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The purpose of this paper is to obtain evidence concerning the basic dimensions included in cognitive prototypes pertaining to opportunity recognition and decision to launch a new venture; identifying the underlying dimensions of both prototypes – the cognitive frameworks current or nascent entrepreneurs employ in performing these important tasks.

The bi-dimensional models were tested in a sample of 284 founder entrepreneurs, using a 48-item questionnaire. It was used as structural equation confirmatory factor analysis to compare fit indices of uni-dimensional second-order and third-order bi-dimensional models of business opportunity and decision to launch a venture.

Results support the bi-dimensional models and offer support that both prototypes include two basic dimensions. For the business opportunity prototype these are viability and distinctiveness while for the decision to launch a new venture, the basic dimensions are feasibility and motivational aspects.

These results help to further clarify the nature of the cognitive frameworks individuals use to identify potential opportunities and reach an initial decision about whether to pursue their development. Uncovering the cognitive functioning of opportunity recognition and decision to exploit it, allow individuals to recognize opportunities easier and successfully; and to make more accurate and effective decisions.

Knowing the basic dimensions of opportunity and decision-making prototypes contributes to develop effective skills with respect to business opportunity recognition among students enrolled in entrepreneurship programs. These surveys can be used for self-assessment and also for investors, tutors, and entrepreneurship agents in order to help evaluate features of business opportunities and decision to launch a venture.

This study embraces a conceptual contribution, proposing a different model of the business opportunity and decision to exploit prototypes, and it extends Baron and Ensley (2006) previous work, to another important step in the entrepreneurial process – the decision to develop an identified opportunity through the launch of a new venture.

The purpose of this chapter is to introduce the concept of public business models and develop a theory for the process of developing and managing public business models.

This research synthesizes insights from various fields into a set of theoretical ideas that lay out what public business models are, to what extent they differ from commercial/industrial business models, and how they are developed and managed by public entrepreneurs.

Developing and managing a business model is an entrepreneurial task that has been missing from the public entrepreneurship literature. Public entrepreneurs perform these tasks using public and private resources, leveraging public institutional systems, and developing capabilities that differ in several dimensions from private entrepreneurs due to the nature of public goods and existence of quasi-markets where public business models are developed and used.

This chapter opens new avenues for research in public entrepreneurship by suggesting that (1) public business models form the foundation of public entrepreneurship, (2) public business models differ from commercial business models not in their functionality but rather in their scope and design, and (3) public business models co-evolve with public institutions to maintain their legitimacy and value creation potential.

This chapter equips public entrepreneurs with new insights into enterprising behaviors and the dynamism of value creation and capture in public ventures.

The current study represents the first attempt to directly incorporate the notion of business models into the public entrepreneurship literature.

Entrepreneurs in a competitive economy face three fundamental problems. They need to search for and discover a business opportunity (Kirzner, 1973), evaluate it (Knight, 1921), and then seize the opportunity to reap entrepreneurial profits (Schumpeter, 1911) (Langlois, 2007). The problem that we address is how the ability to exploit business opportunities is influenced by entrepreneurial search and the economic organization of entrepreneurship (Arrow, 1962; Lippman & Rumelt, 2003b; Aghion et al., 2005; Foss, Foss, & Klein, 2007). In many cases, the discovery for a new business opportunity needs to be motivated by expected gains, since the search and evaluation of business opportunities is a costly, resource-consuming process (Denrell, Fang, & Winter, 2003; Nickerson & Zenger, 2004; Foss & Klein, 2005; Teece, 2007; Foss & Foss, 2008).¹ We show the critical role of expectations for understanding of the economic organization of entrepreneurship, and argue that transaction cost economics, with its insistence on bounded rationality, but farsighted contracting offers useful insights and presents rich opportunities for further theoretical and empirical research (cf. also Furubotn, 2002).

As the transition between exploration and exploitation is a unique challenge for SMEs, what mechanism(s) might facilitate this transition? Building on the entrepreneurship literature's entrepreneurial opportunity identification and development framework, this study hypothesizes that the novelty-centered business model (NCBM) may serve as such a mechanism.

