The Emergence of a Market: What Efforts Can Entrepreneurs Make?

Abstract

This chapter, using a complex adaptive systems (CAS) approach, models how entrepreneurs create markets for a new, disruptive, technology through an effectuation process. Starting from dispersed knowledge components held by both the demand and supply sides, a market emerges from the interactive learning behaviours of entrepreneurs and potential customers. The CAS approach enables investigation of both system-level emergence and the process of dynamic co-evolution at the individual level. The results indicate that the process of market creation is significantly impacted by factors including exploration tendency, alertness, and participant prior knowledge.