Summary highlights
Introduction
The manner in which entrepreneurs recognize opportunities is a central interest of entrepreneurship research (Bergh et al. 2011; Hayton and Cholakova 2012). However, it seems that we still have plenty to explore to explain thoroughly how entrepreneurial opportunities are recognized. In this respect, one of the areas requiring further research is the period before the official establishment of a firm. The reason is that preparations of international small and medium-sized enterprises (SMEs) can begin well before the firms are set up (Hewerdine and Welch 2013). Consequently, it has been suggested that researchers should focus on activities which take place before the establishment of a firm (Hewerdine and Welch 2013) (henceforth described by the term pre-launch period). Moreover, recent studies have suggested that we could further investigate the antecedents of entrepreneurial opportunity recognition and exploitation to explain the opportunity phenomenon in more detail (Kuckertz et al. 2017). This could be achieved, for instance, by investigating the role of prior knowledge (George et al. 2016) and prior experience (Haynie et al. 2009) in relation to entrepreneurial opportunity recognition.“The process of how ideas come into existence, is, an inherent aspect of entrepreneurial narrative” (Gartner 2007).
Theory and literature review
Entrepreneurial opportunity
Strategic orientation
Methodology
Data collection and analysis
Findings
Educational background | Work history in MNE | Entrepreneurial activity in MNE | Role in opportunity recognition | Motivation for entrepreneurship | |
---|---|---|---|---|---|
Mike | ▪ Automation engineer ▪ Bachelor’s degree | ▪ 1997–2013 ▪ Program manager, product management | ▪ Several independent product launches | ▪ Commercially oriented knowhow (industry-market interface) | ▪ Strong attachment to the opportunity ▪ Long-term dream to establish own software firm |
Tom | ▪ Computer science, PhD | ▪ 2009 onwards ▪ Software engineer, team leader, senior architect, system architect | ▪ Participating in several innovation competitions | ▪ Technological knowhow (hands-on knowledge about the innovation) | ▪ Strong attachment to the opportunity ▪ Desire to create new things |
The initial discovery of the entrepreneurial opportunity
Transformation into a mobile network solution and the aftermath
During this time, the team realized that things were no longer the same in the MNE. Tom mentioned that the MNE was not investing any more in the implementation of innovation as it had done previously in its history:“In the Middle East there was a technologically really capable team, but it was maybe in a sort of early stage. In a sense it was annoying that it would have been great to continue, because we could have developed it into a peak team, but they [decision makers] were in a sort of double-lock mode, and who had gone through a couple of codeterminations, it ended so that I had to dismiss these people, before [dismissing] myself.” (Mike, Follow-up interview #11)
Regardless, Mike and Tom at this stage were willing to continue working on the opportunity even on their own. Hence, the initial discussions about spinning off the company took place in the spring of 2012 between Mike and Tom. Nevertheless, the idea of establishing a company was something that Mike especially held dear. As Tom mentioned in the interview, “No, I think in the planning process, about being a company, it was only Mike” (Tom). Moreover, Mike’s motive of launching his own business seemed to have taken root years ago as he had been collaborating with several startups. Mike got acquainted with various innovations while working in the MNE and was impressed by the capabilities of these firms, as he describes:“Yeah if you think about the golden age of MNE, they were creating new stuff. And suddenly, no. The last ten years they never created something new. They just evaluate the things, like 3G, 4G, data. But not something new, something changing stuff…This is something that, you know, it’s the lifecycle. It must be done, because you cannot be at the top all the time.” (Tom)
When Mike was offered the possibility of developing a spin-off from the project in the spring of 2012, he mentioned that it was the change required to fulfill a long-held dream. Thus, the offer was difficult to refuse, even though his employment in the MNE was not in immediate danger. For Tom, the reasons were quite different. He had experienced the drawbacks of working in the MNE as an employee and found that the working style that he preferred was no more possible:“During the time in the MNE. And well, that of course many. Many firms approached us then and I got familiarized to many technological solutions and I searched new suppliers for my own practices… persons with skills, new knowhow… And well, there was always like that. Dream that someday I will establish an own software company in North America…” (Mike)
Nevertheless, the connecting factor for both individuals was their strong commitment to the opportunity in which they had invested for 2 years. For instance, Tom describes his connection to the opportunity in the following words: “I’m always in love with WTC because it’s more like my baby there. It also runs some algorithms that I was… invented, let’s say, during my PhD studies…” (Tom). Similarly, Mike states that “I have these own... children. I say that I have four children with the MNE and I regard them with a great passion, like my children.” (Mike).“Of course I like, doing something, being part in a big corporation you spend your time with politics and your managerial stuff than actually doing. Creating new stuff, or… just work. Enjoying your work and go to enjoy it, not just discussing all the time and create all kind of problems there. These are the main reasons why I left the MNE.” (Tom)