Discovery Of Entrepreneurial Opportunities Research Articles

Entrepreneurial intention and the three stages of entrepreneurial action: a process approach.

The relationship between entrepreneurial intention (EI) and entrepreneurial action (EA) is a popular topic in entrepreneurship research, owing to the contribution of these constructs in the process leading to the entrepreneurial activity taking place. There are still countries that are recording high entrepreneurial intention levels in comparison to their corresponding entrepreneurial action levels that are low. This is a global concern to which South Africa (SA) is also not immune. Most of the research tests the relationship between two single constructs: EI and EA. Our study follows a process approach and investigates the effect of this relationship between EI and the three stages of EA. A quantitative method was employed and a survey utilized whereby data was collected among 597 entrepreneurs in South Africa. The data was analyzed through Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM). The EI construct is supported through the Theory of Planned Behavior, in conjunction with the Motivation Opportunity Ability theory. The Discovery Theory, together with the Creative Theory, supports each of the stages of EA, namely: entrepreneurial opportunity discovery (EODI); entrepreneurial opportunity evaluation (EOEV); and entrepreneurial opportunity exploitation (EOEX). Previous research regarding the relationship between EI and EA measured this relationship from a binary point of view. This study contributes to the entrepreneurship field by employing the process approach to determine the impact of EI on the stages of EA. This study reveals that EI is statistically significant in all three stages of EA. However, the strength of this relationship is found to be strong between EI and the EODI and EOEV stages and moderate between EI and the EOEX stage. Therefore, this study reveals that effective training interventions and development are necessary between EI and the EOEX stage of EA.

Rethinking intrapreneurship in the established MNE

AbstractResearch SummaryWe show significant variation in the ways mainstream international business strategy (IBS) theories have addressed the discovery and pursuit of entrepreneurial opportunities in the established multinational enterprise (MNE). We adopt an extended “individual—opportunity nexus” perspective and suggest a fourfold repositioning of IBS research on MNE intrapreneurship. First, by acknowledging opportunities in activity types not historically considered as the subject of intrapreneurship, such as imposed resource reconfigurations as well as acquisitions and divestitures. Second, by paying more attention to how bundles of opportunities emerge over time, and to their sequence. Third, by recognizing more systematically different opportunity types, ranging from incremental to radical. Fourth, by analyzing more thoroughly the origins of opportunities, including those that arise from MNE weaknesses.Managerial SummaryInternational business strategy (IBS) theories can help managers in multinational enterprises (MNEs) to better understand the unfolding of intrapreneurship. First, business decisions typically considered as merely cost‐driven, including resource reconfigurations, acquisitions, and divestitures, can involve major intrapreneurial opportunities. Second, opportunities do not just appear randomly and in isolation: it is typically bundles of opportunities that emerge over time and in a particular sequence, and these bundles are closely intertwined with the MNE's own strategy that may unearth these opportunities. Third, MNE executives need to recognize more systematically different opportunity types, ranging from incremental to radical because each will require different managerial practices. Fourth, it is not only an MNE's strengths but also its weaknesses that can drive intrapreneurial action.

Sustainable development through sustainable entrepreneurship and innovation: a single-case approach

PurposeThis paper aims to understand how a sustainable entrepreneur through his/her sustainable innovation can implement the three pillars of sustainable development, i.e. economic, social and environmental pillars, and how an entrepreneurial opportunity can be sought in environmental problems to develop a new product.Design/methodology/approachA qualitative research approach using a single-case study design has been adopted. It discusses the case of an Indian sustainable entrepreneur working for the cause of reducing plastic pollution in India and providing employment to rural women from economically weaker backgrounds. Data was primarily collected through semi-structured interviews, which were analyzed through thematic analysis.FindingsThe paper shows how an entrepreneur through entrepreneurial opportunity discovery and sustainable innovation contributes toward sustainable development.Practical implicationsThis study highlights the need for institutional support by governments for a wide spectrum of sustainable enterprises as they can help the governments in achieving sustainable development goals at local levels. It will also act as a representative example for the entrepreneurs about how one can covert an environmental problem into an opportunity, through sustainable innovation.Originality/valueThe originality of the study lies in the presentation of an innovative idea developed by the entrepreneur for addressing the problem of plastic waste. The case used here demonstrates that sustainable entrepreneurship, through sustainable innovation, can deal with multiple economic, social and environmental issues.

