Social media for entrepreneurial opportunity and process: An effectuation perspective

Abstract

The literature has provided theoretical arguments and empirical evidence in support of the use of social media for both individuals and firm. However, few studies have investigated the functions of social media in an entrepreneurship context. To fill the gap, we examine the impacts of social media on the entrepreneurial process based on the effectuation framework. Using the data from 217 actual and potential entrepreneurs, this study shows that entrepreneurs’ attachment to social media is positively related to opportunity recognition, and such a relationship is negatively moderated by entrepreneurial passion. Our finding further reveals a positive association between opportunity recognition and pre-commitment seeking orientation. The positive relationship becomes stronger for individuals with higher entrepreneurial passion. The results of this study contribute to effectuation theory as well as highlight the importance of social media for entrepreneurs.