Opportunity Recognition, Evaluation and Exploitation in the Context of Prototyping

Abstract: This research advances the theoretical knowledge of the entrepreneurial process by investigating opportunity recognition, evaluation and exploitation in the context of prototyping. In particular, this thesis studies if, how and why the phenomenon changes the new venture creation process. Eight in-depth, semi-structured interviews were conducted with founders of startups offering a digital solution. The multiple case study approach allowed us to gather rich data to shed light on this phenomenon mostly neglected in entrepreneurial research thus far. Our results suggest that the context and the specificity of prototyping fundamentally change our understanding of the new venture creation process. Even though prototyping does not noticeably change the opportunity recognition phase, we see that both opportunity evaluation and exploitation are profoundly impacted by the phenomenon. Key regarding the evaluation is the increased opportunity confidence created through enhanced communication, feedback, and feasibility analyses, in the case of digital solutions accomplished through measurable data. Besides, for the context of this study, it has been found that prototypes are being exploited before the completion of the opportunity evaluation. Hence, we have seen that in the context of prototyping, the evaluation and exploitation phases are closely linked and inform each other. Lastly, this research delineates theoretical and practical implications based on our findings.