How Does Creativity Factor in Forming Entrepreneurial Opportunities?

Does creativity change in the absence of markets? Does forming entrepreneurial opportunities necessitate the existence of markets? What is the role of creativity in recognizing, discovering, and/or creating entrepreneurial opportunities? In this panel symposium we will debate whether the role of creativity is the same in discovery versus creation of entrepreneurial opportunities. The panelists are in three camps: the discovery camp, the creation camp, and the third – it does not really matter camp.

ФОРМИРОВАНИЕ КОНТУРОВ УПРАВЛЕНИЯ ПРОДУКТИВНОСТЬЮ РЕГИОНАЛЬНЫХ ПРЕДПРИНИМАТЕЛЬСКИХ ЭКОСИСТЕМ

The article discusses issues of a holistic approach to the study of entrepreneurship development at the regional level. The methodological basis of the study is the systematic approach and the concept of entrepreneurial ecosystems based on it, which is used to study entrepreneurship at the regional level. A general approach to defining the structural organization of a regional entrepreneurial ecosystem is presented, which involves the identification of four types of mutually integrated subecosystems: business ecosystems, innovation ecosystems, knowledge ecosystems and enterprise support (promotion) ecosystems. It is determined that the parameters of the development of subecosystems, their combination effect on the creation, discovery and use of entrepreneurial opportunities in the local spatial environment determine the productivity of the regional entrepreneurial ecosystem. It is justified that the proposed structuring gives a clearer view from the point of view of forming and setting up an enterprise productivity management system The approach presented in the article provides an understanding of the general logic of the functioning of the regional entrepreneurial ecosystem, which, in turn, allows the development and implementation of management tools that provide new opportunities for increasing the productivity of the regional entrepreneurial ecosystem

The effect of entrepreneurial orientation on new venture performance: Contingency roles of entrepreneurial actions

The performance implication of entrepreneurial orientation (EO) has been the subject of extensive scholarly discussions. However, its application to new venture firms remains unclear. This study examines the EO–performance relationship by drawing insights from the intention–behavior model to argue that the effect of EO on new venture performance is contingent on entrepreneurs’ actions (i.e., opportunity discovery, business networking, and institutional support seeking). This study tests this argument using structural equation modeling on a sample of 229 new ventures in a sub-Saharan African country. The findings show that entrepreneurial opportunity discovery fully mediates the relationship between EO and new venture performance and reveals how this indirect effect relationship is strengthened when business networking and institutional support increase. With these findings, the study advances knowledge in entrepreneurship research and provides insights into how entrepreneurial actions can enhance the relationship between EO and new venture performance.

Technology-based entrepreneurial opportunity discovery and development

Technology-based entrepreneurs in Latin America face different institutional environments and have less access to knowledge and resources than those in industrialized economies. Opportunity discovery and construction therefore follow also different paths. Results from a set of parallel case studies in Argentina, Colombia and Mexico, explore some differences in terms of the role of available technological and market knowledge, and in terms of the entrepreneur’s background. But also, strong similarities among these countries’ economic development, their R&D infrastructure, and their institutional environments, shape similar patterns in their entrepreneurs’ endeavours. These patterns have important public policy implications for promoting innovation in transitional economies.

Competitiveness analysis and evaluation of entrepreneurial ecosystems: a multi-criteria approach

The purpose of this paper is, to propose a methodology for the comparison and ranking of Entrepreneurial Ecosystems (EEs) in order to offer the decision maker a straightforward way of assessing the competitiveness of national economies. EEs are a coordinated set of individual and institutional agents, on the national level, aimed to pursue economic development through the discovery and exploitation of entrepreneurial opportunities. Among the various approaches found in EE research, the Global Entrepreneurship Monitor consortium evaluates the national economic development of more than 100 countries, concerning both individual and contextual factors. Entrepreneurship Framework Conditions of national EEs are rated on an annual basis by groups of domain experts on a number of predefined criteria. These ratings describe the various facets of the EEs, exposing strengths and weaknesses of the contextual environment, offering a snapshot of the competitiveness conditions of the national economy. However, comparative studies examining the relative performance of each EE, are needed in order to communicate useful information and help stakeholders make insightful decisions and design policy. The ranking of EEs as different alternatives based on multiple criteria is a Multi-Criteria Decision Making (MCDM) problem. The relative importance of each criterion is defined either by experts or by statistical methods. The selection of criteria weights is usually a cumbersome procedure. The utilization of non-weighted or equal weight methods, eliminates the need for definition of weights, it has less computational overhead and can produce distinct and objective rankings of the alternatives. The Greek EE is taken as a working example, and it is compared with a number of developed and developing countries, as alternatives. The consistence of the ranking results produced by the method proposed is compared with the evaluations of other EE metrics and the results of other well accepted MCDM methods. The application of the method produced a distinct ranking for each alternative EE. The Greek EE ranked below average among the countries of the comparison group, implying that it is less conducive for entrepreneurship development, although it is categorized among the most developed Innovation Driven economies. The theoretical and practical implications of the results are thoroughly discussed offering useful conclusions.

