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An Update to the Individual-Opportunity Nexus
Abstract and Figures
This chapter extends and elaborates the individual-opportunity nexus framework on entrepreneurship. First, the chapter discusses
in detail the existence of entrepreneurial opportunities, and the processes of opportunity discovery and exploitation. Second,
the chapter describes several typologies of opportunities. Third, the chapter discusses the importance of the locus of opportunity
discovery and exploitation.
Figures - uploaded by Jonathan T. Eckhardt
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... Opportunity is formed at the interface between the entrepreneurs and their environments or Shane and Eckhardt's individual-opportunity nexus (Eckhardt & Shane, 2010;Sarason et al., 2006). The nature of entrepreneurial opportunities and the critical role in stimulating entrepreneurial action under uncertainty is a matter of intense scholarly debate. ...
... The central theme of the Shanian discovery view is the individual-opportunity nexus, where the opportunities are independently existing, agentindependent external circumstances . Implicit in that argument, the existence of opportunity precedes discovery/exploitation (Eckhardt & Shane, 2010). The information value of the opportunity depends on the interpretation by the different observers. ...
Unfortunately, cocoa productivity in Côte d'Ivoire is low, and deforestation due to cocoa production is increasing; farmers do not have access to agricultural credit, and their incomes are meager to support their charges of cocoa production. to reduce the high dependence of their income on cocoa cultivation alone, to reduce extensive cultivation of cocoa, and preserve Ivorian forests that are disappearing because of cocoa
cultivation, a diversification of farmers' income is necessary. What business model for diversification of cocoa farmers' income? This article focuses on 3 points: cocoa farmers' income improvement, stopping deforestation, and improving rural entrepreneurship. The objectives of this research are to propose a business model able to increase up to 25% of cocoa farmers' incomes by 2050 by reducing deforestation and creating jobs in rural areas. With the help of primary and secondary data collection and using Microsoft
Excel to analyze data. It turns out that When fertilizer is used, variables charge is multiplied by 1,5, and variables charges and workforce represent respectively 43% and 57% of charges.43% of input constitutes 61,8% of fertilizer. The average variable charge is 625,1€, and fertilizer represents 52% of input charges and 18,2% of variable charges.
Without using fertilizer, gross revenue is 504€, and with fertilizer, gross revenue is 1512€. The average gross revenue is 919,8 € with an average of 730kg. This significant difference in gross revenue shows that fertilizer is essential for yields. When fertilizer is applied, the gross benefit is about 793€. This benefit represents 110% of variable charges. Regarding brut benefit when fertilizer is not used, it is about 29,4 €, which is 6,2% of variable charges. In the average case, the brut benefit is 324,8 €, i.e., 44,5% of variable
charges. As fertilizer plays a vital role in cocoa yields and farmers' income improvement, an important concept consists of granting fertilizer to cocoa farmers.
... Opportunity is formed at the interface between the entrepreneurs and their environments or Shane and Eckhardt's individual-opportunity nexus (Eckhardt & Shane, 2010;Sarason et al., 2006). The nature of entrepreneurial opportunities and the critical role in stimulating entrepreneurial action under uncertainty is a matter of intense scholarly debate. ...
... The central theme of the Shanian discovery view is the individual-opportunity nexus, where the opportunities are independently existing, agentindependent external circumstances . Implicit in that argument, the existence of opportunity precedes discovery/exploitation (Eckhardt & Shane, 2010). The information value of the opportunity depends on the interpretation by the different observers. ...
