The Sarimner effect and three types of ever-abundant business opportunities Online publication date: Mon, 23-Aug-2010
by Kent Thoren, Terrence E. Brown
International Journal of Entrepreneurial Venturing (IJEV), Vol. 2, No. 2, 2010
Abstract: This article illustrates how corporate entrepreneurship links the firm's long term development process with the external environment. Based on the relaxation of several of the unrealistic assumptions in classic economic theory, it also illustrates how corporate entrepreneurship can be an important driver of change in the firm's environment. More specifically, the article demonstrates that: 1) one important consequence of entrepreneurship is the creation of more business opportunities, leading to an ever-abundant availability of new business potential; 2) these opportunities can be classified into three categories based on how they come into existence, and by whom they are exploited; 3) this leads to implications regarding strategic approaches to venture selection and pursuit. Each opportunity type is illustrated with examples from the online computer gaming industry. A number of preliminary managerial implications are presented, based on differences in the creation and nature of opportunities in each category.
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