Designing an Opportunity-Evaluating Model for Software Entrepreneurship in Conditions of Uncertainty: a Fuzzy Approach
Subject Areas : Management (system orientation)Shiva MehdizadehAghdam 1 , Jahangir Yadollahi Farsi 2 , Narges Imanipour 3
1 - Ph.D. Candidate, Department of Entrepreneurship, Qazvin Branch, Islamic Azad University, Qazvin, Iran
2 - Professor of Entrepreneurship Department, Faculty of Entrepreneurship, University of Tehran, Tehran, Iran
3 - Associate Professor, Department of Entrepreneurship, Faculty of Entrepreneurship, University of Tehran, Tehran, Iran
Keywords: Uncertainty, fuzzy approach, Technological entrepreneurship, Opportunity evaluation,
Abstract :
Choosing a suitable opportunity in conditions of uncertainty is a common problem for entrepreneurs. The software startup procedure is particularly vulnerable to extreme uncertainty and competition; therefore, analyzing opportunities and threats is critical for software entrepreneurs. Hence, the present study aims to identify the criteria of uncertainty in evaluating entrepreneurial opportunities in technology-driven businesses of the software industry with a fuzzy approach using a mixture of qualitative and quantitative methods. The statistical population of the research includes experts in the software industry. In this regard, first, a theoretical basis was obtained by examining the background. Second, we performed semi-structured interviews and extracted and coded 115 phrases. Third, after combining the general and subsidiary phrases, we reached 84 phrases, and by combining similar phrases, we selected 29 phrases. Forth, after categorizing those phrases, we determined the six axes of uncertainty and used the fuzzy Ahp technique and Geometric Buckley averaging in Microsoft Excel to rank those six axes as follows: 1-uncertainty in resources, 2-uncertainty in competition, 3-technological uncertainty, 4-political uncertainty, 5-uncertainty in agents, and 6-customer uncertainty. Finally, the model of evaluating entrepreneurial opportunities in conditions of uncertainty was designed using a fuzzy approach in the software industry.
Autio, E., Dahlander, L., & Frederiksen, L. (2013). Information Exposure, Opportunity Evaluation, and Entrepreneurial Action: An Investigation of an Online User Community. Academy of Management Journal, 56(5), 1348-1371. doi:10.5465/amj.2010.0328
Bailey, R. C. (2021). Evaluation of International Market Opportunities: A Creation Versus Discovery Perspective. Academy of Management Proceedings, 2021(1), 12716. doi:10.5465/AMBPP.2021.12716 abstract
Batev, T., & Marks, J. (2019). Temporal Mediation of Uncertainty within Entrepreneurial Opportunity Evaluation. Academy of Management Proceedings, 26(1), 1-22. doi:10.5465/AMBPP.2019.18765abstract
Benegal, S. (2019). Opportunity Evaluation through Social Interactions and Entrepreneurial Micro-action. Academy of Management Proceedings, 2019(1), 17436. doi:10.5465/AMBPP.2019.17436abstract
Bishop, K., & Nixon, R. D. (2006). VENTURE OPPORTUNITY EVALUATIONS: COMPARISONS BETWEEN VENTURE CAPITALISTS AND INEXPERIENCED PRE-NASCENT ENTREPRENEURS. Journal of Developmental Entrepreneurship, 11(01), 19-33. doi:10.1142/s1084946706000246
Bryant, P. (2007). Self‐regulation and decision heuristics in entrepreneurial opportunity evaluation and exploitation. Management Decision, 45(4), 732-748. doi:10.1108/00251740710746006
Chan, C. S. R., & Parhankangas, A. (2017). Crowdfunding Innovative Ideas: How Incremental and Radical Innovativeness Influence Funding Outcomes. Entrepreneurship Theory and Practice, 41(2), 237-263. doi:10.1111/etap.12268
Chandra, Y. (2017). A time-based process model of international entrepreneurial opportunity evaluation. Journal of International Business Studies, 48(4), 423-451. doi:10.1057/s41267-017-0068-x
Corbett, A. C. (2005). Experiential Learning Within the Process of Opportunity Identification and Exploitation. Entrepreneurship Theory and Practice, 29(4), 473-491. doi:10.1111/j.1540-6520.2005.00094.x
Dahlqvist, J., & Wiklund, J. (2012). Measuring the market newness of new ventures. Journal of Business Venturing, 27(2), 185-196. doi:10.1016/j.jbusvent.2010.12.001
Davidsson, P. (2015). Entrepreneurial opportunities and the entrepreneurship nexus: A re-conceptualization. Journal of Business Venturing, 30(5), 674-695. doi:10.1016/j.jbusvent.2015.01.002
