Skip to main content

The Individual-Opportunity Nexus

  • Chapter
Book cover Handbook of Entrepreneurship Research

Part of the book series: International Handbook Series on Entrepreneurship ((IHSE,volume 1))

The authors thank Mike Van Roo for his assistance with preparing this manuscript for publication. Portions of this chapter appeared in the Journal of Management under the title, “The Importance of Prices and Opportunities to Entrepreneurship.”

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 99.00
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 129.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Acs, Z. and Audretsch, D. (1989). Births and firm size. Southern Economic Journal, 56(2), 467–476.

    Article  Google Scholar 

  • Akerlof, G. (1970). The market for “lemons”: Quality uncertainty and the market mechanism. Quarterly Journal of Economics, 84(3), 488–500.

    Article  Google Scholar 

  • Aldrich, H. and C. Zimmer (1986). Entrepreneurship through social networks. In Donald Sexton and Raymond Smilor (eds.), The Art and Science of Entrepreneurship. New York: Ballinger.

    Google Scholar 

  • Amit, R., L. Glosten and E. Mueller (1990). Entrepreneurial ability, venture investments, and risk sharing. Management Science, 38(10), 1232–1245.

    Google Scholar 

  • Amit, R., L. Glosten and E. Mueller (1993). Challenges to theory development in entrepreneurship research. Journal of Management Studies, 30(5), 815–834.

    Article  Google Scholar 

  • Anand, B. and T. Khanna (2000). The structure of licensing contracts. Journal of Industrial Economics, 48(1), 103–135.

    Article  Google Scholar 

  • Arrow, K. (1962). Economic welfare and the allocation of resources for inventions. In R. Nelson (ed.), The Rate and Direction of Inventive Activity. Princeton, NJ: Princeton University Press.

    Google Scholar 

  • Arrow, K. (1974). Limited knowledge and economic analysis. American Economic Review, 64(1), 1–10.

    Google Scholar 

  • Audretsch, D. (1995). Innovation and Industry Evaluation. Cambridge: MIT Press.

    Google Scholar 

  • Audretsch, D. (1997). Technological regimes, industrial demography and the evolution of industrial structures. Industrial and Corporate Change, 6(1), 49–82.

    MathSciNet  Google Scholar 

  • Azoulay, P. and S. Shane (2001). Entrepreneurs, contracts and the failure of young firms. Management Science, 47(3), 337–358.

    Article  Google Scholar 

  • Bandura, A. (1997). Self-efficacy: The Exercise of Self Control. New York: W.H. Freeman and Company.

    Google Scholar 

  • Bankman, J. and R. Gilson (1999). Why start-ups? Stanford Law Review, 51, 289.

    Article  Google Scholar 

  • Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.

    Article  Google Scholar 

  • Baron, R. (forthcoming). OB and entrepreneurship: Why both may benefit from closer links. In B. Staw and R. Kramer (eds.), Research in Organizational Behavior. Greenwich, CT: JAI Press.

    Google Scholar 

  • Baumol, W. (1990). Entrepreneurship: Productive, unproductive, and destructive. Journal of Political Economy, 98(5), 893–921.

    Article  Google Scholar 

  • Baumol, W. (1993). Formal entrepreneurship theory in economics: Existence and bounds. Journal of Business Venturing, 8, 197–210.

    Article  Google Scholar 

  • Becker, G. and K. Murphy (1992). The division of labor, coordination costs and knowledge. Quarterly Journal of Economics, 107, 1137–1160.

    Article  Google Scholar 

  • Begley, T. (1995). Using founder status, age of firm, and company growth rate as the basis of distinguishing entrepreneurs from managers of smaller businesses. Journal of Business Venturing, 10, 249–263.

    Article  Google Scholar 

  • Begley, T. and D. Boyd (1987). A comparison of entrepreneurs and managers of small business firms. Journal of Management, 13, 99–108.

    Article  Google Scholar 

  • Brockhaus, R. (1980). Risk taking propensity of entrepreneurs. Academy of Management Journal, 23, 509–520.

    Article  Google Scholar 

  • Budner, S. (1982). Intolerance of ambiguity as a personality variable. Journal of Personality, 30, 29–50.

    Article  Google Scholar 

  • Burt, R.S. (1992). The social structure of competition. Networks and Organizations: Structure, Form and Action. 57–91. N. Nohria and R. Eccles (eds.). Harvard Business School Press, Cambridge, MA.

    Google Scholar 

  • Cable, D. and S. Shane (1997). A prisoner's dilemma approach to entrepreneur-venture capitalist relationships. Academy of Management Review, 22(1), 142–176.

