ANTECEDENTS AND EXPLIOTATION OUTCOMES OF OPPORTUNITY IDENTIFICATION PROCESSES.

This research focuses on opportunity identification and exploitation processes. Opportunity identification is a multistage process that includes four empirically derived sequences: (1) learn about a market need-- replicate a product (Learn/Replicate), (2) learn about a market need--innovate a product (Learn/Innovate), (3) learn about an existing income stream--acquire the income stream (Learn/Acquire), and (4) innovate a product--educate customers (Innovate/Educate). Our study provides evidence that prior knowledge and human capital characteristics among entrepreneurs are significant predictors of the different opportunity identification sequences. In addition, firm level outcomes (exploitation) are significantly influenced by opportunity identification sequences.