Cognitive versatility and opportunity identification : the role of experience, intuition and analysis

Abstract

This study explores the extent to which the relationship between entrepreneurial experience and opportunity identification can be explained by cognitive strategy. Seventy-four technology-entrepreneurs completed a think-aloud protocol analysis exercise (Ericsson & Simon, 1993) in which they generated potential business ideas for three innovative technologies. In addition, they completed an online survey, which provided the data necessary to control for factors which may influence cognitive strategy and/or opportunity identification, including cognitive style and experience. Consistent with prior research, experienced entrepreneurs were found to be more proficient than novices at identifying opportunities. Extending previous studies, this study showed that cognitive versatility, which is an information processing approach characterised by high levels of both intuition and analysis, together with an ability to switch between them as needed (see Hodgkinson & Clarke, 2007), mediates the relationship between experience and opportunity identification.