Opportunity Identification Process Research Articles

What conditions favor high-potential entrepreneurship? Unpacking the nexus between the industrial structure and startup typologies

In this paper, we question the implicit assumption that more entrepreneurship drives more innovation and growth, asserting that specific typologies of entrepreneurship are responsible for these phenomena. A growing number of studies has analyzed this relationship while focusing on the overall level of entrepreneurship. This paper exploits recent advancements in measuring the sophistication and connectedness of economic systems, brought by the notions of economic complexity and relatedness, to study the nexus of industrial structure and high-potential forms of entrepreneurship. The present study uses a panel dataset for Italy for the period 2015–2019. The results show a differentiated pattern among the high-potential startups considered, with relatedness and complexity having a positive effect for innovative startups, a negative one for high-growth startups, and no effect for pioneers. These results inform potential entrepreneurs of the importance of analyzing how external conditions can have distinctive effects on the process of opportunity identification among different typologies of high-potential startups.

Magnetic Signature of Gold Deposits: Example from Um Garayat Region, South Eastern Desert, Egypt

Magnetic methods of exploration have proved to be efficient and have potential in the gold mineralization industry. New magnetic processing technologies aid in improving the process of interpretation and gold opportunity identification. In this work, we show the possible application of combined digital magnetic filters to explore new gold mineralization localities with application to a well-known Au mineralization zone. Um Garayat (UG) region, southeastern desert, Egypt, is an ancient example of a potential area for gold mining. Modern analysis showed that other types of mineral concentrations are present. So, exploiting the magnetic signature of the area for future investment is of great interest. The old UG gold mine is characterized by volcanic and tectonic features such as faulting and folding that affect the arc sedimentary rock sequence of repeated deformation stages. A thorough geophysical effort has been carried out around the old gold mine in the UG area to explore the extension of mineralized ore deposits. A detailed geophysical survey using magnetics was carried out in this study together with the available aeromagnetic data. Field data sets on appropriate sites were measured, processed, and evaluated by suitable software. High magnetic anomalies were detected based on grid filter analysis and contact occurrence maps as marked as possible ore deposits after satisfying the geologic conditions for gold formation. An integrated understanding of attained results revealed that the new possible ore deposits are related directly to fault and fracture zones in the shape of lenses of variable thickness in this zone. Results show that newly detected mineral occurrences in the UG area are also controlled by major faults and hydrothermal solution enrichment along fault zones at a depth ranging from 20 to 70 m. Favorable fault/joint mineralized places were located. The relationship between the Au-quartz vein's strike direction compared with magnetic anomaly lineament analysis was studied. Search for new sources of Au and other mineral deposits in addition to quartz veins is needed as pockets of accumulated mineral-rich rock fragments are deposited in drainage wadis and fault/joint zones because of hydrothermal solution enrichment.

Opportunity Identification Training and the Form of First-person Opportunity Belief

In this research, we argue that opportunity identification training is a training of self-regulated learning, and investigate the impact of training on forming first-person opportunity beliefs. Drawing on the theory of self-regulated learning, we suggest that feedback seeking behavior is a central mechanism through which training takes effects, and individuals’ metacognition and engagement are important moderators affecting the training outcomes. We conducted a two-stage field experiment with 152 working professionals aspiring to become entrepreneurs and found support for our predictions. Our findings shed new light on research about entrepreneurship training, and research about opportunity identification processes.

Women entrepreneurs’ opportunity identification of digital platform start-ups: emerging evidence from South Africa

PurposeCognitive drivers of opportunity identification and development are important in entrepreneurship. This study examines antecedents of opportunity development among women founders of digital platform start-ups, defined as technology-mediated sites that facilitate user interactions, processing of transactions or other innovative practices. The opportunity identification and development literature framed our exploration of drivers into digital entrepreneurship among women in a middle-income economy, an area under-represented in prior research.Design/methodology/approachThis research uses in-depth interview data with women founders of five digital platform start-ups in South Africa. The authors supplemented primary interviews with secondary data from a global big data site to provide context for how investors are funding women-owned start-ups in the country.FindingsEntrepreneurs’ heightened alertness to opportunity developed from a confluence of factors such as personal values, impatience at the slow pace of change in post-Apartheid South Africa, corporate ennui and building for-profit business models driven by social purpose. Respondents had multiple identities, including gender, culture and generation that influenced their development as entrepreneurs and their adoption of digital platform strategy for start-up ventures.Research limitations/implicationsMultiple factors influence women entrepreneurs during the opportunity identification and development process as they enact the creation of digital platform start-ups. The authors recommend additional research linking opportunity identification and development to gender in emerging markets.Practical implicationsSouth Africa is witnessing the emergence of women-owned digital platform start-ups that attract risk capital investment. These entrepreneurs are university educated and use prior corporate experience to create growth-oriented companies that government should support.Originality/valueThe study contributes to opportunity identification theory building based on context, specifically how the concepts and strategies can inform new models that include women entrepreneurs.