Digan, S. P., Kerrick, S. A., & Cumberland, D. M. (2015). The Role of Knowledge on Opportunity Evaluation Decisions: An Example from Franchising. Academy of Management Proceedings, 1, 15447. doi:10.5465/ambpp.2015.15447abstract
Dimov, D. (2010). Nascent Entrepreneurs and Venture Emergence: Opportunity Confidence, Human Capital, and Early Planning. Journal of Management Studies, 47(6), 1123-1153. doi:10.1111/j.1467-6486.2009.00874.x
Foo, M.-D. (2009). Emotions and Entrepreneurial Opportunity Evaluation. Entrepreneurship Theory and Practice, 35(2), 375-393. doi:10.1111/j.1540-6520.2009.00357.x
Grichnik, D., Smeja, A., & Welpe, I. (2010). The importance of being emotional: How do emotions affect entrepreneurial opportunity evaluation and exploitation? Journal of Economic Behavior & Organization, 76(1), 15-29. doi:10.1016/j.jebo.2010.02.010
Gruber, M., Kim, S. M., & Brinckmann, J. (2015). What is an Attractive Business Opportunity? An Empirical Study of Opportunity Evaluation Decisions by Technologists, Managers, and Entrepreneurs. Strategic Entrepreneurship Journal, 9(3), 205-225. doi:10.1002/sej.1196
Gupta, V. K., Goktan, A. B., & Gunay, G. (2014). Gender differences in evaluation of new business opportunity: A stereotype threat perspective. Journal of Business Venturing, 29(2), 273-288. doi:10.1016/j.jbusvent.2013.02.002
Hastie, R. (2001). Problems for Judgment and Decision Making. Annual Review of Psychology, 52(1), 653-683. doi:10.1146/annurev.psych. 52.1.653
Haynie, J. M., Shepherd, D. A., & McMullen, J. S. (2009). An Opportunity for Me? The Role of Resources in Opportunity Evaluation Decisions. Journal of Management Studies, 46(3), 337-361. doi:10.1111/j.1467-6486.2009.00824.x
Ireland, R. D., Hitt, M. A., & Sirmon, D. G. (2003). A Model of Strategic Entrepreneurship: The Construct and its Dimensions. Journal of Management, 29(6), 963-989. doi:10.1016/s0149-2063_03_00086-2
Keh, H. T., Der Foo, M., & Lim, B. C. (2002). Opportunity Evaluation under Risky Conditions: The Cognitive Processes of Entrepreneurs. Entrepreneurship Theory and Practice, 27(2), 125-148. doi:10.1111/1540-8520.00003
Kim, J.-S., Choi, J. H., & Lee, Y.-Z. (2010). The Fretting Wear Characteristics of CrN and TiN Coating on Steam Generator Tube. (44199), 57-58. doi:10.1115/IJTC2010-41147
Krueger, N. F., Reilly, M. D., & Carsrud, A. L. (2000). Competing models of entrepreneurial intentions. Journal of Business Venturing, 15(5), 411-432. doi:10.1016/S0883-9026(98)00033-0
Marinho, M., Sampaio, S., & Moura, H. (2017). Managing uncertainty in software projects. Innovations in Systems and Software Engineering, 14(3), 157-181. doi:10.1007/s11334-017-0297-y
McKelvie, A., Haynie, J. M., & Gustavsson, V. (2011). Unpacking the uncertainty construct: Implications for entrepreneurial action. Journal of Business Venturing, 26(3), 273-292. doi:10.1016/j.jbusvent.2009. 10.004
McMullen, J. S., & Shepherd, D. A. (2006). Entrepreneurial Action And The Role Of Uncertainty In The Theory Of The Entrepreneur. Academy of Management Review, 31(1), 132-152. doi:10.5465/amr.2006.19379628
Mehdizadeh Aghdam, S., Yadollahi Farsi, J., & Imanipour, n. (2022). Evaluating Entrepreneurial Opportunities with Bibliometric Analysis Approach (2000-2022). Public Policy In Administration, 13(48), 85-100. [In Persian]. doi:10.30495/ijpa.2022.66533.10857
Mehdizadeh Aghdam, S., Yadollahi Farsi, J., & narges, I. (2022). Identifying the effect of uncertainty criteria in evaluating entrepreneurial opportunities in technology - based ( Case study : Software industry ). Future study Management, 32(4), 137-147. [In Persian]. doi:10.30495/jmfr.2022.65777.2637
Mitchell, J. R., & Shepherd, D. A. (2010). To thine own self be true: Images of self, images of opportunity, and entrepreneurial action. Journal of Business Venturing, 25(1), 138-154. doi:10.1016/j.jbusvent.2008.08.001
Murnieks, C. Y., Cardon, M. S., Sudek, R., White, T. D., & Brooks, W. T. (2016). Drawn to the fire: The role of passion, tenacity and inspirational leadership in angel investing. Journal of Business Venturing, 31(4), 468-484. doi:10.1016/j.jbusvent.2016.05.002
Nambisan, S. (2017). Digital Entrepreneurship: Toward a Digital Technology Perspective of Entrepreneurship. Entrepreneurship Theory and Practice $V 41(6), 1029-1055.
