Exploring the impact of entrepreneurial self-efficacy and effectuation on opportunity recognition

Atthaphon Mumi, Patsorn Siewsamdangdet, Tudsuda Imsuwan and Pornpiya Muangkhiew

International Journal of Entrepreneurship and Small Business, 2025, vol. 55, issue 2, 206-225

Abstract: Entrepreneurship research has examined the importance of opportunity recognition in the creation of new businesses. However, a complete understanding of this concept is lacking, requiring further investigation from multiple perspectives. This study utilises the effectuation theory to address this limitation, emphasising controlled resources and opportunity recognition through entrepreneurial self-efficacy (ESE) and effectuation. Our analysis of 293 potential entrepreneurs using partial least square structural equation modelling (PLS-SEM) demonstrated that entrepreneurial self-efficacy significantly affects opportunity recognition and is mediated by effectuation, which includes experimentation, affordable loss, flexibility, and pre-commitment. This study offers entrepreneurial self-efficacy, which is necessary for opportunity recognition, to the emerging theory of effectuation. It also addresses the need for theoretical research on entrepreneurial opportunities. Thus, our findings have important implications for academics and practitioners interested in understanding the complex dynamics of entrepreneurship and improving new venture creation.

Keywords: affordable loss; effectuation; entrepreneurial self-efficacy; ESE; experimentation; flexibility; opportunity recognition; pre-commitment. (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijesbu:v:55:y:2025:i:2:p:206-225

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