    Article  Google Scholar 

  • Carroll, G. and E. Mosakowski (1987). The career dynamics of self-employment. Administrative Science Quarterly, 32, 570–589.

    Article  Google Scholar 

  • Casson, M. (1982). The Entrepreneur. Totowa, NJ: Barnes & Noble Books.

    Google Scholar 

  • Chen, C., P. Greene and A. Crick (1998). Does entrepreneurial self-efficacy distinguish entrepreneurs from managers? Journal of Business Venturing, 13(4), 295–316.

    Article  Google Scholar 

  • Christensen, C. and J. Bower (1996). Customer power, strategic investment, and the failure of leading firms. Strategic Management Journal, 17, 197–218.

    Article  Google Scholar 

  • Cohen, C. and Levin (1989). Firm size and R&D intensity: A re-examination. Journal of Industrial Economics, 35(4), 543–566.

    Google Scholar 

  • Cohen, W. and D. Levinthal (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35(1), 128–153.

    Article  Google Scholar 

  • Collins, C., E. Locke and P. Hanges (2000). The relationship of need for achievement to entrepreneurial behavior: A meta-analysis. Working Paper, University of Maryland at College Park.

    Google Scholar 

  • Dixit, A. and R. Pindyk (1994). Investment Under Uncertainty. Princeton, NJ: Princeton University Press.

    Google Scholar 

  • Drucker, P. (1985). Innovation and Entrepreneurship. New York: Harper and Row.

    Google Scholar 

  • Dunne, T., M. Roberts and L. Samuelson (1988). Patterns of firm entry and exit in U.S. manufacturing industries. Rand Journal of Economnics, 19(4), 495–515.

    Article  Google Scholar 

  • Evans, D. and L. Leighton (1989). Some empirical aspects of entrepreneurship. American Economic Review, 79(3), 519–535.

    Google Scholar 

  • Gaglio, C. and J. Katz (2001). The psychological basis of opportunity identification: Entrepreneurial alertness. Small Business Economics, 16, 95–111.

    Article  Google Scholar 

  • Gaglio, C. and R. Taub (1992). Entrepreneurs and opportunity recognition. Frontiers of Entrepreneurship Research: Proceedings of the Second Annual Babson College Entrepreneurship Research Conference. Wellesley, MA, June 1992.

    Google Scholar 

  • Gartner, W. (1990). What are we talking about when we talk about entrepreneurship? Journal of Business Venturing, 5(1), 15–29.

    Article  MathSciNet  Google Scholar 

  • Geroski, P. (2001). Exploring the niche overlaps between organizational ecology and industrial economics. Industrial and Corporate Change, 10(2), 507–540.

    Article  Google Scholar 

  • Gompers, P. (1997). An examination of convertible securities in venture capital investments. Harvard University Working Paper.

    Google Scholar 

  • Gompers, P. and J. Lerner (1999). The Venture Capital Cycle. Cambridge, MA: MIT Press.

    Google Scholar 

  • Granovetter, M. (1973). The strength of weak ties. American Journal of Sociology, 78, 1360–1380.

    Article  Google Scholar 

  • Gulati, R. (1995). Does familiarity breed trust? The implications of repeated ties for contractual choice in alliances. Academy of Management Journal, 38(1), 85–112.

    Article  MathSciNet  Google Scholar 

  • Gulati, R. and M. Gargiulo (1999). Where do interorganizational networks come from? American Journal of Sociology, 105(5), 1439–1494.

    Article  Google Scholar 

  • Hannan, M. and Freeman, J. (1977). The population ecology of organizations. American Journal of Sociology, 82, 929–964.

    Article  Google Scholar 

  • Hannan, M. and J. Freeman (1984). Structural inertia and organizational change. American Sociological Review, 49(2), 149–164.

    Article  Google Scholar 

  • Hayek, F. (1945). The use of knowledge in society. The American Economic Review, 35(4), 519–530.

    Google Scholar 

  • Henderson, R. (1993). Underinvestment and incompetence as responses to radical innovation: Evidence from the photolithographic alignment equipment industry. Rand Journal of Economics, 24(2), 243–266.

    Article  Google Scholar 

  • Henderson, R. and K. Clark (1990). Architectural innovation: The reconfiguration of existing product technologies and the failure of established firms. Administrative Science Quarterly, 35(1), 9–30.

    Article  Google Scholar 

  • Highfield, R. and R. Smiley (1987). New business starts and economic activity. International Journal of Industrial Organization, 5, 51–66.

    Article  Google Scholar 

  • Hoffman, H. and J. Blakely (1987). You can negotiate with venture capitalists. Harvard Business Review, 65(2), March–April, 6–24.

