Advanced Search
MyIDEAS: Login to save this article or follow this journal

Prior-knowledge and opportunity identification

Contents:

Author Info

  • Jason Arentz

    ()

  • Frederic Sautet

    ()

  • Virgil Storr

    ()

Registered author(s):

    Abstract

    An entrepreneur’s prior knowledge and experience play a critical role in his ability to identify and exploit entrepreneurial opportunities. Although entrepreneurship research has acknowledged the role that prior information and prior knowledge play in opportunity recognition, few studies have explored their role in entrepreneurial discovery. We test the role of a particular prior knowledge in entrepreneurial discovery within a laboratory setting. Participants were randomly assigned to one of two treatment groups. Those in the propitious treatment were given prior knowledge that oriented them toward the arbitrage opportunity within the experiment, and those in the unpropitious treatment were given prior knowledge that oriented them away. As hypothesized, those in the propitious treatment were significantly more likely to discover the arbitrage opportunity. Copyright Springer Science+Business Media, LLC. 2013

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://hdl.handle.net/10.1007/s11187-012-9437-9
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Springer in its journal Small Business Economics.

    Volume (Year): 41 (2013)
    Issue (Month): 2 (August)
    Pages: 461-478

    as in new window
    Handle: RePEc:kap:sbusec:v:41:y:2013:i:2:p:461-478

    Contact details of provider:
    Web page: http://www.springerlink.com/link.asp?id=100338

    Related research

    Keywords: Alertness; Discovery; Entrepreneurship; Opportunity; Prior knowledge; D80; L26;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Baron, Robert A., 2004. "The cognitive perspective: a valuable tool for answering entrepreneurship's basic "why" questions," Journal of Business Venturing, Elsevier, vol. 19(2), pages 221-239, March.
    2. Polona Tominc & Miroslav Rebernik, 2007. "Growth Aspirations and Cultural Support for Entrepreneurship: A Comparison of Post-Socialist Countries," Small Business Economics, Springer, vol. 28(2), pages 239-255, March.
    3. Ward, Thomas B., 2004. "Cognition, creativity, and entrepreneurship," Journal of Business Venturing, Elsevier, vol. 19(2), pages 173-188, March.
    4. Pia Arenius & Dirk Clercq, 2005. "A Network-based Approach on Opportunity Recognition," Small Business Economics, Springer, vol. 24(3), pages 249-265, 02.
    5. Erik O. Kimbrough & Vernon L. Smith & Bart J. Wilson, 2008. "Historical Property Rights, Sociality, and the Emergence of Impersonal Exchange in Long-Distance Trade," American Economic Review, American Economic Association, vol. 98(3), pages 1009-39, June.
    6. Kaish, Stanley & Gilad, Benjamin, 1991. "Characteristics of opportunities search of entrepreneurs versus executives: Sources, interests, general alertness," Journal of Business Venturing, Elsevier, vol. 6(1), pages 45-61, January.
    7. Corbett, Andrew C., 2007. "Learning asymmetries and the discovery of entrepreneurial opportunities," Journal of Business Venturing, Elsevier, vol. 22(1), pages 97-118, January.
    8. Israel M. Kirzner, 2005. "Information-Knowledge and Action-Knowledge," Econ Journal Watch, Econ Journal Watch, vol. 2(1), pages 75-81, April.
    9. Ardichvili, Alexander & Cardozo, Richard & Ray, Sourav, 2003. "A theory of entrepreneurial opportunity identification and development," Journal of Business Venturing, Elsevier, vol. 18(1), pages 105-123, January.
    10. Guido Buenstorf, 2007. "Creation and Pursuit of Entrepreneurial Opportunities: An Evolutionary Economics Perspective," Small Business Economics, Springer, vol. 28(4), pages 323-337, April.
    11. Gaglio, Connie Marie & Katz, Jerome A, 2001. " The Psychological Basis of Opportunity Identification: Entrepreneurial Alertness," Small Business Economics, Springer, vol. 16(2), pages 95-111, March.
    12. Kirzner, Israel M, 1999. " Creativity and/or Alertness: A Reconsideration of the Schumpeterian Entrepreneur," The Review of Austrian Economics, Springer, vol. 11(1-2), pages 5-17.
    13. Lawrence Plummer & J. Haynie & Joy Godesiabois, 2007. "An Essay on the Origins of Entrepreneurial Opportunity," Small Business Economics, Springer, vol. 28(4), pages 363-379, April.
    14. Demmert, Henry & Klein, Daniel B., 2003. "Experiment on entrepreneurial discovery: an attempt to demonstrate the conjecture of Hayek and Kirzner," Journal of Economic Behavior & Organization, Elsevier, vol. 50(3), pages 295-310, March.
    15. James Fiet & Pankaj Patel, 2008. "Entrepreneurial Discovery as Constrained, Sytematic Search," Small Business Economics, Springer, vol. 30(3), pages 215-229, March.
    16. Israel Kirzner, 1999. "Creativity and/or Alertness: A Reconsideration of the Schumpeterian Entrepreneur," The Review of Austrian Economics, Springer, vol. 11(1), pages 5-17, January.
    17. Burmeister, Katrin & Schade, Christian, 2007. "Are entrepreneurs' decisions more biased? An experimental investigation of the susceptibility to status quo bias," Journal of Business Venturing, Elsevier, vol. 22(3), pages 340-362, May.
    18. Chen, Chao C. & Greene, Patricia Gene & Crick, Ann, 1998. "Does entrepreneurial self-efficacy distinguish entrepreneurs from managers?," Journal of Business Venturing, Elsevier, vol. 13(4), pages 295-316, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:kap:sbusec:v:41:y:2013:i:2:p:461-478. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.