Measuring Opportunity-Recognition Beliefs

Abstract

The authors develop, illustrate, and validate an experimental approach to further empirical research on opportunity recognition. The approach emphasizes the use of recognition exercises that provide direct observations of participants’ efforts to think about ex-ante uncertain opportunities. To facilitate future uses of this approach, the authors develop a measure of opportunity-recognition beliefs and conduct three related studies to validate this measure. The authors conclude by offering concrete practical recommendations for future studies. Doing so, the authors contribute an integrated method to address conceptual and methodological issues that have hindered prior research on opportunity recognition, and thereby enable more rigorous investigations of this important activity.