Reconciling Diverse Approaches to Opportunity Research Using the Structuration Theory
Year: 2005
Type: preprint
Abstract: Diverse approaches have been used to investigate entrepreneurial opportunity, but have commonly produced an opportunity formation-recognition dichotomy. The structuration theory of Anthony Giddens is used to dissolve this dichotomy. Six approaches are discussed: (1) neoclassical equilibrium theory, (2) coevolutionary lock-in, (3) triggers for structural change, (4) effectuation/embeddedness/relationality, (5) path creation, and (6) prior knowledge and feedback. These theories often yield contradictory explanations and predictions of how entrepreneurs find or create opportunities. Structuration theory suggests that human action is guided by “scripts” that are formed in social and business structures. A script is accepted and used if it works, and rejected if it does not. An action that is legitimate, competent, and powerful will be repeated; when repeated, group and individual actions become scripts; they appear to be structural because they are observed in many places. Application of structuration theory to opportunity research suggests entrepreneurship is both a recognition and formation of scripts: a selection of common scripts and production (by modification) of uncommon scripts. An entrepreneur must understand and react to information (signals) about the effectiveness of scripts in recognizing and forming opportunities. Entrepreneurs learn and adopt common scripts; using uncommon ones has risks. The entrepreneur's difficult task is to choose scripts that are legitimate with business and social structures, competent enough to compete, and powerful enough to make a difference. Entrepreneurial activity is thus both enabled and constrained by business and social structure.(TNM)
Source: SSRN Electronic Journal
Authors: Chad Saunders, Mike Chiasson
Language: English
Subfield: Management of Technology and Innovation
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W3122431981