As a result of the increasing human population, the demand for agricultural food increases daily.According to the United Nations, the world population will exceed 9 billion by 2050. However, in agricultural areas, It is known that a decrease has occurred due to the use of land for nonagricultural purposes, various droughts, destruction of forests, soil erosion, and wrong urbanization practices. In addition, changes in the world climate have also caused a decrease in agricultural yield and production. Intensive chemical inputs were used in agricultural activities to meet the food needs of the increasing world population; high products have been achieved quickly with more fertilizer, high volume irrigation, and spraying. However, it is known that this production technique causes severe damage in nature and injuries that are very difficult, sometimes even impossible, to compensate for. For the agricultural sector to grow without harming the environment but protecting human and environmental health, there is a need to implement green entrepreneurship in the agricultural sector. Green entrepreneurship is a particular type of entrepreneurship that produces solutions to environmental problems and aims
to create an economical and sustainable world. There are many techniques for applying green entrepreneurship in the agricultural sector. Within the green entrepreneurship framework, techniques such as using animal manure and plant wastes in agricultural activities, recycling organic materials, and protecting plants with natural predators, not pesticides, are applied. When these techniques are controlled with digital tools, better results are obtained in a shorter time. Digital tools calculate the optimum input required for agricultural production. This reduces the amount of input used and therefore reduces the cost to the farmer. In addition, when digital tools are included in agricultural production, which is negatively affected by climate pollution around the world, it will not be affected by pollution and increasing agricultural product prices will increase the profit of the farmer. Analysis in 2016 found that 65% of poor working adults earn their living from agriculture. Increasing the income of farmers will improve their living conditions
and raise their socio-economic characteristics. The digitization of production techniques in the agricultural sector is also called agriculture 4.0 or precision agriculture (PA). While these technologies increase production efficiency, they facilitate agricultural waste control and protect the environment by reducing the use of chemicals. The digitalization of green entrepreneurship in agriculture reduces irrigation water, soil fertilizer, vehicle fuel, and other inputs used in agricultural production without reducing total production. Digitalization in agriculture makes it easier to disseminate user-friendly and accurate information among agricultural producers. This study examined the concept of green entrepreneurship used in the agriculture and food sector. successful applications worldwide were compiled and aimed to evaluate the digitalization of green entrepreneurship in agricultural activities.
... Opportunity is formed at the interface between the entrepreneurs and their environments or Shane and Eckhardt's individual-opportunity nexus (Eckhardt & Shane, 2010;Sarason et al., 2006). The nature of entrepreneurial opportunities and the critical role in stimulating entrepreneurial action under uncertainty is a matter of intense scholarly debate. ...
... The central theme of the Shanian discovery view is the individual-opportunity nexus, where the opportunities are independently existing, agentindependent external circumstances . Implicit in that argument, the existence of opportunity precedes discovery/exploitation (Eckhardt & Shane, 2010). The information value of the opportunity depends on the interpretation by the different observers. ...
The business model has become a well-understood concept in recent years. The business model describes how a business creates value, by what it does, and by incurring what costs. The business model is applied in the agricultural sector as well as in many sectors. Its version in the agricultural sector is called the agricultural business model. Agricultural business model explains how a farmer produces the service or product he will produce, in what way and by covering what costs. In doing so, it uses the business model canvas developed by Osterwalder. In this study, what the agricultural business model is has been explained and examples have been presented. Agricultural business model consists of 9 building blocks. These consist of key resources, key activities, key partners, value propositions, customer relationships, channels, customer segments, revenue streams and cost structure. The farmer must first write the value he will create in the agricultural business model. The farmer should write the value he will create in the value propositions, in the customer segments for whom he created this value, and in the channels building block how he will deliver this value to his customers. The farmer should write the expenses incurred while creating a value in the cost structure, the activities he did while creating the value in key activities, the people or institutions he partnered with while creating the value in key partners, and the resources he used while creating this value in key resources. Finally, the farmer must write the income he earns from the value he creates in the stream revenue building block. The agricultural business model has a critical importance in the work of the farmer in preparing, developing, improving and finally turning the business idea into a business model. In the created business model, the farmer will foresee possible problems and requirements and will be able to plan accordingly. Farmers using the agricultural business model will know the value they will create and how they will produce this value; will be able to anticipate its costs and take appropriate actions.
... Opportunity is formed at the interface between the entrepreneurs and their environments or Shane and Eckhardt's individual-opportunity nexus (Eckhardt & Shane, 2010;Sarason et al., 2006). The nature of entrepreneurial opportunities and the critical role in stimulating entrepreneurial action under uncertainty is a matter of intense scholarly debate. ...
... The central theme of the Shanian discovery view is the individual-opportunity nexus, where the opportunities are independently existing, agentindependent external circumstances . Implicit in that argument, the existence of opportunity precedes discovery/exploitation (Eckhardt & Shane, 2010). The information value of the opportunity depends on the interpretation by the different observers. ...
