Knowledge Of The Customer Commerce Essay

The competitory place of house is defined by a figure of different factors like alone resources, relationships etc. that needs to be evaluate and renewed over clip ( Alvarez, 2003 ) .

There are legion illustrations of large multinational and successful companies that started up in the garage of one ambitious, idealistic, or sometimes possibly naif individual. Most of the times it takes clip to start-up a new endeavor and they are non considered to turn internationally at all in this early province. Yet still, some people manage to make such a successful transnational company.

Entrepreneurship is a wide topic. Many theories has been developed on the entrepreneurial procedure, the traits, features and behavior of the enterpriser etc. Harmonizing to Venkataraman ( 1997 ) , the entrepreneurial procedure is about the discovering, rating and exploiting of chances. Many factors influence these three stairss in the entrepreneurial procedure. Venkataraman ( 1997 ) means that in order to work an chance the enterpriser must be able to detect and acknowledge the entrepreneurial chance. Harmonizing to Kirzner ( 1997 ) , “ entrepreneurial chances exist when different agents have insight into the value of resources that other agents do non, and the agents with penetrations act upon these un-exploited chances ” ( Quote from Alvarez, 2003, page 251 ) .

After detecting an entrepreneurial chance, the enterpriser has to happen ways of seting resources he/she possesses to utilize. Its a challenge to make this in such a manner that it is efficient. Combining of resources could give the enterpriser an competitory advantage. When the enterpriser does non possess the right resources he/she must either re-think the development procedure or travel and happen the right resources in order to be able to work the chance. The different fetal alcohol syndromes of discovering, measuring and working an chance might inquire for different usage and input of different resources.

There are a batch of different types of resources to see when it comes to the entrepreneurial procedure. In this paper we will concentrate on how the calling experience of the enterpriser and the cognition about the client as resources are of influence in the entrepreneurial procedure. We will place in which stages these resources are used and we will analyse the possible differences in use in the different phases of the entrepreneurial procedure.

Harmonizing to Shane ( 2000 ) there are several traits that are of influence on a individual ‘s ability to acknowledge chances, being: prior cognition, experience, societal webs and cognitive behaviour. Besides that, we found back uping theories on the importance of those traits in a more focused position: ‘The more calling experience one has, the more effectual is the enterpriser in acknowledging and moving on entrepreneurial chances ‘ ( Politis, 2005 ) . The focal point on the cognition on clients specifically we found interesting because ‘products and services must be based on existent client demands, non on the premise that if you introduce something there will be an automatic demand for it. ‘ ( Cowley, 2002 )

1.2 Disposition

Chapter One: Contains an debut to our chief capable and treatment about resources like cognition.

Chapter Two: Contains our literature reappraisal on resource-based theory ‘s, anterior cognition of markets, clients, clients jobs etc.

Chapter Three: In this chapter we will show our methodological analysis on how our research will be done.

Chapter Four: A Contains our analysis our the empirical informations handed to us by our examinator Navid Ghannad. Here we will analyze our empirical informations by associating it with our theoretical model.

Chapter Five: Here we will show our decisions.

Literature reappraisal

In order to acquire to the topics career experience

2.1 Entrepreneurship

As for today, there is still no understanding on the definition of “ the entrepreneurship ” . Nor is there an agreed on definition of the “ enterpriser ” . In the early old ages of the twentieth century, Joseph Schumpeter enriched this field of research by being one of the first to come up with a specified definition on these footings. Schumpeter ( 1934 ) definition of an enterpriser is based on invention, which he defines by either presenting new merchandises, new methods, new markets and/or new signifiers of organisations with the purpose to make wealth. This does non connote straight the creative activity of new houses. Entrepreneurship could, harmonizing to this theory, besides be conducted within a bing house. Schumpeter ‘s A theory and boundary of the footings has caused the treatment on this subject to go really popular. In this study he talk about both the enterpriser and entrepreneurship. We refer to the definition that nowadays seems to be the most influential ‘ the survey of beginnings of chances, the procedure of find, rating and development of chances ; and the set of persons who discover, evaluate ad exploit them ( Shane and Venkataraman, 2000, p. 128 )

