Fueling recognition of opportunities through innovative behavior: Mediating role of team entrepreneurial passion and team innovation capacity

Abstract

Opportunities recognition is a crucial predictor to assess the viability of any business in a competitive, changing, and uncertain market. In this context, researchers have emphasized innovative behavior should be examined as a driver to recognize opportunities. Despite the growing interest in research on the impact of innovative behavior on the recognition of opportunities, studies are surprisingly scarce. This study seeks to determine how innovative behavior impacts on the recognition of opportunities through team entrepreneurial passion and team innovation capacity in a post-pandemic framework, supporting the mediating effects by resource-based vision theory and opportunity recognition theory. Data were collected in face-to-face surveys to 601 decision-makers of small and medium-sized enterprises (SMEs) in a textile cluster in Lima, Peru using a cross-sectional research design by partial least squares structural equation modeling (PLS-SEM). The findings show that (1) innovative behavior has a positive and significant effect on the recognition of opportunities, and (2) team entrepreneurial passion and team innovation capacity mediate this relationship. These finding enrich the theories and the result can serve as the highlights for management, policies designed for innovative behavior, team entrepreneurial passion, and team innovation capacity in business that generates a competitive advantage especially in developing countries.

Keywords:

• innovative behavior
• recognition of opportunities
• team entrepreneurial passion
• team innovation capacity
• SMEs

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Rocio Romani-Torres

Romani-Torres R., is a professor at the Centre for Innovation and Entrepreneurial Development at the Pontificia Universidad Catolica del Peru. PhD(c) Candidate at CENTRUM Catolica Graduate Business School, Lima, Peru – PUCP. Master in Business Administration and Health Services Administration. Specialization in Management at Georgetown University, USA. Lean Black Belt Six Sigma, SCRUM Master.

Diego Norena-Chavez

Norena-Chavez, D., PhD at CENTRUM Catolica Graduate Business School and PhD in Business Administration in France. MBA from Esade Business School and Master in Business Administration from Universidad Adolfo Ibáñez. Reserve Officer of the Peruvian Army. Director of the Doctorate in Administration at the University of Lima, Peru. Coach and Mentor of sustainable entrepreneurship.