In recent decades, the ‘Home-Based Business’ (HBB) has become an increasingly important form of entrepreneurial activity, driven by the fact that this type of business is the largest and fastest growing subset in the overall business sector around the world, including formal and informal business activities. Hitherto, HBBs were comparatively under-researched, and literature on them was limited. Identifying HBB activities as formal/informal is controversial since each country has its business registration and licensing requirements. For any business entity to operate in any country, government authority must issue a license. A trading license is a permit given to
potential entrepreneurs to undertake a specific operation in a specified manner upon request by a regulating authority, usually after meeting specific requirements, including paying a specified fee (Gellhorn, 1958). Such a license enabled potential business owners to conduct business within the jurisdictional region of the government. Under normal circumstances, the government can censor a business or any other functioning activity if it is found to be carrying out its activities without a legal license. Licenses are thus an essential and indispensable aspect of contemporary economies .For example, in the UK, HBBs are formal business activities, and owners must register
their business with government officials (Mason et al., 2011). However, HBB in Kuwait is different since it is permissible and informal business activity simultaneously. No clear rules or regulations are inhibiting HBB owners from starting their business from/at home, and it is not registered with government authorities. Williams and Nadin (2012) mentioned that unregistered business activity is considered informal. Likewise, Welter and Small bone (2011) maintain that informal entrepreneurial activity is context-dependent. Accordingly, HBB activities in Kuwait are regarded as permissible informal business activities. Thus, this paper advances the understanding of informal HBB in Kuwait and explores the barriers to Home-Based Business formalization in Kuwait4. Given the absence of HBB data as they are hidden business activities in Kuwait, accessing
a representative sample is challenging. Saunders et al. (2016) recommended a snowball sampling technique consistent with qualitative research methods in such a sampling situation. The snowball sampling technique was drawn from friends and acquaintances; hence, a sample of 41 informal Kuwaiti HBB owners5 was interviewed in 2022. Data were analyzed using the thematic analysis technique. This research revealed that the high rental cost of premises, difficulty recruiting qualified workers, and access to finance requirements are considered the main barriers to HBB formalization in Kuwait. This is an exploratory study to determine perceived barriers to HBB formalization in Kuwait, so the findings of this research do not necessarily apply to other countries, considering the HBB in Kuwait as a different case. The findings might be helpful for the related state responsible authorities to organize the current situation regarding HBB activities in Kuwait.
... According to Peri (2012), states with high concentrations of foreign-born workers are experiencing much faster productivity growth due to certain technological developments. However, the economic gains of immigrants depend upon market structures, services, and business opportunities (Raith, 2000;Eckhardt and Shane, 2010). Immigrants represent 13.7% of the U.S. population, nearly three times more than in 1970 (Pew, 2017). ...
The study was to scrutinize the connection of immigrants, self-employment, and economic growth in North Carolina. The study used county level data mainly from the American Consumer Survey for the period of 2010-2017. Pooled OLS regression analysis was conducted using STATA. The results brought some significant insights. The findings highlight the significant and positive impacts of both immigrants and self-employment to the economic growth of the state. The counties with more self-employment opportunities are more attracted by immigrants. Growth in the construction, manufacturing, and service sectors show significant and positive impacts on self-employment opportunities. The lower the average income Counties show higher rates of self-employment. Growth in the service and education sectors, lead to higher household incomes. Thus, the investment priorities in the construction, services, and education sectors can accelerate the economic growth of North Carolina. JEL: D0, D12
... Once a firm finds it, the error becomes crystal clear and can be readily corrected, generating in the process profits to those who happened to have seen that error and have had the resources at hand to correct it. Thus, insightful projects are about exploitation happening after a discovery (see also Eckhardt & Shane, 2010). Given the exploitation analogy used, it is useful to higlight that the kind of exploitation that exists in insightful projects is remarkably different from the exploitation that happens in replicative projects. ...
