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Opportunity Evaluation as Rule‐Based Decision Making

Opportunity Evaluation as Rule‐Based Decision Making We draw from cognitive science literature on rule‐based thinking to develop and empirically test a theoretical framework of entrepreneurial opportunity evaluation. We argue that entrepreneurs make use of socially constructed rules to discern the attractiveness of an opportunity, for them, specifically. Using conjoint analysis data of 498 decisions made by 62 entrepreneurs, we find that entrepreneurs' use of rules regarding opportunity novelty, resource efficiency, and worst‐case scenario significantly influences entrepreneurs' evaluations of opportunities and that individual differences in opportunity market and technology knowledge augment the effect of the rules on opportunity attractiveness. Additionally, we document that the worst‐case scenario diminishes the positive effect of other rule criteria (e.g. novelty, resource efficiency) on opportunity evaluation and that market and technology knowledge further influence the negative effects of the worst‐case scenario. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Management Studies Wiley

Opportunity Evaluation as Rule‐Based Decision Making

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References (160)

Publisher
Wiley
Copyright
Copyright © 2014 John Wiley & Sons Ltd and Society for the Advancement of Management Studies
ISSN
0022-2380
eISSN
1467-6486
DOI
10.1111/joms.12018
Publisher site
See Article on Publisher Site

Abstract

We draw from cognitive science literature on rule‐based thinking to develop and empirically test a theoretical framework of entrepreneurial opportunity evaluation. We argue that entrepreneurs make use of socially constructed rules to discern the attractiveness of an opportunity, for them, specifically. Using conjoint analysis data of 498 decisions made by 62 entrepreneurs, we find that entrepreneurs' use of rules regarding opportunity novelty, resource efficiency, and worst‐case scenario significantly influences entrepreneurs' evaluations of opportunities and that individual differences in opportunity market and technology knowledge augment the effect of the rules on opportunity attractiveness. Additionally, we document that the worst‐case scenario diminishes the positive effect of other rule criteria (e.g. novelty, resource efficiency) on opportunity evaluation and that market and technology knowledge further influence the negative effects of the worst‐case scenario.

Journal

Journal of Management StudiesWiley

Published: Jan 1, 2014

Keywords: ; ; ; ;

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