Sasta Bhojan Sewa: the pricing dilemma

Learning outcomes After studying this case, students should be able to: understand the process of opportunity identification for forming social enterprises (knowledge), discuss various concepts related to social entrepreneurship and not-for-profit firms (comprehension), apply tools to differentiate between social and commercial enterprises (application), analyze the role of environmental factors like culture in influencing business (analysis) and develop decision-making skills by critically evaluating the options (evaluation). Case overview/synopsis Sasta Bhojan Sewa (SBS) was one of the key projects of Parupkar Sewa Society. The social venture initiated by Jaswinder Singh, a young resident of Ambala (a small town in Haryana, India), got registered as a not-for-profit society in the year 2018. Mr. Singh initiated various social welfare projects since the year 2006 when he got inspired from the history of Sikh Gurus. As years passed, he was able to employ more and more people. This led to the development of a social venture, which had 33 employees at the end of the year 2019. The society was running seven major projects with the help of dasvandh (donations). Project SBS was about providing home-like hygienic meals to people at merely INR10. There were 11 canteens in Ambala city and cantonment, which were being run under that project. Around 1,500 people were eating daily in those canteens, out of which around 70–80 people were not able to pay even INR10. The project had employed 30 people. The salaries of the staff and other operating expenses like liquid petroleum gas (LPG) expense, transportation cost and electricity were met through dasvandh (donations) from the local households. When the project was initiated, the cost of preparing a meal was INR10, but by the end of 2019, the cost went up to INR12 per meal due to food inflation. The meal was still being sold at INR10 at a loss of INR2 per meal. On December 28, 2019, as founder of the society, Mr. Singh was thinking of raising the selling price to INR12 per meal, which had to be implemented on January 01, 2020 but he was doubtful in doing so. He thought increasing the price might defeat the purpose of starting SBS as he was reflecting on how poor people were and how each rupee mattered to them. He was also considering that it might affect the goodwill of the society that was known for selling food at an extremely low price. By using the example of SBS, we explain various concepts of not-for-profit social enterprises like opportunity identification, key drivers, business model canvas and environmental effects in this teaching note. The teaching note also provides cost–benefit analysis of the available options to facilitate effective decision-making. Complexity academic level Undergraduate and graduate-level business programs. Supplementary materials Teaching notes are available for educators only. Subject code CSS 3: Entrepreneurship.

The Effects of Post-Colonialism on the Entrepreneurial Opportunity Identification among Family Firms

This is a conceptual paper that attempts to explore, highlight and determine the existing effects of post colonialism in colonized countries in relation to Entrepreneurial Opportunity Identification process. Three pre-existing post-colonial theory views, Individual, National and World view have been used to develop understanding to comprehend and view accordingly the existing attributes of Entrepreneurial Orientation and Opportunity Identification in Family Firms. Family Firms are one of the major contributors in the global income generation and that is why it is imperative that we take the effects and relational lap that may exist in Family Firms businesses. Attempting to highlight the allegedly ignored spectrum of the effects of Colonialism on Proactiveness, Innovation and Risk-Taking which are fundamental to Entrepreneurial Opportunity and Orientation, we draw inferences to find the commonalities and effectual relations that are present. This study shall be highly beneficial in the domains of management, Entrepreneurship, especially Corporate Entrepreneurship and HR practices.

The micro-foundation of ambidextrous opportunity identification in international expansion

This study builds upon social cognitive theory and the research on micro-foundations to elaborate on how, and under what conditions, multinational enterprises (MNEs) identify various international opportunities (e.g., ambidextrous and non-ambidextrous opportunities). Using a qualitative approach, this study develops a theoretical framework for explaining the international opportunity identification behaviour in the empirical context of Chinese MNEs. The findings establish cognitive mechanisms enabled by international management teams relevant to international opportunity identification and clarify the specific constituents of self-efficacy in the ambidextrous opportunity identification process. We discuss theoretical and practical implications of findings for the international business literature.

