Experiential Learning within the Process of Opportunity Identification and Exploitation

Abstract

473The article uses experiential learning theory to magnify the importance of learning within the process of entrepreneurship. Previous research details the contributions of prior knowledge, creativity, and cognitive mechanisms to the process of opportunity identification and exploitation; however, the literature is devoid of work that directly addresses learning. The extant research assumes learning is occurring but does not directly address the importance of learning to the process. To fully understand the nature of the entrepreneurial process, researchers must take into account how individuals learn and how different modes of learning influence opportunity identification and exploitation. This article makes connections between knowledge, cognition, and creativity to develop the concept of learning asymmetries and illustrates how a greater appreciation for the differences in individual learning will fortify entrepreneurship research.

The good, the bad, and the talented: Entrepreneurial talent and selfish behavior

“…Empirical evidence suggests that, in particular, opportunity recognition and self-assessed creativity are positively correlated (e.g. Hills et al, 1999;Ward, 2004;Corbett, 2005). Likewise, the evidence on self-assessed business talent and entrepreneurial intentions and actions is well established (Chen et al, 1998;Krueger et al, 2000;Zhao et al, 2005;Cassar and Friedman, 2009).…”

Differences in students’ understanding of opportunity process matters for their learning!

“…For example, discovery theory of Alvarez and Barney (2007) describes a situation where opportunities exist as objective phenomena independent of individual action while creation theory assumes that entrepreneurs engage in iterative learning process that ultimately could lead to the formation of an opportunity. On the other hand Corbett (2005) argues, in light of Colby"s experiential learning theory, that the best performance in different phases of the opportunity identification and exploitation process is achieved by individuals with different learning modes. This indicates that not only does the opportunity define the learning process, but also the importance of understanding individual learning modes.…”

“…However, even though opportunities are regarded as a core element, process or competence in entrepreneurship, only recently has the question of how to teach or learn these opportunity-related competences started to attract scholars (Saks and Gaglio 2002, Corbett 2005, Lumpkin and Lichtenstein 2005. For Kirby (2007), for example, entrepreneurship education requires the development of the abilities to perceive opportunities.…”

Marketing planning and digital customer loyalty data in small business

“…Central to this is the experiential knowledge of the owner-manager and how, as an aspect of their MO, it could determine their use, or lack thereof, of formalized retailer loyalty card marketing intelligence. Corbett (2005) focussed on experiential learning within the process of opportunity identification and exploitation. In this context, Shane and Venkataraman (2000) indicate that small business ownermanagers "must possess prior knowledge and the cognitive properties" in order to be able to identify, develop and exploit opportunities.…”

“…Digital customer loyalty data Corbett (2005) relates experiential learning in small businesses to an information acquisition and transformation experience. Significantly, MO is viewed as a transformational competency, requiring the transformation of marketing intelligence into marketing planning responses aimed at achieving customer satisfaction and competitive advantage (Armario et al, 2008).…”