What arouses entrepreneurial action? The role of entrepreneurial opportunities in stimulating entrepreneurial action under uncertainty is a subject of intense scholarly debate. This article engages in a crucial theoretical exploration to extend the boundaries of opportunity by reframing it as an artifact. Reframing the opportunity as an artifact (crystallized information) shifts the dialogue and perspectives. Through information visualization and mental modeling approaches, information is aggregated, integrated, and configured to generate an experience that triggers actions. The interaction, transformation, and representation of information are intended to reduce uncertainty and guide entrepreneurial enactment. This article presents an integrated information processing model showing how information excites, instigates, and motivates enactment. This contextualization aims to develop a descriptively accurate and prescriptively useful concept of opportunity as an artifact. Theoretically, analytically, and conceptually, the focus on information as the fundamental unit of analysis shifts the discussion by featuring inward to move the scholarly debate on opportunity forward. This re-pivoting can avoid the calls for abandonment and debunking of the opportunity construct.
In serious game design, addressing issues related to the value and opportunity of the development of a game is vital in the early stages, creating a more structured and robust approach by exploring the business case. Present frameworks provide an in-depth analysis of game design models but often fail to state the case of predetermined target markets and new funding options for serious game design. Crowdfunding is an emerging funding path for these games and one that leads the vanguard in breaking with traditional forms of raising funding. This chapter aims to help in addressing an existing limitation in the literature by reviewing an existing framework on game design and blending this with the concept of crowdfunding. This chapter proposes the extension of a framework that reflects the possibility for early crowdfunding of a serious game.
I critique M&W's recent AMR article, noting questionable premises and conclusions partly due to underutilization of past progress that is readily available. As to myself, I find further rumination of the objective/subjective or discovered/created status of ill-defined "opportunities' to be quite pointless. As I say in the manuscript: "As history has well demonstrated, this is not the kind of debate that is ever ‘resolved’—by M&W or otherwise—because when witnessing that a new venture has reached sustainable viability, one side can point to all the belief- and deontics-building efforts of the founders whereas the other side can remark that the (physical and social) world was evidently in such a state that it allowed the founders to do just that."
and
"I have elsewhere outlined in some detail what I believe serves entrepreneurship research better than us all adhering to M&W’s extreme alternative would do: Put the emerging venture rather than ‘opportunity’ center stage while acknowledging (with varying relative emphases) that subjective beliefs and agency by multiple stakeholders as well as external structure—along with features of the emerging ventures and evolving processes themselves—exert part of the influence that shapes the process of venture creation and its outcomes, and that this influence occurs through the entire process and not just at its initiation (Davidsson et al., 2021; Davidsson et al., 2020; Davidsson and Gruenhagen, 2021; Davidsson and Gruenhagen, 2021; Kimjeon and Davidsson, 2022)."
In this article, the authors examine how the stage of product life cycle in which a brand enters affects its sales through brand growth and market response, after controlling for the order-of-entry effect and time in market. The authors develop a dynamic brand sales model in which brand growth and market response parameters vary by stage of life cycle entry, namely, by pioneers, growth-stage entrants, and mature-stage entrants. The authors estimate the model using data on 29 brands from six pharmaceutical markets.
The results reveal advantages associated with entering during the growth stage. Growth-stage entrants reach their asymptotic sales level faster than pioneers or mature-stage entrants, are not hurt by competitor diffusion, and enjoy a higher response to perceived product quality than pioneers and mature-stage entrants. Pioneers reach their asymptotic sales levels more slowly than later entrants, and pioneer's sales, unlike later entrants’ sales, are hurt by competitor diffusion over time. On the positive side for pioneers, buyers are most responsive to marketing spending by pioneers. Mature-stage entrants are most disadvantaged; they grow more slowly than growth-stage entrants, have lower response to product quality than growth-stage entrants, and have the lowest response to marketing spending.
Why might firms be regarded as astutely managed at one point, yet subsequently lose their positions of industry leadership when faced with technological change? We present a model, grounded in a study of the world disk drive industry, that charts the process through which the demands of a firm's customers shape the allocation of resources in technological innovation—a model that links theories of resource dependence and resource allocation. We show that established firms led the industry in developing technologies of every sort—even radical ones—whenever the technologies addressed existing customers' needs. The same firms failed to develop simpler technologies that initially were only useful in emerging markets, because impetus coalesces behind, and resources are allocated to, programs targeting powerful customers. Projects targeted at technologies for which no customers yet exist languish for lack of impetus and resources. Because the rate of technical progress can exceed the performance demanded in a market, technologies which initially can only be used in emerging markets later can invade mainstream ones, carrying entrant firms to victory over established companies.
