various studies exploring the mechanisms entrepreneurs use to recognize them [5,6]. The entrepreneurs have to innovate or introduce new products or services and, are willing to search for new ideas. They must gather, interpret and use information to recognize opportunities for their prospective businesses. In this vein, access to relevant information plays an important role in entrepreneurial opportunity recognition [7]. Various theories bring forward different determinants of entrepreneurial opportunity recognition process, with those emphasizing the personal characteristics of an entrepreneur, such as entrepreneurial alertness [8,9], and social networks [10] being dominant

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Conclusion