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Effectuation And Opportunity Recognition In The Renewable Energy Sector In South Africa: A Focus On Environmental Dynamism And Hostility

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  • BORIS URBAN

    (Wits Business School, University of the Witwatersrand, Johannesburg, P. O. Box 98, Wits 2050, South Africa)

Abstract

Effectuation is well suited to broaden our understanding of opportunity recognition because effectual processes are related to recognizing and exploiting opportunities in new markets under conditions of uncertainty. This article investigates the relationship between effectuation and opportunity recognition, while at the same time, accounting for the influence of environmental dynamism and hostility in an African emerging market context — South Africa. In so doing, the paper responds directly to calls for research to emphasize the importance of environmental conditions while placing more attention on quantifying its influences on the opportunity recognition process. Following a survey of 302 enterprises in the renewable energy sector in South Africa, results indicate that entrepreneurs apply effectual principles to recognize and exploit more opportunities while operating in dynamic and hostile surroundings. By explaining the relationships and interactions between effectuation, the environment and opportunity recognition in an African market context, the study provides a more theoretically comprehensive configuration than any of these factors would show in isolation.

Suggested Citation

  • Boris Urban, 2018. "Effectuation And Opportunity Recognition In The Renewable Energy Sector In South Africa: A Focus On Environmental Dynamism And Hostility," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 23(02), pages 1-17, June.
    • Handle: RePEc:wsi:jdexxx:v:23:y:2018:i:02:n:s1084946718500103
    DOI: 10.1142/S1084946718500103
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    1. Saras Sarasvathy, 2023. "Questions worth asking for futures worth making: an effectual approach," Small Business Economics, Springer, vol. 61(1), pages 11-21, June.

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