Learning While Doing: Prior Knowledge and Learning in the Opportunity Development Process

This study draws on learning and opportunity development theories to develop and test a conceptual model of learning during the opportunity development process. Using a sample of technology entrepreneurs in university- incubators, we investigate the unique and joint effects of both prior knowledge and new learning on venture outcomes of sales and innovativeness. Results suggest that venture sales is positively related to prior knowledge of demand whereas product innovativeness is positively related to prior knowledge of technology. Learning about demand during the opportunity development process positively relates to both venture sales and product innovativeness. However, contrary to expectations, low degrees of demand learning were found to enhance the relationship between prior demand knowledge and sales. Findings suggest that the types of knowledge and the sequence of learning processes within opportunity development have important implications for entrepreneurial outcomes.