The heuristics applied by tech entrepreneurs in the Middle East during opportunity evaluation

Abstract

Purpose This study aims to explore the heuristics applied by tech entrepreneurs in the Middle East during the opportunity evaluation process. Design/methodology/approach A multiple case-based methodology was applied, which consisted of semi-structured interviews with entrepreneurial experts from different cities in the Middle East. Qualitative data analysis was then performed with inductive thematic coding using the Eisenhardt method. Findings The results suggest that entrepreneurs mostly use six heuristics to evaluate opportunities quickly. Three of them are related to the opportunity as an abstract idea, and three are connected with the person (s) involved in the opportunity. In addition, entrepreneurs in the Middle East were more interested in the personal characteristics of the opportunity presenter than in the opportunity itself. Research limitations/implications Identifying the heuristics applied by experts may neglect the perspective of the community of entrepreneurs as a whole. Hence, future research should target a wider segment of entrepreneurs. Furthermore, the effect of applying such heuristics on the strategic growth of startups remains an open question. Practical implications The identified heuristics are aligned with the hands-on approach of entrepreneurship and can be applied as a decision-making technique for aspiring entrepreneurs who seek to succeed in this region. Originality/value This study explores the under-examined topic of heuristics in opportunity evaluation within the regional context of the Middle East, which has also been scarcely investigated. It sheds light on the importance of cultural factors in identifying the cognitive shortcuts used in a business context.

Financial Literacy's Moderating Effect on Project Selection with Heuristic-Driven Biases: SMEs’ Entrepreneurial Market Development in Pakistan

“…As entrepreneurship has always been full of risks, good decision-making is crucial to succeed, no matter how much data and time you have. Moreover, limited time and money made it difficult for entrepreneurs to decide which opportunity is worth pursuing (Hjeij, 2022). On the other hand, adopting these heuristics with empirical study may result in better judgment and decision-making, severely affecting the organization's project management decisions (Simon, 1991;Adil et al, 2021).…”