Entrepreneurial opportunity discovery dimensions and growth of non-governmental organizations in Kenya

Non-Governmental Organizations (NGOs) play a critical role in addressing social ills like poverty, employment, and food insecurity; therefore, their growth prospects enhance their ability to address these social ills. Discovery of entrepreneurial opportunities amongst the agro-based NGOs has not got the desired attention, and it is the least researched area in social entrepreneurship. This study investigated the relationship between Entrepreneurial Opportunity Discovery Dimensions and Growth of Non-Governmental Organizations in Kenya. It employed correlation design and was anchored on the Kirznerian Entrepreneurship Theory. The target population was 135 agro-based NGOs in Kenya. A mixed-method approach was used, combined qualitative and quantitative techniques. Statistical Package for Social Sciences (SPSS) version 21 and Analysis of Moment Structures (AMOS graphic-25) aided in the analysis. Structural Equation Modeling (SEM) using AMOS and Simple linear regression analysis were the primary analysis techniques used to evaluate the relationship between entrepreneurial opportunity discovery dimensions and the growth of NGOs. The results indicated that alertness0.372, p=0.033)and prior knowledge (0.163, p=0.031) have a significant favorable influence on growth, while social networks 0.047, p=0.713) showed an insignificant effect on the growth of NGOs. Investing in acquiring alert individuals and helping them gain relevant knowledge in the 21sttechnologies and emerging issues can lead to increased NGO ability to continue serving the community effectively and be engines of development for the general good of Kenya.

Understanding the Discovery and Creation of Entrepreneurial Opportunity through Alliances

Our study builds on the recent discussions on the varied conceptualizations of entrepreneurial opportunities and its implications on entrepreneurial actions. In our study, we examine how entreprene...

Emergence of an entrepreneurial opportunity: A case within a Finnish telecommunication international new venture

This article conducts an in-depth investigation of entrepreneurial opportunity recognition in an international new venture (INV) during the time period before the organizational emergence. While doing so, the study applies a strategic orientation (SO) approach that seems to provide the possibility of observing firm activities from multiple perspectives. A qualitative and interpretive method is used for this purpose. The findings of this study support the notion that the phase before organizational emergence is a significant period for entrepreneurial opportunity recognition. Additionally, this study illustrates the reason and processes involved are the same. Firstly, the findings indicate that the initial opportunity recognition and the development throughout this phase rely on the entrepreneurial orientation of the individuals. Moreover, entrepreneurial opportunity results from information-seeking behavior regarding ways to respond to demand. Such a process seems to require a reconciliation of technological and commercial knowledge domains. Secondly, the findings indicate that the context has a distinct role in the opportunity recognition process. In this study, the support of the parent corporation, particularly, seemed to have a significant impact on the initial discovery and subsequent development of entrepreneurial opportunity.

