The Antecedents of Opportunity Recognition: The Role of Perceived Self-Efficacy

Abstract

If opportunity recognition lies at the heart of entrepreneur-like behavior, then we need to better understand the antecedents of opportunity perceptions. Perceived opportunity was hypothesized as situational, depending on perceptions of competence. Results demonstrated: (1) perceived self-efficacy directly influences perceptions of opportunity and threat; (2) self-efficacy indirectly influences strategic risk taking through opportunity and threat perceptions; (3) effects are task-specific. Research design used experiments to manipulate task-specific self-efficacy. Self-efficacy changes were significant antecedents of changes in opportunity recognition and risk taking. Results suggest broad implications for managerial decision-making research (e.g., prospect theory).