Delineating competency and opportunity recognition in the entrepreneurial intention analysis framework

Abstract

PurposeThis study aims to delineate opportunity recognition as a competency from opportunity recognition as an outcome in the form of ideas and opportunities. In addition, a model was developed to examine the antecedents that lead to opportunity recognition competency, the intention to be an entrepreneur and finally, the actual number of ideas and opportunities discovered.Design/methodology/approachThis study adopted cross-sectional design and collected quantitative data from a total of 247 randomly selected final year students from two private universities in Malaysia. Partial least squares structural equation modelling was applied to test the associations.FindingsStudy revealed that opportunity recognition competency and ability to develop ideas or exploitable opportunities are distinct constructs. Students with high competency in recognising opportunities are interested to be an entrepreneur but are not necessarily prepared with tangible ideas or exploitable opportunities. Absorptive capacity, entrepreneurial alertness and entrepreneurial knowledge were found to be significant predictors of opportunity recognition competency.Practical implicationsFirstly, in managing outputs of entrepreneurship education and trainings, opportunity recognition competency and number of ideas and opportunities should be separately and explicitly measured. Secondly, entrepreneurial alertness and entrepreneurial knowledge must be emphasised in entrepreneurial education or training on guiding students to be alert to information and honing their opportunity recognition competency skills through active search techniques.Originality/valueThis study is one of the few studies that clarify and empirically distinguish the concept of opportunity recognition as competency from opportunity recognition as an outcome in the forms of ideas and exploitable opportunities.