The impact of overseas human capital and social ties on Chinese returnee entrepreneurs’ venture performance

PurposeEntrepreneurship research clearly documents the importance of human and social capital and stresses the way in which entrepreneurs take advantage of their own social affiliations and network strategies in pursuit of their entrepreneurial goals, yet the research on returnee entrepreneurs’ human and social capital is not sufficiently studied in the international context, in particular when returnees’ overseas human capital and social capital may be a misfit with local business environment. Using the data from Chinese returnee entrepreneurs’ venture activities in China, the purpose of this paper is to examine the impact of returnee entrepreneurs’ overseas capital (human and social) and domestic capital (human and social) on their venture performance in China, and further explore the interaction effect of different social and human capital with China’s entrepreneurial environment.Design/methodology/approachThis study surveyed 500 start-up businesses created by returnee entrepreneurs in China to collect data. Self-administered questionnaires were used to collect data on their demographic information, the information about the human and social capital of these returnee entrepreneurs, including domestic and overseas capital, various performance measures, and other control variables ending up with 226 usable questionnaires.FindingsThe results show that Chinese returnee entrepreneurs’ overseas human capital and social capital, as well as their domestic social capital, but not domestic human capital, have a significant impact on their venture performance. In addition, while domestic entrepreneurial environment does not affect the impact of overseas human and social capital on venture performance, it does provide an important contextual setting for domestic capital to improve returnee entrepreneurs’ venture performance.Originality/valueThe findings help enrich the understanding of the dynamic interplays among Chinese returnee entrepreneurs’ domestic human capital and social capital, overseas human capital, and social capital, as well as the entrepreneurial environment for returnee entrepreneurs’ success, which makes an important contribution to the international entrepreneurship theory by showing that overseas human capital and social capital are not a misfit with local markets. It also provides empirical support for the mediating effect of entrepreneurial opportunity identification. The important role of entrepreneurial opportunity is empirically supported in an international context: entrepreneurship is all about the discovery of entrepreneurial opportunities and exploitation of this opportunity to create viable business entities for new products and services, even in the Chinese context, a culture which is very different from the ones where the entrepreneurship theory was developed.

Building networks into discovery: The link between entrepreneur network capability and entrepreneurial opportunity discovery

Social networking is increasingly important to entrepreneurs because it can help them to recognize valuable opportunities. A model of entrepreneur network capability concerning the agent role of nascent entrepreneurs in developing and managing social networks, which is further related to entrepreneurial opportunity discovery, is proposed in this study. Drawing on the tie generation and network management literature, we propose entrepreneur network capability as a four-dimensional construct, including network orientation, network building, network maintenance, and network coordination. A sample of 212 nascent Chinese entrepreneurs collected at two time points supported the positive relationship between network capability and opportunity discovery after controlling for entrepreneurs' prior knowledge, cognitive bias, and political skills. Further, the relationship was found to be mediated by enhanced network configuration (i.e., network centrality) and moderated by entrepreneurs' power distance orientations. Entrepreneurs' network capability exerted a stronger effect on opportunity discovery for those of low power distance. The implications of our findings are discussed.

Digital affordances, spatial affordances, and the genesis of entrepreneurial ecosystems

Research Summary: Entrepreneurial ecosystems command increasing attention from policy makers, academics, and practitioners, yet the phenomenon itself remains under‐theorized. Specifically, the conceptual similarities and differences of entrepreneurial ecosystems relative to, for instance, clusters, “knowledge clusters,” regional systems of innovation, and “innovative milieus” remain unclear. Drawing on research on industrial districts and agglomerations, clusters, and systems of innovation, we suggest that entrepreneurial ecosystems differ from traditional clusters by their emphasis on the exploitation of digital affordances; by their organization around entrepreneurial opportunity discovery and pursuit; by their emphasis on business model innovation; by voluntary horizontal knowledge spillovers; and by cluster‐external locus of entrepreneurial opportunities. We highlight how these distinctive characteristics set entrepreneurial ecosystems apart from other cluster types, propose a structural model of entrepreneurial ecosystems, summarize the articles in this special issue, and suggest promising avenues for future research.Managerial Summary: Entrepreneurial ecosystems command increasing attention from policy makers, academics, and practitioners. We suggest that entrepreneurial ecosystems differ from traditional clusters by their emphasis on the exploitation of digital affordances; by their organization around entrepreneurial opportunity discovery and pursuit; by their emphasis on business model innovation; by voluntary horizontal knowledge spillovers; and by cluster‐external locus of entrepreneurial opportunities. We highlight how these distinctive characteristics set entrepreneurial ecosystems apart from regional cluster phenomena discussed in received economic geography and innovation literatures. We suggest policy makers need to adopt novel approaches to stimulate entrepreneurial ecosystems that differ from those in place to develop industrial clusters or support already established small‐ and medium‐sized companies.

