Exercising entrepreneurial opportunities: The role of information-gathering and information-processing capabilities of the firm
Article first published online: 23 MAR 2009
© 2009 Strategic Management Society. Published by John Wiley & Sons, Ltd.
Strategic Entrepreneurship Journal
Special Issue: Opportunities, Organizations, and Entrepreneurship: Empirical Implications and Application
Volume 2, Issue 4, pages 357–375, December 2008
How to Cite
Sleptsov, A. and Anand, J. (2008), Exercising entrepreneurial opportunities: The role of information-gathering and information-processing capabilities of the firm. Strat.Entrepreneurship J., 2: 357–375. doi: 10.1002/sej.60
- Issue published online: 23 MAR 2009
- Article first published online: 23 MAR 2009
- entrepreneurial opportunities;
- information processing;
- organizational capabilities
In this article, we study two capabilities that influence firms' effectiveness in exercising entrepreneurial opportunities: information-gathering and information-processing capability. We argue that their effects are not always positive or symmetrical. When the firm's information-processing capability is low, high levels of its information-gathering capability may result in lower effectiveness because of managerial cognitive overload. The effects of high information-processing capability are more nuanced and depend on whether the firm's information processing has experiential or cognitive character. Our analysis offers a counterintuitive insight: the firm may fail to exercise entrepreneurial opportunities effectively not only when it has low levels of information capabilities, but also when its levels are high but unbalanced. Copyright © 2009 Strategic Management Society.