Entrepreneurship and the Opportunity-Knowledge Nexus

18 Pages Posted: 2 Dec 2009

See all articles by Anne de Bruin

Anne de Bruin

Massey University

Francesco Ferrante

University of Cassino and Southern Lazio (UCLAM) - Department of Economics and Law

Date Written: December 1, 2009

Abstract

This paper is premised on the underlying notion that knowledge is crucial to the opportunity recognition and development process. In particular we draw on the insights of Atkinson and Stiglitz (1969) on the localised nature of knowledge accumulation. We then extend this analysis to portray and define the solution space and examine the implications of entrepreneurial knowledge in the recognition and development of opportunity within this space. Distinguishing between two forms of entrepreneurial knowledge, namely context dependent idiosyncratic knowledge or tacit knowledge, and codified knowledge, the primary aim of this article is to propose a knowledge-based model of opportunity within a bounded solution space. Our discussion of this model includes elaboration on how the composition of entrepreneurial knowledge predicts major path differences for the expansion and development of opportunities.

Keywords: Opportunity; knowledge, entrepreneurship, localised, tacit knowledge, codified knowledge

JEL Classification: L260

Suggested Citation

de Bruin, Anne and Ferrante, Francesco, Entrepreneurship and the Opportunity-Knowledge Nexus (December 1, 2009). Massey U. College of Business Research Paper No. 19, Available at SSRN: https://ssrn.com/abstract=1516246 or http://dx.doi.org/10.2139/ssrn.1516246

Anne De Bruin

Massey University ( email )

School of Economics and Finance
Albany Campus
Auckland, 0632
New Zealand

Francesco Ferrante (Contact Author)

University of Cassino and Southern Lazio (UCLAM) - Department of Economics and Law ( email )

Loc Folcara
Cassino, Frosinone 03043
Italy