Paternoster, N., Giardino, C., Unterkalmsteiner, M., Gorschek, T., & Abrahamsson, P. (2014). Software development in startup companies: A systematic mapping study. Information and Software Technology, 56(10), 1200-1218. doi:10.1016/j.infsof.2014.04.014
Rose, J. (2012). Software Entrepreneurship: two paradigms for promoting new information technology ventures. Software Innovation Aalborg University: Aalborg, Denmark, 1-98.
Sangaiah, A. K., Samuel, O. W., Li, X., Abdel-Basset, M., & Wang, H. (2018). Towards an efficient risk assessment in software projects–Fuzzy reinforcement paradigm. Computers & Electrical Engineering, 71, 833-846. doi:10.1016/j.compeleceng.2017.07.022
Shane, S., & Venkataraman, S. (2000). The Promise of Entrepreneurship as a Field of Research. Academy of Management Review, 25(1), 217-226. doi:10.5465/amr.2000.2791611
Shepherd, D. A., McMullen, J. S., & Jennings, P. D. (2007). The formation of opportunity beliefs: overcoming ignorance and reducing doubt. Strategic Entrepreneurship Journal, 1(1‐2), 75-95. doi:10.1002/sej.3
Shepherd, D. A., Patzelt, H., & Baron, R. A. (2013). “I Care about Nature, but …”: Disengaging Values in Assessing Opportunities that Cause Harm. Academy of Management Journal, 56(5), 1251-1273. doi:10.5465/amj.2011.0776
Tomy, S., & Pardede, E. (2017). Opportunity Evaluation Using Uncertainties in Software Entrepreneurship. Entrepreneurship Research Journal, 7(3), 1-16. doi:10.1515/erj-2016-0044
Tumasjan, A., Welpe, I., & Spörrle, M. (2012). Easy Now, Desirable Later: The Moderating Role of Temporal Distance in Opportunity Evaluation and Exploitation. Entrepreneurship Theory and Practice, 37(4), 859-888. doi:10.1111/j.1540-6520.2012.00514.x
Vogel, P. (2017). From Venture Idea to Venture Opportunity. Entrepreneurship Theory and Practice, 41(6), 943-971. doi:10.1111/etap.12234
Welpe, I. M., Spörrle, M., Grichnik, D., Michl, T., & Audretsch, D. B. (2012). Emotions and Opportunities: The Interplay of Opportunity Evaluation, Fear, Joy, and Anger as Antecedent of Entrepreneurial Exploitation. Entrepreneurship Theory and Practice, 36(1), 69-96. doi:10.1111/j.1540-6520.2011.00481.x
Williams, D. W., & Wood, M. S. (2015). Rule-Based Reasoning for Understanding Opportunity Evaluation. Academy of Management Perspectives, 29(2), 218-236. doi:10.5465/amp.2013.0017
Wood, M. S., & Williams, D. W. (2014). Opportunity Evaluation as Rule-Based Decision Making. Journal of Management Studies, 51(4), 573-602. doi:10.1111/joms.12018
Wood, M. S., McKelvie, A., & Haynie, J. M. (2014). Making it personal: Opportunity individuation and the shaping of opportunity beliefs. Journal of Business Venturing, 29(2), 252-272. doi:10.1016/j.jbusvent. 2013.02.001
Yunfei, S., Dongming, X., & Peter, G. (2014). Software startup growth: the role of dynamic capabilities, IT innovation, and customer involvement, 1-11.