Patterns of Search and the Newness of Venture Ideas
12 Pages Posted: 28 Feb 2011
Date Written: 2006
Opportunity has recently received a lot of attention in the entrepreneurship literature because of its expected impact on various outcomes such as the mode of exploitation or profitability. In this paper we related the type of opportunity search (proactive, reactive or fortuitous discovery) to the newness of the venture idea in new business initiatives pursued by existing young firms (n=136). Using a typology by Davidsson (2003), we derive indicator for formative indices of newness. Results show that "searchers" achieve higher scores on "newness to market" than the fortuitous discovers. However, we were not able to distinguish between different types of search.
JEL Classification: M13
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