Abstract
Entrepreneurs discover new business opportunities. Discovering and exploring the potential of a new business opportunity, however, are not sufficient to obtain entrepreneurial rents; subsequent exploitation must be taken. Successful entrepreneurs seem to shift from exploration (a focus on activities and/or investments to reduce technological and market uncertainties surrounding the potential opportunity) to exploitation (activities and/or investments committed to building efficient business operational systems to generate profits) at the most appropriate time.1 For example, http://Boo.com, a UK-based on-line fashion retailer, incurred large losses from what appears to be a hasty decision to pursue full-scale operations. Value America, one of the pioneers of on-line retailing, also appears to have suffered problems associated with premature exploitation by beginning full-scale operations based on an incomplete business model.
Original language | English |
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Title of host publication | Creating Value: Winners in the New Business Environment |
Editors | Michael A. Hitt, Raphael Amit, Charles E. Lucrier, Robert D. Nixon |
Publisher | Wiley-Blackwell |
Publication date | 09.2017 |
Pages | 127-143 |
ISBN (Print) | 9780631235118 |
ISBN (Electronic) | 9781405164092 |
DOIs | |
Publication status | Published - 09.2017 |
MoE publication type | A3 Book chapter |