Interpersonal trust, vigilance and social networks roles in the process of entrepreneurial opportunity recognition

Abstract

This research examines the roles that an entrepreneur’s dispositions to interpersonal trust, and vigilance play in the process of opportunity recognition. An entrepreneur’s use of social networks as a resource in opportunity recognition is also examined. The basis of this investigation was an empirical study of Information and Communication Technology (ICT) entrepreneurs in Queensland, Australia. A series of 12 hypotheses were developed and tested in this research. Despite a modest sample size, five of the hypothesised relationships were supported. An entrepreneur’s dispositions to both trust and vigilance affected the outcomes of their opportunity identification behaviours. A disposition to excess vigilance inhibited the development of entrepreneurial opportunities. While, an extended social network and a trusting disposition were found to facilitate the development of entrepreneurial opportunities.