Based on cross-sectional survey data collected from 169 Italian SMEs in various sectors, this study tests the mediation, moderation and moderated mediation relationships using the statistical PROCESS procedure.

Supporting the hypotheses that exploration and exploitation are positively associated within SMEs, that NCBM mediates this relationship and that the indirect relationship between exploration and exploitation by way of NCBM is stronger for SMEs with employees of medium to high creative human capital, the results suggest that SMEs can more effectively exploit new ideas identified in the exploration phase by developing an NCBM and accessing their creative human capital.

Although the robustness checks confirm the direction of the proposed hypotheses, given the cross-sectional nature of the dataset used, a longitudinal study would further validate the proposed framework.

SMEs can successfully achieve the transition between exploration and exploitation by reinventing their business model to compensate for their limited resources in terms of financial or relational capital. They can further enhance their ability to reinvent their business model and, in turn, to exploit innovations by hiring and retaining employees with greater creative human capital.

This study draws on the entrepreneurial opportunity, ambidexterity (exploration-exploitation) and business model literature to enhance our understanding of the role of the NCBM design concept (business model innovation) as a mechanism to achieve temporal ambidexterity in SMEs.

Although business incubators are widely used support mechanisms for innovative entrepreneurship, the literature still lacks theoretically based explanations of how the incubation process creates value for stakeholders. This study aims to address this gap by developing a conceptual model, and related research propositions, that explains how the entrepreneurial logic in use by an incubator influences the incubation process (selection criteria and service offering) and performance.

Integrating the effectuation and entrepreneurial opportunities literature, which shares common conceptualizations about how the predictability of the future affects entrepreneurial action, the authors posit two archetypes of entrepreneurial logic that are associated with different incubation processes (causal or effectual) and two archetypes of opportunity attributes (discovery- or creation-based) that affect the incubation process needed to support their development.

Juxtaposing these archetypes, the proposed cross-level conceptual model specifies four levels of fit (ideal, surplus, deficit and mismatch) between the incubation process and the opportunity attributes of individual ventures, which directly influence venture performance (high, moderate and low). In turn, an incubator's performance is largely shaped by the overall performance of ventures in its portfolio.

This paper responds to the call for theory-building that links the antecedents and outcomes of the incubation process across levels of analysis. In addition to developing a conceptual model and research agenda at the intersection of entrepreneurship and business incubation, the proposed model also has implications for incubator directors deciding how to allocate limited resources, and for public/private sector administrators interested in leveraging investment in business incubators.

The purpose of this paper is to develop a conceptual framework identifying and differentiating how knowledge and technology transfer organizations (KTTOs) create value from how they capture and transfer value.

The argument of the paper is developed in two steps. First, the knowledge and technology transfer process is conceptualized as a value chain. Second, the internal KTTO's value chain perspective is extended by integrating the knowledge and technology transfer value chain into a business model conceptual perspective in order to emphasize the value captured by the clients of KTTOs. Then, the authors examine how KTTO managers could describe, benchmark and improve their business models by altering or reinforcing how they are positioned with respect to the interdependent elements of their business model. Finally, the elements of the conceptual framework are used to derive emblematic types of business models and provide exemplary cases for each emblematic case.

Looking at KTTO management under the lenses of business models invites KTTO managers to look at knowledge and technology transfer as a whole. It suggests to managers to invest resources not only in the improvement of these elements where their organizations are strong, but also in these elements that constitute their weakest elements in the business model. Failure to improve the weakest elements of the business model might compromise the overall knowledge and technology transfer capabilities and performances of KTTOs.

The conceptual framework developed in this paper is intended as a starting point to explore how KTTO managers may be more effective in creating and capturing value from knowledge transfer.

This study explores how open innovation (OI) can be instrumental for entrepreneurs in sensing and seizing entrepreneurial opportunities in small and medium enterprises (SMEs). This study also illustrates how OI can help SMEs overcome the liability of smallness.

This is exploratory research using an inductive, multiple-case study approach. This study capitalizes on five in-depth case studies of European SMEs to explore a phenomenon using replication logic and provide a robust basis for theory building.

