Opportunity Recognition Framework: Exploring the Technology Entrepreneurs (original) (raw)
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The impact of social networks on technology entrepreneurs' opportunity recognition process
2019 7th International Conference on Information and Communication Technology (ICoICT), 2019
The purpose of this study is to examine the relationships of the weak ties network and entrepreneurial opportunity recognition of small technology firms in Malaysia. The study seeks to explore the gaps between the practice of networking among new start-up firms and industry. This paper employs quantitative research design involving self-reporting questionnaires. Founders and co-founders of technology companies (n=255) are surveyed as respondents and data collected are analysed using Partial Least Squares-Structural Equation Modeling (PLS-SEM) technique to examine the reliability, goodness-of-fit, predictive strength, and strength of relationship of independent and mediating variables with the dependent variable. Findings show that weak ties affect the entrepreneur's ability to recognise opportunity. Entrepreneurs who possesses wider social contacts benefits from a wide array of information which plays a key role to opportunity previously not recognised either due to lack of information or resources to exploit. To identify opportunities, a weak tie network is best suited to spark the imagination of entrepreneurs in novel ideas. In practice, the use of networking programs in entrepreneurial and incubation initiatives needs to focus on networking heterogenous groups. The clear delineation of the opportunity construct within the entrepreneurship studies enables progress to be made in building a clearer opportunity recognition framework. Empirical results also support the presence of entrepreneurial alertness as the mediator in the model.
Potential for opportunity recognition along the stages of entrepreneurship
The study primarily verifies whether ORP differs in stages of entrepreneurship and aims at identifying factors that influence ORP in different stages of entrepreneurship. The stages of entrepreneurship include pre-stage (individuals planning to start ventures), early-stage (entrepreneurs with ventures less than 3 years old) and late-stage (entrepreneurs with ventures more than 3 years in existence). The factors that were studied include personal factors (cognitive style, self-efficacy and motivation) and interpersonal factors (bridging social capital and bonding social capital). The results indicate the influence of different factors in different stages of entrepreneurship.
A Brief Review of Opportunity Recognition in Entrepreneurship Research
Entrepreneurship is multidimensional in nature. The purpose of this paper was to gather and summarize the plethora of research on opportunity recognition and revealed the constructs specific to entrepreneurial opportunity recognition along with its antecedents and consequences. The study was based on the literature review of entrepreneurial opportunity recognition with emphasis on the leading prominent literature from authentic and well-reputed journals. This study employed the strategy majorly based upon empirical data over the last two decades i.e. 2000-2020. This review indicated that the field is empirically underdeveloped and numerous inconsistencies are existent in research conclusions. The study summarized the phenomenon of opportunity recognition which is referred to as the self-defined field of research. Moreover, the study suggested future research directions to recognize and exploit the business opportunities.
A theory of entrepreneurial opportunity identification and development
This paper builds on existing theoretical and empirical studies in the area of entrepreneurial opportunity identification and development. It utilizes Dubin's [Theory Building, (second ed.). Free Press, New York, 1978.] theory building framework to propose a theory of the opportunity identification process. It identifies entrepreneur's personality traits, social networks, and prior knowledge as antecedents of entrepreneurial alertness to business opportunities. Entrepreneurial alertness, in its turn, is a necessary condition for the success of the opportunity identification triad: recognition, development, and evaluation. A theoretical model, laws of interaction, a set of propositions, and suggestions for further research are provided. D
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This paper investigates the effects of social media on entrepreneurial opportunity recognition. Combining the internal and external approaches of opportunity recognition, the study analyzes how social media influences the entrepreneurs in discovering new entrepreneurial opportunities. Structural equation modeling was used in this study, using the variance-based partial least squares (PLS)–structural equation modeling (SEM), on a sample of 354 entrepreneurs. We concluded that social media directly and positively influences entrepreneurial opportunity recognition while entrepreneurial alertness (internal approach) and social networks (external approach) partially mediates its indirect effects on entrepreneurial opportunity recognition. The study contributes to the existing literature by bringing new insights into the entrepreneurial opportunity recognition process by focusing on a poorly represented factor in the literature, social media.
