|M.Sc Student||Kremer-Srabstein Oshrat|
|Subject||The Entrepreneur's Entreprenerial Opportunity Evaluation:|
Opportunity and Individual Characteristics
|Department||Department of Industrial Engineering and Management||Supervisors||Mr. Avi Fiegenbaum (Deceased)|
|Professor Emeritus Miriam Erez|
The current study focuses on the entrepreneur point of view in entrepreneurial opportunity evaluation (EOE) and proposes a new framework centered on two perspectives affecting the EOE: the multifaceted characteristics of the opportunity (industry size and competition; product market and technological innovation, entrepreneur's familiarity with the market and commitment to the opportunity) and the characteristics of the entrepreneur who evaluates the opportunity (prior entrepreneurial experience and personal dispositions for risk taking and initiative). The EOE outcomes are the decision to exploit an opportunity and its expected profit. Our basic research hypothesis, linking EOE characteristics and outcomes, postulates that the EOE outcome will be higher when the attractiveness of the opportunity characteristics increases. We also compare the relative importance of the opportunity characteristics emphasized by the Resource Based View perspective, with those opportunity characteristics emphasized by the Market Based View perspective. In addition, we suggest that EOE will be higher for entrepreneurs who are more, rather than less experienced, and oriented toward risk taking and initiative.
Using conjoint analyses the following major findings were revealed. First, both the opportunity characteristics and the entrepreneur’s individual characteristics had an impact, although different ones, on the decision to exploit an opportunity, and on its expected profit. Second, the opportunity’s RBV perspective found to have more impact on the decision to exploit an opportunity than the MBV perspective, and there were ambiguous findings regarding the expected profit. Third, the entrepreneur’s personal dispositions toward both risk taking and initiative effects the decision to exploit, but only risk taking propensity effects the expected profit.