    Google Scholar 

  • Holmstrom, B. (1989). Agency costs and innovation. Journal of Economic Behavior and Organization, 12(3), 305–327.

    Article  Google Scholar 

  • Jovanovic, B. (1982). Selection and the evolution of industry. Econometrica, 50(3), 649–670.

    Article  MATH  MathSciNet  Google Scholar 

  • Kaplan, S. and P. Stromberg (1999). Financial contracting meets the real work: An empirical analysis of venture capital contracts. Working Paper, University of Chicago.

    Google Scholar 

  • Khilstrom, R. and J. Laffont (1979). A general equilibrium entrepreneurial theory of firm formation based on risk aversion. Journal of Political Economy, 87(4), 719–748.

    Article  Google Scholar 

  • Kirzner, I. (1973). Competition and Entrepreneurship. Chicago: University of Chicago Press.

    Google Scholar 

  • Kirzner, I. (1985). Discovery and the Capitalist Process. Chicago, IL: University of Chicago Press.

    Google Scholar 

  • Kirzner, I. (1997). Entrepreneurial discovery and the competitive market process: An Austrian approach. The Journal of Economic Literature, 35, 60–85.

    Google Scholar 

  • Klevorick, A., R. Levin, R. Nelson and S. Winter (1995). On the sources of significance of interindustry differences in technological opportunities. Research Policy, 24, 185–205.

    Article  Google Scholar 

  • Knight, F. (1921). Risk, Uncertainty, and Profit. New York, NY: Augustus Kelly.

    Google Scholar 

  • Larson, A. (1992). Network dyads in entrepreneurial settings: A study of the governance of exchange relationships. Administrative Science Quarterly, 37(1), 76–105.

    Article  Google Scholar 

  • Levin, R., A. Klevorick, R. Nelson and S. Winter (1987). Appropriating the returns from industrial research and development. Brookings Papers on Economic Activity, 3, 783–832.

    Article  Google Scholar 

  • McClelland, D. (1961). The Achieving Society. New York: Free Press.

    Google Scholar 

  • Martin, R. (1988). Franchising and risk management. American Economic Review, 78(5), 954–969.

    Google Scholar 

  • Michael, S. (1996). To franchise or not to franchise: An analysis of decision rights and organizational form shares. Journal of Business Venturing, 11, 57–71.

    Article  Google Scholar 

  • Miller, D. and C. Drodge (1986). Psychological and traditional determinants of structure. Administrative Science Quarterly, 31, 539–560.

    Article  Google Scholar 

  • Nelson, R. (1995). Recent evolutionary theorizing about economic change. Journal of Economic Literature, 33(1), 48–90.

    Google Scholar 

  • Pearce, W. (1992). The MIT Dictionary of Modern Economics. Cambridge MA: MIT Press.

    Google Scholar 

  • Romanelli, E. (1989) Environments and strategies of organization start-up: Effects on early survival. Administrative Science Quarterly, 34, 369–387.

    Article  ADS  Google Scholar 

  • Rotter, J. (1966). Generalized expectancies for internal versus external control of reinforcement. Psychological Monographs: General and Applied, 80, 609.

    Google Scholar 

  • Sahlman, W. (1990). The structure and governance of venture capital organizations. Journal of Financial Economics, 27, 473–521.

    Article  Google Scholar 

  • Sarasvathy, D., H. Simon and L. Lave (1998). Perceiving and managing business risks: Differences between entrepreneurs and bankers. Journal of Economic Behavior and Organization, 33, 207–225.

    Article  Google Scholar 

  • Schmookler, J. (1965). Technological change and economic theory. American Economic Review, 55(1–2), 333–341.

    Google Scholar 

  • Schumpeter, J.A. (1934). The Theory of Economic Development: An Inquiry into Profits, Capital Credit, Interest, and the Business Cycle. Cambridge, MA: Harvard University Press.

    Google Scholar 

  • Sexton, D. and Bowman, N. (1996). Validation of a personality index: Comparative psychological characteristics analysis of female entrepreneurs, managers, entrepreneurship students and business students. Frontiers of Entrepreneurship Research: Proceedings of the Sixth Annual Babson College Entrepreneurship Research Conference. Wellesley, MA, June 1996.

    Google Scholar 

  • Shackle, G. (1982). Imagination and the Nature of Choice. Edinburgh, Scotland: Edinburgh University Press.

    Google Scholar 

  • Shane, S. (1996). Explaining variation in rates of entrepreneurship in the United States: 1899–1988. Journal of Management, 22(5), 747–781.

    Google Scholar 

  • Shane, S. (1998). Making new franchise systems work. Strategic Management Journal, 19(7), 697–707.

