Effects of Opportunity Discovery Strategies of Entrepreneurs on Performance of New Ventures

Abstract

Opportunity discovery process is one of the main topics of interest in entrepreneurship research. However, the effects of opportunity discovery strategies of entrepreneurs on performance of new ventures have been neglected. The reason for this appears to be the claim that opportunity discovery as behaviour of entrepreneurs takes place before the venture is established and, thus, should not be connected to the later phases of the entrepreneurial process. This is not an established consideration as it inherently holds the idea that research should study how entrepreneurs create value which should not be connected to the value they have created. The present study examined how opportunity discovery strategies of entrepreneurs affect performance of the ventures established. The results illustrate that the performance of new ventures is strongly influenced by opportunity discovery strategies used by entrepreneurs. More specifically, growth of new ventures showed significant increase by proactive opportunity discovery strategy. In addition, the opportunity discovery strategies of proactive searching, competitive scanning and collective action increased the newness value of the ventures. These results suggest that the strategies entrepreneurs use to discover opportunities have much impact on creating high performance levels of new ventures.