The Role of Cognition and Information Access in the Recognition of Innovative Opportunities

Abstract

This research examines nascent entrepreneurs’ perceptions about the innovativeness of the opportunities they have recognized. Results from a survey of 324 nascent entrepreneurs in Taiwan indicate that one's level of prior industry experience, orientation toward risk, and access to information in the environment are each associated with perceived innovativeness of the opportunity. An examination of interaction effects shows that when prior industry experience is low, risk taking propensity boosts the level of perceived innovativeness, but does not have an effect in the case of high industry experience. The findings suggest that cognitive elements and information access can play a role in the identification and pursuit of innovative opportunities.