IDEAS home Printed from https://ideas.repec.org/a/bpj/erjour/v7y2017i3p16n3.html
   My bibliography  Save this article

Opportunity Evaluation Using Uncertainties in Software Entrepreneurship

Author

Listed:
  • Tomy Sarath

    ()

  • Pardede Eric

    (Department of Computer Science and Information Technology, La Trobe University, Bundoora, Victoria3086, Australia)

Abstract

Understand the uncertainties and evaluate the opportunity are essential to support the number of new businesses launched every day. The aim of this paper is to analyse the uncertainty factors related to the evaluation of opportunity in software entrepreneurship. This study is concerned with developing a simple and effective framework for software entrepreneurs to evaluate opportunities for their projected venture and predict its success in an uncertain environment. The paper begins with identifying uncertainty factors relevant to software start-ups. Then, we introduce the Opportunity Evaluation Model to evaluate the scope of opportunities as moderated by the uncertainties using External Factor Evaluation (EFE) and Internal Factor Evaluation (IFE) matrix methods. The model outputs Internal-External (I-E) matrix containing graphical representation of the opportunity position, with the strengths, weaknesses, opportunities and threats identified from the inputs. Two case studies with different factor ratings for uncertainties are demonstrated using the model with a detailed explanation of the procedure of implementation. The article ends with a note on the efficacy of the framework and reiterates the importance of research examining opportunities in relation with surrounding uncertainties. Early recognition and management of uncertainties identified in this paper can increase the chance of success for new software ventures.

Suggested Citation

  • Tomy Sarath & Pardede Eric, 2017. "Opportunity Evaluation Using Uncertainties in Software Entrepreneurship," Entrepreneurship Research Journal, De Gruyter, vol. 7(3), pages 1-16, July.
  • Handle: RePEc:bpj:erjour:v:7:y:2017:i:3:p:16:n:3
    as

    Download full text from publisher

    File URL: https://www.degruyter.com/view/j/erj.2017.7.issue-3/erj-2016-0044/erj-2016-0044.xml?format=INT
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sebestova Jarmila & Rylkova Zaneta & Smysl Marek, 2007. "How to Gain Success in SME? A Case Study of a region in the Czech Republic," South East European Journal of Economics and Business, Sciendo, vol. 2(1), pages 41-47, April.
    2. Stein W. Wallace, 2000. "Decision Making Under Uncertainty: Is Sensitivity Analysis of Any Use?," Operations Research, INFORMS, vol. 48(1), pages 20-25, February.
    3. Giarratana, Marco S., 2004. "The birth of a new industry: entry by start-ups and the drivers of firm growth: The case of encryption software," Research Policy, Elsevier, vol. 33(5), pages 787-806, July.
    4. Denis A. Grégoire & Pamela S. Barr & Dean A. Shepherd, 2010. "Cognitive Processes of Opportunity Recognition: The Role of Structural Alignment," Organization Science, INFORMS, vol. 21(2), pages 413-431, April.
    5. John Butler & Robert Doktor & Frederick Lins, 2010. "Linking international entrepreneurship to uncertainty, opportunity discovery, and cognition," Journal of International Entrepreneurship, Springer, vol. 8(2), pages 121-134, June.
    Full references (including those not matched with items on IDEAS)

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:erjour:v:7:y:2017:i:3:p:16:n:3. 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: (Peter Golla). General contact details of provider: https://www.degruyter.com .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.