An Alternative Perspective on Social Opportunity Identification and New Social Venture Ideation

One fundamental concept at the heart of entrepreneurship research is that of the opportunity, or in the case of social entrepreneurship, the social opportunity. Although attempts at defining the process of social opportunity identification have been made, the explanatory power of these models was found to be lacking. Recognizing that the study of commercial entrepreneurial opportunities has experienced some of the same ‘growing pains’, I turn to three well-known paradigms in that literature stream that have offered promising insights into the process of opportunity identification or development. Drawing on and integrating these models, I attempt to develop a framework for social opportunity identification, and I further incorporate additional elements that are salient and unique to the study of social opportunities and social venturing. The outcome is a framework that overcomes the dichotomization of social opportunities into ‘creation’ and ‘discovery’ opportunities, and allows for propositions to be developed about the process of new social venture ideation and the types of new social venture ideas that arise from the process. Several propositions are offered which demonstrate the model’s functionality, and possibilities for future work and extensions are also offered.

Identifying business opportunities for sustainable development: Longitudinal and experimental evidence contributing to the field of sustainable entrepreneurship

AbstractWhich factors facilitate the identification of business opportunities for sustainable development? To answer this question, we develop a process model of sustainable opportunity identification. We argue that sustainable opportunity identification is a process with transitions from problem to solution identification and from solution to sustainable opportunity identification. Moreover, the transitions are facilitated by two factors—awareness of adverse consequences and entrepreneurial attitude—providing motivation and direction in the process. We tested our model in a field study (N = 107) and two experiments (N = 53 andN = 69). Our findings show that awareness of adverse consequences and entrepreneurial attitude influence the process of sustainable opportunity identification, explaining under which conditions people are more likely to identify business opportunities for sustainable development. Our study thus contributes to the field of sustainable entrepreneurship.

LEARNING STRATEGIES OF HIGH-TECH ENTREPRENEURS ABOUT BUSINESS OPPORTUNITIES

This two-phase, sequential mixed methods, utilising a qualitative, followed by a quantitative study was conducted with 178 high-tech entrepreneurs based in Israel. The study focuses on how entrepreneurs learn about business opportunities and explores the factors that affect the way they do it. A conceptual model is presented and then empirically tested. The results show that entrepreneurs learn strategically about business opportunities. Six learning strategies were identified as relevant to the process of opportunity identification. Prior knowledge of foreign markets was found as the most significant factor, while cognitive style was found to moderate the strength of the relationships between prior knowledge and the learning strategies. Entrepreneurs can benefit from these findings by recognising that they have a battery of learning strategies, which are relevant to the opportunity identification process. The identification of six learning strategies that are relevant to the process of opportunity identification is unique to this study.

Learning strategies of high-tech entrepreneurs about business opportunities

This two-phase, sequential mixed methods, utilising a qualitative, followed by a quantitative study was conducted with 178 high-tech entrepreneurs based in Israel. The study focuses on how entrepreneurs learn about business opportunities and explores the factors that affect the way they do it. A conceptual model is presented and then empirically tested. The results show that entrepreneurs learn strategically about business opportunities. Six learning strategies were identified as relevant to the process of opportunity identification. Prior knowledge of foreign markets was found as the most significant factor, while cognitive style was found to moderate the strength of the relationships between prior knowledge and the learning strategies. Entrepreneurs can benefit from these findings by recognising that they have a battery of learning strategies, which are relevant to the opportunity identification process. The identification of six learning strategies that are relevant to the process of opportunity identification is unique to this study.

