Opportunity Recognition Process Research Articles

Industry Differences in Opportunity Recognition

This exploratory study examines differences in opportunity recognition by industry. A sample of 142 entrepreneurs completed a detailed questionnaire. Certain differences by industry were in the product, firm and respondents’ characteristics as well as in opportunity recognition processes, especially in regards to innovation and level of creativity. In addition, there was a very clear, significant relationship between level of creativity and the number of opportunities identified and pursued across industries. The implications of this is that future research that involves creativity, such as using the creativity‐based model provided by Lumpkin et al. (2003), should include industry in the analysis.

Opportunity recognition and product innovation in entrepreneurial hi-tech start-ups: a new perspective and supporting case study

As a key early stage in the formation of an entrepreneurial venture, there has been much recent interest in opportunity recognition as a field of academic study. Although early theorists proposed a holistic approach to the study of venture creation, much of the literature has been dominated by studies focussed on one or two components in isolation. Much of this historical research has an exclusive focus on the role of the entrepreneur or on knowledge within the firm. Such an exclusive focus can be misleading as it fails to consider the nature and dynamics of the inter-relationships taking place in high-tech firms. This paper seeks to synthesise the available literature into a more complete and integrative model of opportunity recognition in high-tech start-ups. We propose opportunity recognition to be a complex, interactive process involving three main components, the founding entrepreneur, the knowledge and experience of the firm and technology. A case study is used to demonstrate the nature of the component interactions. It is argued that more widespread use of the qualitative research can reveal new insights into the complex and interactive process of opportunity recognition in the high-tech start-up.

A MODEL OF THE ENTREPRENEURIAL OPPORTUNITY RECOGNITION PROCESS

The goal of this study is to propose a model of the entrepreneurial opportunity recognition process. A number of research propositions was generated based on the analysis of the available literature, and then validated by the analysis of in-depth cases of opportunity recognition that resulted in the creation of successful entrepreneurial ventures. The study indicates that entrepreneurial opportunities are discovered through recognition rather than purposeful search; prerequisites for successful opportunity discovery are a combination of entrepreneurial awareness, access to extended social networks, and prior knowledge of markets and customer problems; prior knowledge could exist due to work experience, personal, non-work related experiences and events, or due to relevant to these markets education. Further, opportunity recognition does not require an exceptional level of creativity, and is not likely to involve a prior knowledge of the ways to serve markets.

Examining the role of social network size and structural holes

This study examines the importance of social network size and structural holes within the network to the entrepreneurial opportunity recognition process.

Towards an Understanding of “Opportunity”

The understanding of what constitutes an opportunity is a key factor of business life, whether it occurs at the start-up of a business by a sole entrepreneur, in the development of growth strategies, or in maintaining corporate momentum in the well-established business. Because the recognition of business opportunity is fundamental to the entrepreneurial process and to successful marketing in the established business, this paper probes the meaning of “opportunity”, and examines the nature of the opportunity recognition process. It proposes that opportunity recognition forms one of the basic continuums between “marketing” and “entrepreneurship,” and is a useful basis on which to analyze and understand the marketing/entrepreneurship interface and its application to teaching business students.