International Review of Management and Marketing, 2017
The purpose of this paper is to expand upon existing entrepreneurial opportunity recognition model (EORM) that builds on the existing theoretical literature, utilises the Dubin’s theory-building framework. It identifies entrepreneurial awareness and viable business plan as the determinant of entrepreneurial success within the process opportunity recognition (OR) and exploitation. Entrepreneurial awareness is the central component of OR process. Entrepreneurial awareness and viable business plan, are the basic condition for the success of the OR and exploitation process which in turn yielding a successful entrepreneurial outcome. A proposed conceptual model, a set of propositions, and suggestions for further research are provided.
The Influence of Social Capital on Entrepreneurial Opportunity Recognition Behaviour
2011
The role of micro, small and medium enterprises in a developing nation’s economy is indeed significant. An entrepreneur is the lifeline of small enterprises. Opportunity recognition is a central concept in Entrepreneurship literature. Though researchers have tried to explore the influencers of Opportunity Recognition Behaviour, there is no conclusive answer yet. The researchers are interested in understanding the extent of influence of social capital on Opportunity Recognition Behaviour in Indian environment. This study explores individually the three dimensions of social capital and its influence on the five components of Opportunity Recognition Behaviour of an entrepreneur. 117 Indian entrepreneurs of micro, small and medium enterprises (MSMEs) which are engaged in Information Technology and Information Technology Enabled Services (IT& ITES) and who are members of well known professional organisations, formal or informal business forums are studied to meet the research objectives....
Entrepreneur behaviors, opportunity recognition, and the origins of innovative ventures
Strategic Entrepreneurship Journal, 2008
This study traces the origins of innovative strategies by examining the attributes of 'innovative entrepreneurs.' In an inductive grounded theory study of innovative entrepreneurs, we develop a theory that innovative entrepreneurs differ from executives on four behavioral patterns through which they acquire information: (1) questioning; (2) observing; (3) experimenting; and (4) idea networking. We develop operational measures of each of these behaviors and fi nd signifi cant differences between innovative entrepreneurs and executives in a large sample survey of 72 successful and unsuccessful innovative entrepreneurs and 310 executives. Drawing on network theory, we develop a theory of entrepreneurial opportunity recognition that explains why these behaviors increase the probability of generating an idea for an innovative venture. We contend that one's ability to generate novel ideas for innovative new businesses is a function of one's behaviors that trigger cognitive processes to produce novel business ideas. We also posit that innovative entrepreneurs are less susceptible to the status quo bias and engage in these information-seeking behaviors with a motivation to change the status quo.
Potential for opportunity recognition: differentiating entrepreneurs
International Journal of Entrepreneurship and Small Business, 2014
The potential for opportunity recognition (ORP) is a skill that single out successful entrepreneurs from unsuccessful ones. The entrepreneurs with high ORP were differentiated from the entrepreneurs with low ORP on the factors that influence their ORP. It was also found that the factors influencing ORP differed with the degree of potential to recognising opportunities. The ORP of entrepreneurs with high potential to recognise opportunities was influenced by bonding social capital, power motivation and level of education attained. Whereas, the ORP of entrepreneurs with low potential to recognise opportunities was influenced by their cognitive style. The implications of this study on mentoring of entrepreneurs are discussed.
Entrepreneurial Alertness and Opportunity Identification 3.0: Yes, We Can Talk Empirical
In 2008, we closed our literature review about entrepreneurial opportunity identification with a call to the discipline that " the game's afoot! " 1 It was clearly evident that the global market process had entered a period of creative destruction with financial markets experiencing meltdowns at the same time that new industries such as cleantech were emerging. These are moments in time that most social scientists dream of: naturally occurring phenomena that allow science to pit competing theories against each other to assess which, if any, provides the most useful explanation of the phenomena. In particular, we challenged the structurationists to make predictions about how the cleantech industry would organize itself and then, carefully and thoroughly chronicle what unfolded; we challenged the advocates of social cognition theory to conduct longitudinal studies about the development of the mental models and decision processes entrepreneurs used to make sense of the emerging industry and the opportunities they perceived it did or did not present; we challenged the social network theorists to conduct longitudinal studies regarding the networking behaviors of the entrepreneurs who introduced new products, services, processes, and business models in the emerging cleantech industry. Frankly, it wouldn't really matter if it turned out that none of these theoretical approaches to entrepreneurial alertness and opportunity identification proved useful because, regardless of the outcome, we would learn so much in the process of systematic empirical observation and testing.