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How does An Entrepreneur’s Ability Influence the Propensity to Exploit Novel Opportunities? The Moderating Role of Personality and Environment

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Author Info
Lee, Lena
Wong, Poh Kam

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Abstract

While prior research has examined the influence of entrepreneurs’ ability and personality on entrepreneurial behavior separately, our study’s contribution is to confirm their joint effects, as well as their interaction effects with the dynamism of the environment on entrepreneurs’ opportunity exploitation behavior. Our study’s findings are consistent with the emerging opportunity-exploiter nexus framework of Shane and Venkataraman, which posits that the rate and nature of entrepreneurial exploitation activities are jointly determined by the nexus of environmental factors that shape the emergence of opportunities and the supply of opportunity-seekers with the right entrepreneurial personalities and abilities to exploit such opportunities. Specifically, we found that highly critical entrepreneurs who are high in extraversion, agreeableness, openness to experience, independence, and emotional stability have higher propensity to exploit novel opportunities in uncertain environments.

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File URL: http://mpra.ub.uni-muenchen.de/597/
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 597.

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Date of creation: 2006
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Handle: RePEc:pra:mprapa:597

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Related research
Keywords: Personality ability opportunity exploitation

Find related papers by JEL classification:
M2 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics

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  1. Sjoerd Beugelsdijk & Niels Noorderhaven, 2005. "Personality Characteristics of Self-Employed; An Empirical Study," Small Business Economics, Springer, vol. 24(2), pages 159-167, 03. [Downloadable!] (restricted)
  2. Fagenson, Ellen A., 1993. "Personal value systems of men and women entrepreneurs versus managers," Journal of Business Venturing, Elsevier, vol. 8(5), pages 409-430, September. [Downloadable!] (restricted)
  3. Barringer, Bruce R. & Greening, Daniel W., 1998. "Small business growth through geographic expansion: A comparative case study," Journal of Business Venturing, Elsevier, vol. 13(6), pages 467-492, November. [Downloadable!] (restricted)
  4. Macmillan, Ian C. & Siegel, Robin & Narasimha, P. N. Subba, 1985. "Criteria used by venture capitalists to evaluate new venture proposals," Journal of Business Venturing, Elsevier, vol. 1(1), pages 119-128. [Downloadable!] (restricted)
  5. 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. [Downloadable!] (restricted)
  6. Rögnvaldur Saemundsson & Åsa Dahlstrand, 2005. "How Business Opportunities Constrain Young Technology-Based Firms from Growing into Medium-Sized Firms," Small Business Economics, Springer, vol. 24(2), pages 113-129, 03. [Downloadable!] (restricted)
  7. van Praag, C M & Cramer, J S, 2001. "The Roots of Entrepreneurship and Labour Demand: Individual Ability and Low Risk Aversion," Economica, London School of Economics and Political Science, vol. 68(269), pages 45-62, February. [Downloadable!] (restricted)
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