The role of networks in opportunity recognition in the tourism industry: insights from restaurateurs in Austria

Abstract

Social networks are drivers of opportunity recognition. However, far too little attention to the social networks and entrepreneurial opportunities is paid to the tourism industry. Besides that, recent development in societies is digitalisation. Digital transformation has drastically changed individuals lifestyles and entrepreneurial practices, unlocking novel connectivity and networking. This study draws on the social network theory to explore the effects of offline and online networks on entrepreneurial opportunity recognition in the tourism industry, specifically in the foodservice segment. The study uses a qualitative case study approach to collect data from restaurateurs in Austria. The empirical evidence reveals a two-dimensional effect of networks on opportunity recognition. The paper proposes an integrated framework to comprehend the nature of social networks in entrepreneurship. It provides a relevant theory for the tourism entrepreneurship process and education. The study also generates new applicable insights suitable for enhancing opportunity recognition ability, creating and operating high-growth-potential ventures.