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A Dynamic Model of Entrepreneurial Uncertainty and Business Opportunity Identification: Exploration as a Mediator and Entrepreneurial Self-Efficacy as a Moderator

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  • Antje Schmitt
  • Kathrin Rosing
  • Stephen X. Zhang
  • Michael Leatherbee

Abstract

This study focuses on the identification of business opportunities when entrepreneurs’ perceived level of environmental uncertainty changes. We suggest that within persons, exploration mediates this relationship and entrepreneurial self-efficacy moderates whether entrepreneurs explore more or less with increasing uncertainty. To test our moderated mediation model we conducted a monthly field study with 121 early-stage entrepreneurs. Multilevel regression analyses reveal that an increase in the level of perceived uncertainty within entrepreneurs predicted the identification of opportunities through exploration for entrepreneurs high in self-efficacy, but not for those low in self-efficacy. Entrepreneurial self-efficacy acts as a personal resource that helps entrepreneurs to transform increasing perceptions of uncertainty into exploration and opportunity identification.

Suggested Citation

  • Antje Schmitt & Kathrin Rosing & Stephen X. Zhang & Michael Leatherbee, 2018. "A Dynamic Model of Entrepreneurial Uncertainty and Business Opportunity Identification: Exploration as a Mediator and Entrepreneurial Self-Efficacy as a Moderator," Entrepreneurship Theory and Practice, , vol. 42(6), pages 835-859, November.
    • Handle: RePEc:sae:entthe:v:42:y:2018:i:6:p:835-859
    DOI: 10.1177/1042258717721482
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    References listed on IDEAS

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    3. María José González-López & María Carmen Pérez-López & Lázaro Rodríguez-Ariza, 2021. "From potential to early nascent entrepreneurship: the role of entrepreneurial competencies," International Entrepreneurship and Management Journal, Springer, vol. 17(3), pages 1387-1417, September.
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    6. Tucker, Reginald & Zuo, Lu & Marino, Louis D. & Lowman, Graham H. & Sleptsov, Alexander, 2021. "ADHD and entrepreneurship: Beyond person-entrepreneurship fit," Journal of Business Venturing Insights, Elsevier, vol. 15(C).
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    8. Stephen X. Zhang & Elco Burg, 2020. "Advancing entrepreneurship as a design science: developing additional design principles for effectuation," Small Business Economics, Springer, vol. 55(3), pages 607-626, October.
    9. Kristian Peters & Paul Buijs, 2022. "Strategic ambidexterity in green product innovation: Obstacles and implications," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 173-193, January.
    10. Md. Nazmus Sakib & Mustafa Raza Rabbani & Iqbal Thonse Hawaldar & Mohammad Abdul Jabber & Jubait Hossain & Mohammad Sahabuddin, 2022. "Entrepreneurial Competencies and SMEs’ Performance in a Developing Economy," Sustainability, MDPI, vol. 14(20), pages 1-18, October.
    11. Quignon, Aurelien, 2023. "Crowd-based feedback and early-stage entrepreneurial performance: Evidence from a digital platform," Research Policy, Elsevier, vol. 52(7).
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    13. Yang, Feifei & Yang, Miles M., 2022. "Does cross-cultural experience matter for new venture performance? The moderating role of socio-cognitive traits," Journal of Business Research, Elsevier, vol. 138(C), pages 38-51.
    14. Shashi Bhushan Kumar & Nandan Sudarsanam, 2022. "A Decision-Making Framework for Entrepreneurial Venture in Emerging Economies," International Journal of Global Business and Competitiveness, Springer, vol. 17(1), pages 11-23, June.
    15. Adalberto Escorcia & Jose Ramos-Ruiz & Rohemi Zuluaga-Ortiz & Enrique Delahoz-Domínguez, 2022. "Determining factors for the creation of innovation-based ventures," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-28, December.
    16. Levent Gun & Salih Zeki Imamoglu & Hulya Turkcan & Huseyin Ince, 2024. "Effect of Digital Transformation on Firm Performance in the Uncertain Environment: Transformational Leadership and Employee Self-Efficacy as Antecedents of Digital Transformation," Sustainability, MDPI, vol. 16(3), pages 1-17, January.
    17. Carsten Bergenholtz & Kim Klyver & Oana Vuculescu, 2023. "Self-Efficacy in Disrupted Environments: COVID-19 as a Natural Experiment," Entrepreneurship Theory and Practice, , vol. 47(3), pages 724-750, May.
    18. Beatrice Karitu & Wanja Wangondu & Stephen Muathe, 2022. "A theoretical route towards conceptualization of start-ups in emerging markets: A Kenyan perspective," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(4), pages 448-457, June.

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