Schumpeterian and Kirznerian opportunities: An empirical investigation of opportunity types

Although the identification and exploitation of opportunities is central in many modern theories of entrepreneurship, empirical investigations of opportunity types are scarce. This paper empirically explores the distinction between Schumpeterian and Kirznerian opportunities by analyzing survey data of 184 high-tech small business entrepreneurs engaging in opportunity exploitation. First, a multidimensional measure is developed to document the extent in which entrepreneurial opportunities are either Schumpeterian or Kirznerian. This is assessed on five bipolar dimensions labeled as disequilibrating-equilibrating, new information-no new information, very innovative less innovative, rare-common, and creation-discovery. Next, we explore by which entrepreneurs both types of opportunities are identified and exploited. We find that Schumpeterian opportunities are more likely to be pursued by individuals with strong ambitions to grow their company, and which actively search for innovative ideas and means. In addition their strategic orientation is for their ventures to satisfy future needs through proactive product development, while individuals with a strategic focus on the exploitation of present demands are more likely to pursue Kirznerian opportunities. Jelcodes:M13,O31 Schumpeterian and Kirznerian opportunities: An empirical investigation of opportunity types