2.2 The entrepreneurial procedure

Other than what some of import other economic experts say William D. Bygrave provinces that making an organisation, in whatever signifier this may be, is an indispensable portion of being an enterpriser. The whole procedure between the being of a entrepreneurial chances and the creative activity of an organisation we refer to as the entrepreneurial procedure. This includes the being, the find and the development of an entrepreneurial chance ( Shane & A ; Venkataraman, 2000 ) . The development in this definition links to the creative activity of an organisation. Surveies on the entrepreneurial procedure so far are unluckily about ever written in retrospect. This means that these surveies are conducted when the results are already known ( Sanz-Velasco, Entrepreneurial Learning, 2006 ) . A defect of those surveies when mentioning to the whole field of the entrepreneurial procedure is that seldom there are long-run surveies on companies or ventures that did non do it and failed in certain facets. Even though this last named group of failed ventures represents likely represents likely a significant portion of all the entrepreneurial actions. The deficiency of this research gives an uncomplete position on the entrepreneurial procedure. In this study we will mention to the entrepreneurial procedure as Shane and Venkatarman ( 2000 ) describes ; the discovering, rating and development of chances.

What are entrepreneurial chances?

Entrepreneurial chances exist chiefly because different agents have different beliefs about the

comparative value of resources when they are converted from inputs into end products

( Schumpeter, 1934 ; Kirzner, 1979 ; Shane & A ; Venkataraman, 2000 )

Harmonizing to Casson ( 1982 ) an entrepreneurial chance is a state of affairs in which a value can be added to yet bing resources by presenting new goods, services, natural stuffs and forming methods. It merely takes a originative position on yet bing resources and the ability to look at them from a different angle. This ability is an of import measure towards distinguishment of a possible enterpriser from any other general individual.

Often it is thought that an chance should be alone, though history and experience shows that frequently opportunities occur to different people at the same clip. This has as a consequence that non seldom you hear possible enterprisers losing the train. They have been to occupy maintaining their thought a secret by being excessively leery to portion the thought with others, which makes them non being able to develop the thought towards a possible development. In order for a possible enterpriser to make the province of development, it is in his or her involvement to speak about the thought and thereby measuring, testing and proving it ( Bygrave, 2003 )

Acknowledging chances

In a research on the find of chances, Shane ( 2000 ) through empirical observation proved that enterprisers tend to falter on and recognize bing entrepreneurial chances, alternatively of actively hunt for them. This implies that chances are exist, instead than that they are created by the enterprisers themselves. Harmonizing to the hunt of Berglund ( 2005 ) , gestating chances is non seen as either bing or non-existing per Se, but as a package of more or less clear chance perceptual experiences and chance projections. Acting provides of import cognitive and practical drivers that more or less temporarily steer entrepreneurial actions. William and H. Dixon ( 2002 ) investigated the U.S. Locomotive Industry for the chance acknowledgment and indicated that differentiation between riotous and nonthreatening engineerings is made more easy after the fact. Opportunity acknowledgment remains mussy and fog-shrouded.

The causing and implementation theory of Sarasvathy et Al. ( 2003, p.156 ) states that chances could besides be created. This is done by non looking at the resources you possess ( implementation ) , but by seeking for the resources needed to prosecute a certain originative thought ( causing ) ( Sarasvathy, Saras D. , Causation and implementation, 2001, p. 245 ) . This leads us to believe about the bing of chances ; where do they come from and how can we specify them?

Cognitive behavior Andrew ( 2002 ) indicates that larning manner is an of import variable in the chance acknowledgment procedure after completing the hunt among information acquisition ( larning manner ) , information processing ( cognitive manner ) and cognition ( general and specific human capital ) . It plays a important function in finding whether or non persons recognize proficient chances. In add-on, they found that proactive hunt, reactive hunt and causeless find have differences with regard to the available organisational, rational, fiscal and technological resources. Firms using proactive hunt processes tend to finish necessary gestation mileposts more quickly and make gross revenues and profitableness more quickly ( Corbett, 2002 ) .

