Ideas and opportunities: Impact of technology knowledge through entrepreneurial alertness

Abstract

Not all ideas are opportunities. Clear differentiation between the two concepts are vital to our understanding of the entrepreneurial opportunity recognition process. How does certain knowledge of information transform to be an idea or a feasible opportunity? The purpose of this study is to examine the relationships of technology knowledge and opportunity recognition process of small firms technology firms in Malaysia. The study seeks to explore the gaps in our current knowledge on the opportunity recognition process for ideas and for exploitation of opportunities. This paper employs quantitative research design involving self-reporting questionnaires. Founders and co-founders of technology companies (n=255) are surveyed as respondents and data collected are analyzed using PLS-SEM technique. Findings have shown that technology knowledge affect the entrepreneur’s ability to recognize opportunity. Technology knowledge influences directly providing ideas for further exploration. From a more practical standpoint, the use of ideation programs in entrepreneurial initiatives needs to be clear on the outcomes of the program and to further supplement with the right support for full exploitation of opportunities. The clear delineation of the opportunity construct within the entrepreneurship studies enables progress to be made in building a clearer opportunity recognition framework. The empirical results are also supporting the presence of entrepreneurial alertness as the mediator in the model. This relationship not been explored and empirically proven previously.