Social sources of information in opportunity recognition: Effects of mentors, industry networks, and professional forums

Abstract

Effects on opportunity recognition of three social sources of opportunity-related information (mentors, informal industry networks, participation in professional forums) were investigated. Results indicated that all three sources had direct, positive effects on opportunity recognition by entrepreneurs. In addition, the effects of two sources (mentors and professional forums) were mediated by schema strength, while effects of the third source (informal industry networks) were mediated by self-efficacy. Results are consistent with theories of opportunity recognition that emphasize the role of information and cognitive processes, and suggest that two social sources of information not systematically investigated in previous research-mentors and participation in professional forums-can assist entrepreneurs in identifying opportunities for new ventures. © 2006 Elsevier Inc. All rights reserved.