Opportunity Creation, Underlying Conditions and Economic Exchange

Abstract

In this study we focus on how conditions of uncertainty shape the entrepreneurial action that underlies opportunity creation. We utilize the basic structure of economic exchange in the context of opportunity creation theory to further investigate the conditions under which an entrepreneur might be expected to act to bring an opportunity into existence. Specifically, we suggest that uncertainty, that is manifest as relational uncertainty and resource uncertainty, shapes the entrepreneurial actions that underlie the creation of opportunities. In a laboratory experiment we test this hypothesis by observing 56 three-person groups engaged in an opportunity creation-focused exchange task. The results of the experiment support the hypothesis that variability in the conditions of uncertainty (relational uncertainty and resource uncertainty) affects the entrepreneurial action that results in opportunity creation. These results lead us then to propose that there exists a theoretically specifiable set of key entrepreneurial actions (one that is others-focused and another that is works-focused). From this analysis we suggest potential directions for future research in the areas of entrepreneurial action and opportunity creation.

Citation

Mitchell, J.R., Mitchell, R.K., Mitchell, B.T. and Alvarez, S. (2012), "Opportunity Creation, Underlying Conditions and Economic Exchange", Corbett, A.C. and Katz, J.A. (Ed.) Entrepreneurial Action (Advances in Entrepreneurship, Firm Emergence and Growth, Vol. 14), Emerald Group Publishing Limited, Leeds, pp. 89-123. https://doi.org/10.1108/S1074-7540(2012)0000014007