The role of the organization in the entrepreneur–opportunity nexus

PurposeEntrepreneurial and strategic actions are crucial for wealth creation, and the business opportunity is a critical factor in this process. The purpose of this paper is to explore the role of the firm’s strategic posture in the relationship between individual alertness and opportunity identification within an existing firm. This approach contributes to entrepreneurship theory building through a multilevel study.Design/methodology/approachThe quantitative research focuses on understanding the mediating role of an organization’s strategic posture in the opportunity identification process. Using a sample of 276 firms, this study tests a two-level model to explain opportunity identification.FindingsThe findings provide empirical evidence that a firm’s strategic posture mediates the relationship between individual alertness and opportunity identification. Furthermore, this study finds differences in the mediating role of a firm’s strategic posture through which entrepreneurs and managers affect opportunity identification. Years after the creation of startup, the entrepreneurs still exhibit entrepreneurial characteristics that affect opportunity identification. The findings provide evidence that entrepreneurs foster an internal culture and set of values that are more favorable to radical innovation, compared to managers who favor incremental and less risky projects.Practical implicationsThe findings suggest the possibility for new theory building that can improve the fields of entrepreneurship and management research. Moreover, the proposed model constitutes a new approach to analyze the mediating role of an organization’s strategic posture in the opportunity identification process.Originality/valueThis paper provides an original approach to literature in exploring the relationship between entrepreneurial alertness and firm’s strategic posture in explaining the opportunity identification process. This work will help expand the theory building that explores differences between managers and entrepreneurs in organizations.

Technology-based business opportunity identification in a Latin American country

In recent years, the number and quality of entrepreneurial projects that pursue technology-based business opportunities in Latin America, specifically in Mexico, have been growing. To support such efforts, it is important to understand the process through which entrepreneurs discover and create a technology-based business opportunity with the available resources as well as its similarities and differences regarding those processes in industrialized economies. This research analyzes technology-based business opportunity identification processes in Mexico and compares it with what is reported in the specialized literature about such processes in industrialized economies. The findings are based on content analysis of eight in-depth interviews applied to technology-based entrepreneurs. Specific contributions are discussed for the analysis of the Latin American innovation ecosystems and to the available theory about technological business opportunity identification processes. The main contribution to the specialized literature is the identification of patterns in the technology-based opportunity discovery process in contexts where knowledge resources and infrastructure are less abundant than in industrialized economies. The results illustrate the importance of the processes and skills that technology entrepreneurs must deploy to gain knowledge they know exists and those they need to master in order to take advantage of knowledge-based economic opportunities.

Being alert: bridging theory and practice in public sector entrepreneurship

PurposeStudies on entrepreneurship in public agencies suggest that managing for innovation may increase organizational performance. These studies, however, do not take into consideration the processes of opportunity identification. Therefore, the purpose of this paper is to, first, situate the concept of opportunity identification within the broader research on public sector entrepreneurship, and second, to explore the relationship between managerial empowerment practices and employee alertness to new opportunities.Design/methodology/approachThis paper uses aggregated data from the Federal Employee Viewpoint Survey – an annual survey of the US Federal employees – to examine the relationship between managerial empowerment practices and employee alertness. The analysis employs a fixed-effects regression to model each panel of the US Federal agencies, from 2011 to 2017.FindingsThe results indicate that managerial empowerment practices have a clear correlation to employee alertness and are substantively different from empowerment practice’s relationship to “innovation” – an outcome of entrepreneurship. These findings suggest that scholarship should include opportunity identification as a moderating variable in future studies on public sector entrepreneurship.Research limitations/implicationsThe empirical analysis should be viewed as a novel approach to alertness in order to demonstrate the need to include opportunity identification processes in studies on managing for public sector entrepreneurship. Consequently, the results are not generalizable to all public agencies.Originality/valueThis paper highlights processes of entrepreneurial opportunity identification concerning management practices in the public sector, which scholarship has traditionally ignored.

Internal factors influencing effective opportunity identification in a Tongan social enterprise

In this paper we assess the internal factors that influence effective opportunity identification in a social enterprise. Although previous studies have identified personal and organizational characteristics that may spur the search for new venture opportunities, there has been little research to assess the controllable factors that lead to sustainable outcomes. The need for greater understanding is particularly important in the context of enterprises affected by climate change and other macro-environmental challenges. We address this knowledge gap through thematic analysis of 15 semi-structured interviews with key stakeholders associated with the Tongan National Youth Congress. This organization helps young people in the small, climate-threatened south Pacific island country of Tonga to develop micro-enterprises. Our findings suggest that more creative entrepreneurial and marketing approaches need to be tempered by more analytical business management approaches if organizations are to identify opportunities that they can effectively and sustainably exploit using their own resources and those of partner organizations. Entrepreneurs need to ask ‘how can we make this idea viable?’ early in the opportunity identification process, rather than later. We recommend further qualitative and quantitative studies be undertaken using larger samples in other contexts to improve the generalizability of links between creative and analytical capabilities and effective opportunity identification.

