The Roles of Knowledge and Organizational Form on Opportunity Evaluation

Abstract

What influences an individual to pursue one type of entrepreneurial opportunity versus another?Knowledge is central to the concept of opportunity identification, evaluation, and exploitation.Using conjoint analysis to capture underlying decision policies, we explore the roles of both knowledge and organizational form in the evaluation of entrepreneurial opportunities.Our findings suggest that, among respondents who considered pursuing a franchised venture a viable alternative to founding an independent venture, franchise versus independent form alone did not play a specific and significant role in the evaluation of the attractiveness of entrepreneurial opportunities.Rather, organizational form appears to influence the impact of both human capital relatedness and the inimitability of resource attributes on opportunity attractiveness.

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