Modeling the Role of Context Dependency in the Recognition and Manifestation of Entrepreneurial Opportunity

Abstract

The paper uses the SCOP theory of concepts to model the role of environmental context on three levels of entrepreneurial opportunity: idea generation, idea development, and entrepreneurial decision. The role of contextual-fit in the generation and development of ideas is modeled as the collapse of their superposition state into one of the potential states that composes this superposition. The projection of this collapsed state on the socio-economic basis results in interference of the developed idea with the perceptions of the supporting community, undergoing an eventual collapse for an entrepreneurial decision that reflects the shared vision of its stakeholders. The developed idea may continue to evolve due to continuous or discontinuous changes in the environment. The model offers unique insights into the effects of external influences on entrepreneurial decisions.