This study presents a holistic view of the OI process in SMEs and illustrates the crucial role of entrepreneurs. The study provides a better understanding of how OI can help entrepreneurs sense and seize entrepreneurial opportunities by envisioning venture ideas and implementing business model innovation through the management of innovation partners.

The study emphasizes two critical roles of entrepreneurs in implementing OI in SMEs. First, the entrepreneur can be the instigator of strategic change, and second, he/she can orchestrate the innovation network. The findings emphasize that OI helps avoid knowledge corridors at the venture idea stage, leading to a (re)structuring of the business model and the emergence of a network of innovation partners, which should be managed hands-on. This study discusses in detail the two crucial roles of entrepreneurs.

The purpose of this paper is to address the following question: how managerial ties impact firm business model innovation (BMI) in the context of transition economies.

The authors present a conceptual model that links managerial ties, organizational learning (explorative and exploitative learning), opportunity recognition and BMI together.

This study finds that managerial ties take effect through two paths: one direct path and one indirect path. First, managerial ties can impact BMI directly through exploitative and explorative learning. Second, managerial ties can impact BMI indirectly through explorative learning and opportunity recognition.

First, firm managers from transition economies should learn to reinvent their business models by taking full advantage of managerial ties. Second, firm managers should take appropriate actions to transfer managerial ties into BMI.

This study contributes to existing literature in two major ways. First, this study enriches literature on the antecedents to BMI from a social network perspective. Second, this study opens the “black box” between managerial ties and BMI in the context of transition economies.

Firms take design leaps when they imitate an established business model developed either by another firm or in another market to create business opportunities. While recent research has suggested the use of contextual intelligence for imitation, the exact process of adaptation of a business model is not fully understood. The purpose of this paper is to outline the process through which an emerging market firm adapts a developed market business model for creating business opportunities in the local market.

This paper investigates the journey of Air Deccan, the pioneer low-cost airline in India, from its founding until its successful adaptation of a (Western) business model and eventual failure. The authors use a qualitative case-based approach to study business model adaptation.

The authors find that adaptation involves the incorporation of following design features: novelty to overcome problem of institutional voids, elasticity to exploit unexpected increase in demand and efficiency to serve large volumes. Based on the evidence, the authors suggest the introduction of global efficiency measures as the boundary conditions of business model adaptation in emerging markets.

The paper contributes to the literature on business models by suggesting elasticity as a unique design feature relevant for emerging markets. This paper provides granular understanding of business model toxicity.

Entrepreneurs and managers – looking to enter emerging markets through opportunity creation – should focus on providing contextually novel design features in the adapted business model. The authors also caution practitioners against the perils of toxicity arising out of combining contextual novelty with efficiency.

Recent literature suggests that multinationals need contextual intelligence to successfully monetize their investment in emerging economies. This paper provides rich description of the challenges faced by entrepreneurs in emerging markets, local innovations used to overcome them and boundary conditions.

This paper aims to explore the underlying reasons for business model change among internationalizing SMEs and illustrate how home market context affects that change.

This is a comparative case study of two companies with similar backgrounds from different countries of origin. In each case, the data were collected by means of in-depth interviews with key informants. For its theoretical background, the study draws on the business model innovation and international business literature.

The authors found that home market context has two kinds of effect on business model change in internationalizing SMEs. First, home market maturity has a strong effect on the timing of companies’ internationalization efforts. Second, the company’s home market can either be used to strengthen the value proposition or may be disguised, depending on how the country of origin is seen in international markets. This factor has a strong influence on how SMEs change their business model when internationalizing.

The study’s limitations relate to its qualitative and exploratory nature. Future research should further assess the generalizability of these findings across different cultural contexts and countries of origin by quantifying the central concepts and examining how they relate to larger-scale cross-national and cross-sectional panel data.

As internationalization increasingly poses both threats and opportunities, companies must be able to experiment with business models when necessary to adapt to the host market. In so doing, it is also important to consider how a company’s home market affects business model change.

This is one of the first studies to illustrate how the process of internationalization drives SMEs to change their business models. As such, the paper enhances existing understanding of business model change in the context of internationalization. To our knowledge, no previous study has described these dynamics in a comparative context that takes account of SME country of origin.