    Article  Google Scholar 

  • Shane, S. (2000). Prior knowledge and the discovery of entrepreneurial opportunities, Organization Science, 11(4), 448–469.

    Article  Google Scholar 

  • Shane, S. (2001a). Technology opportunities and new firm creation. Management Science, 47(2), 205–220.

    Article  Google Scholar 

  • Shane, S. (2001b). Technology regimes and new firm formation. Management Science, 47(9), 1173–1181.

    Article  Google Scholar 

  • Shane, S. and D. Cable (2001). Social relationships and the financing of new ventures. Working Paper, University of Maryland.

    Google Scholar 

  • Shane, S. and T. Stuart (2002). Organizational endowments and the performance of university startups. Management Science, 48(1), 154–170.

    Article  Google Scholar 

  • Shane, S. and S. Venkataraman (2000). The promise of entrepreneurship as a field of research. Academy of Management Review, 26(1), 217–226.

    Article  Google Scholar 

  • Shankar, V., G. Carpenter and L. Krishnamurthi (1999). The advantages of entry in the growth stage of the product life cycle: An empirical analysis. Journal of Marketing Research, 36, 269–276.

    Article  Google Scholar 

  • Simon, H. (1955). A behavioral model of rational choice. Quarterly Journal of Economics, 69, 99–118.

    Article  Google Scholar 

  • Singh, R., G. Hills, G. Lumpkin and R. Hybels (2000). The entrepreneurial opportunity recognition process: Examining the role of self-perceived alertness and social networks. Working Paper, University of Illinois at Chicago.

    Google Scholar 

  • Slaven, A. (1993). Shipbuilding in nineteenth-century Scotland. In: S. Ville (ed.), Shipbuilding in the United Kingdom and the Nineteenth Century: A Regional Approach, St. John's, Newfoundland: International Maritime Economic History Association.

    Google Scholar 

  • Smith, A. (1776). An Inquiry Into the Nature and Causes of the Wealth of Nations. Edinburgh, Scotland: University of Edinburgh Press.

    Google Scholar 

  • Spector, P. (1992). Behavior in organizations as a function of locus of control. Psychological Bulletin, 91, 482–497.

    Article  Google Scholar 

  • Stewart, W. and P. Roth (2001). Risk taking propensity differences between entrepreneurs and managers: A meta-analytic review. Journal of Applied Psychology, 86(1), 145–153.

    Article  PubMed  Google Scholar 

  • Stigler, G. (1961). The economics of information. Journal of Political Economy, 69(3), 213–225.

    Article  Google Scholar 

  • Teece, D. (1981). The market for know-how and the efficient international transfer of technology. Annals of the American Academy, 458, 81–96.

    Article  Google Scholar 

  • Teece. D. (1986). Transactions cost economics and the multi-national enterprise: An assessment. Journal of Economic Behavior and Organization, 7(1), 21–46.

    Article  Google Scholar 

  • Teece, D. (1987). Technology transfer by multinational firms: The resource cost of transferring technological know-how. Economic Journal, 87, 242–261.

    Article  Google Scholar 

  • Tushman, M. and Anderson, P. (1986). Technological discontinuities and organizational environments. Administrative Science Quarterly, 31, 439–465.

    Article  Google Scholar 

  • Venkataraman, S. (1997). The distinctive domain of entrepreneurship research. Advances in Entrepreneurship, Firm Emergence and Growth, 3, 119–138.

    Google Scholar 

  • Von Hippel, E. (1988). The Sources of Innovation. New York: Oxford University Press.

    Google Scholar 

  • Weick, K. (1995). Sensemaking in Organizations. London, England: Sage Publications.

    Google Scholar 

  • Uzzi, B. (1996). The sources and consequences of embeddedness for the economic performance of organizations: The network effect. American Sociological Review, 61, 674–698.

    Article  Google Scholar 

  • Zucker, L., M. Darby and M. Brewer (1998). Intellectual human capital and the birth of U.S. biotechnology enterprises. American Economic Review, 88(1), 290–305.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2003 Kluwer Academic Publishers

About this chapter

Cite this chapter

Shane, S., Eckhardt, J. (2003). The Individual-Opportunity Nexus. In: Acs, Z.J., Audretsch, D.B. (eds) Handbook of Entrepreneurship Research. International Handbook Series on Entrepreneurship, vol 1. Springer, Boston, MA. https://doi.org/10.1007/0-387-24519-7_8

Download citation

  • DOI: https://doi.org/10.1007/0-387-24519-7_8

  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-0-387-24080-0

  • Online ISBN: 978-0-387-24519-5

  • eBook Packages: Springer Book Archive

Publish with us

Policies and ethics