How to approach business model innovation: the role of opportunities in times of (no) exogenous change

Firms need to show dynamic adaptability and innovate their business models to achieve survival and growth, in particular when they are exposed to high levels of exogenous change. However, business model innovation also takes place in the absence of exogenous change. We know relatively little about firms’ approaches to opportunities for business model innovation in both of these environmental settings. The objective of this study is to understand how firms exposed to various environmental conditions explore and exploit business model innovation opportunities. In a qualitative multiple case analysis, the study compares the approaches to business model innovation used by four firms exposed to high levels of exogenous change with those of four firms operating in the absence of exogenous change. The findings are contrasted with entrepreneurial opportunity discovery and creation theories. The results reveal that firms exposed to high levels of exogenous change focus on discovering objective opportunities, whereas firms operating in the absence of exogenous change concentrate on creating opportunities for business model innovation. However, this study revealed that when the firms further explore and exploit these opportunities, they tend to combine the behaviours that the two opportunity perspectives suggest. This study contributes to the literature on business model innovation by emphasising the relationship between environmental context and approach to business model innovation and by reinforcing the link with entrepreneurship theory.

Governing the innovation commons

AbstractThis paper analyses the origin of innovation using institutional economic theory. Because of distributed information and fundamental uncertainty, an efficient institutional context for the economic organization of innovation in its early stages is often that of a common pool resource. The theory of theinnovation commonsdraws upon Hayek, Williamson and Ostrom to present the innovation problem as a combined knowledge problem, implicit contracting problem and collective action governance problem. Innovation commons theory also implies that Kirzner's model of entrepreneurial opportunity discovery extends to higher-order groups, suggesting a multilevel selection model of economic evolution.

Human Capital, Institutions, and Engagement in Entrepreneurship: A Multi-Level Study

In this paper, we examine how institutional environment influences individuals in their discovery and exploitation of entrepreneurial opportunities. Specifically, we investigate the effect of an individual’s level of education on the two critical phases of entrepreneurial process: opportunity discovery and exploitation. Further, we build on previous comparative international entrepreneurship research that focuses on institutions and the logics of structuration theory, and posit that various dimensions of a country’s institutional environment may have differing moderation effects on these relationships. We test our hypotheses on a multi-source dataset from 42 countries using a multi-level modeling technique. We find that an individual’s level of education is positively related to the discovery and exploitation of opportunities. Further, our findings indicate that the cognitive dimension of a country’s institutional environment moderates the relationship between individual-level human capital and the discovery of entrepreneurial opportunities, whereas normative and regulatory institutions mainly affect the relationship between individual-level human capital and the exploitation of entrepreneurial opportunities.

Are Entrepreneurs Born or Made? A multilevel, cross-national perspective

Among the most substantial drivers for the discovery and exploitation of entrepreneurial opportunities is acquiring proper capabilities on the part of the entrepreneur. As such, entrepreneurial sel...

Build Network before use it: Entrepreneur Network Capability and Opportunity Discovery

We developed a model of entrepreneur network capability concerning the agent role of nascent entrepreneurs in developing and managing social network, which is further related to entrepreneurial opportunity discovery. With a process perspective, we proposed entrepreneur network capability as a four-dimension construct including network orientation, network building, network maintenance and network coordination. A sample of 212 nascent Chinese entrepreneurs collected at two time points supported the positive relationship between network capability and opportunity discovery after controlling for entrepreneur prior knowledge, cognitive bias and political skills. Further, the relationship was found to be mediated by enhanced network configuration (i.e. network centrality) and moderated by entrepreneurs’ power distance orientation (whether they are willing to accept the unequal distribution of social status). Entrepreneur network capability exerted stronger effect on opportunity discovery for low power distance entrepreneurs. Implications of our findings were discussed.

Three Dimensional Printing

This case describes how eight entrepreneurs discover different opportunities for new businesses to exploit a single technological invention. The case focuses on the process of entrepreneurial discovery and its implications for the creation of new firms. Many of the teaching materials on entrepreneurship assume that entrepreneurs have already discovered an opportunity. While these materials provide useful information about the process of creating new enterprises, they miss the crucial first step in the entrepreneurial process: identifying an opportunity. The case illustrates the theoretical concept of the role of information in the discovery of entrepreneurial opportunities. It can be used in a class on entrepreneurship or management of technology.