Opportunity discovery and creation in social entrepreneurship: An exploratory study in Mexico

Building on the literature on opportunity identification among commercial entrepreneurs, we propose a conceptual framework for the opportunity identification process in social entrepreneurship that includes both opportunity discovery and opportunity creation. We develop scales to measure these constructs and examine their validity and reliability. In addition, we develop and test hypotheses explaining the causes of opportunity discovery and opportunity creation. Our results confirm that opportunity discovery and opportunity creation are mutually exclusive constructs. We also find support for the role of radical innovation and information search in the opportunity identification process in a sample of Mexican social entrepreneurs.

Analysing the Role of Framework Conditions Influencing International Entrepreneurial Opportunity Identification Process

Objective: The objective of this paper is to determine and analyse the framework conditions that influence the entrepreneurial opportunity identification and action in the international market context . Research Design & Methods: Scholars from the International Business and International Entrepreneurship (IE) research fields agree that the process of internationalisation is triggered by opportunity identification. The extant literature is reviewed by assessing the framework conditions that domestic and international markets offer for entrepreneurial actions. An analytical juxtaposition of the influential factors is conducted in the light of various stages of the opportunity identification process by examining − at each stage − possible effects of domestic and international market context. Findings: This paper brings into the IE discussion a conceptual matrix of various elements and factors − external conditions – which influence the creation of nexus by entrepreneurs to the markets . Implications & Recommendations: The conceptual matrix offers new insights for theoretical development and arguments for designing empirical research in terms of external conditions. It is expected to provoke more theoretical and practical questions from scholars within the IE field. Contribution & Value Added: The originality of this work lies in proposing a comprehensive framework to understand how context interacts with the entrepreneurial opportunity identification process.

"Entrepreneurial Alertness, Metacognition, and Opportunity Identification"

The research study investigates factors that influence entrepreneur’s ability to identify new venture opportunities. Entrepreneurial alertness has been widely argued as fundamental to the opportunity identification process, yet this relationship remains largely unverified by empirical evidence. This study provides an explicit investigation into the implications of entrepreneurial alertness for opportunity identification as well as how metacognitive factors moderate the proposed relationship by employing state of the art measures along with a sample of early stage entrepreneurs. The research findings have many important implications and also highlight opportunities for future research focused on opportunity identification.

Is Luck a Determinant in Achieving Sustainable Entrepreneurial Opportunity?: A Theoretical Perspective

The entrepreneur is the engine of economic growth of a nation. Many individuals aspiring to be entrepreneurs lack the ability to conceive ideas. Although they are motivated and have the financial resources to start-up ventures they are disillusioned as to where and how opportunities are found. The cultural norms of civil society in Sri Lanka being over reliant on astrology, imposing patterns on random data, and luck have an impact on identifying and exploiting entrepreneurial opportunities. There exists a two-world view of the notion of luck that being psychological and philosophical luck, from a psychological perspective this involves the entrepreneurs’ perception of events and people. The philosophical domain focuses on morality and epistemic luck.The purpose of this review is to analyse the importance and role of the phenomenon of luck in identifying entrepreneurial opportunities and its impact on established opportunity identification processes associated with the economic school, cultural cognitive school and the socio-political school. This is achieved by exploring the scope and limitations of the systematic variations in randomness in opportunity identification by adopting a systematic literature review of the established theories of opportunity identification in relation to the psychological and philosophical notion of luck. This study clarifies the misconceptions surrounding the notion of luck in the identification of entrepreneurial opportunities and limitations imposed by the phenomenon of luck in achieving sustainable opportunity identification.

The Entrepreneurial Alertness of Immigrant Entrepreneurs in South Africa

Immigrant entrepreneurship contributes to employment creation, poverty alleviation and economic growth in their host countries. The survival rate of immigrant businesses is low. Opportunity identification is one of critical success factors of small firms. The study investigated the entrepreneurial alertness of immigrant entrepreneurs in South Africa. Entrepreneurial alertness is one of the factors driving the opportunity identification process. The empirical approach consisted of data collection through the use of self-administered questionnaire in a survey. The Cronbach’s alpha was used as a measure of reliability. Descriptive statistics was used for data analysis. The study focused on three dimensions of entrepreneurial alertness. These are scanning and search, association and connection and evaluation and judgment. The results indicated that immigrant entrepreneurs scan and search for information, are involved in association and connections and also evaluate and judge opportunities. On the average, the results suggested a good level of entrepreneurial alertness by immigrant entrepreneurs. DOI: 10.5901/mjss.2014.v5n23p722