Education and preparation could besides act upon enterprisers ability to detect and measure chances. Thingss we have learned in the yesteryear will act upon our cognitive behaviors so that will come a large portion of how we think and perceive things ( Ronstad, 1998 )


Social Network

Following to those personal properties, there are besides external ( environmental ) factors of influence on the find and possible development of an chance. Sing person in your closeness going a successful enterpriser takes off some uncertainness and makes it easier to take the hazard. Another portion that can play a important function in the entrepreneurial procedure are the household responsibilities one has compared to the hazard one takes. As some industrial country ‘s might hold proven by now, the entrepreneurship febrility seems contagious ( Bygrave & A ; William, 2003 ) .

Besides your web of personal friends and associates can be a great beginning of happening new concern ventures ( Singh, Hills, Hybels & A ; Lumpkin, 1999 ) . By interchanging information within your personal web you can come up with new thoughts and solutions or measure thoughts you already have ( ibid. ) .

Measuring chances

Harmonizing to Ardichivall, Cardozo and Ray ( 2003 ) , after detecting an chance and development of it entrepreneurs must make an rating in order to cognize of the chance is deserving working. That is normally done by an feasibleness analysis. The feasibleness analysis will give the enterpriser replies if the combing if resources could give the right economic gross.

The rating portion depends a batch on the enterprisers itself. The entrepreneurs perceptual experience of return aims, experience, hazard penchants, fiscal resources, single duty and personal aims will consequence the procedure of evaluating of the chance. Ronstadt ( 1988 ) calls this “ cognition corridor ” . Harmonizing to Ronstadt ( 1988 ) , the development of chances will be decided by the measuring enterpriser. While some will happen an chance worth working, some with the same thought could happen it non deserving prosecuting. A

Once you have discovered an chance and are willing to take the hazard and research it, how do you cognize whether this chance is a moneymaking one? Cipher can guarantee you from the beginning that the development will go a success. There are several factors that might assist you to give an accurate position on this inquiry. To hold a successful concern, there are three cardinal factors that are of influence: the chance itself, the enterpriser and the resources ( Bygrave & A ; William, 2003 ) which he calls the three drive forces. :

This figure shows a theoretical account in which the three driving force are integrated and are of import to do a steady and proper rating. Harmonizing to WHOM? ? ? ? ? ? ? ? ? ? ? ? ? ) there are four primary countries of rating:

1. The squad behind the thought

The employees, advisors and experient enterpriser. A great thought that is holding high market possible requires a squad behind it take my an enterpriser. It can efficaciously turn and back up the thought. An enterpriser ‘s endowment and accomplishment may take to the find and rating of the thought but enterpriser may non hold much competency to turn that thought into concern without a squad.

2. The available resources

The resources like capital and debt resources that are accessible and available to the enterpriser and the direction squad. Extra aid from the experts from the people is besides a resource. The engineering that is available is required to back up the thought.

3. The information and cognition

It is about how much does an enterpriser posses the information, the cognition of new venture construct, market research and the industry.

4. The ability to bring forth gross of the thought

It is to analyse that how great is the possible to sell the service or the merchandise to bring forth the gross. In most of the instances, one time the concern opens people do non love the thought and they would non be in line to purchase it. It is the enterpriser who analyze to minimise the cost at the start and fluctuate it when the gross gets increasing. [ 3 ]


Haynie, Shepherd and McMullen ( 2009 ) identified what sorts of chances will pull enterprisers, and proposed that chance rating determination policies are constructed as future-oriented, cognitive representations of ‘what will be ‘ , presuming one were to work the chance. These cognitive representations incorporate both ( 1 ) an rating of the bing resource gifts ( already under the control of the venture ) , which may be employed to work the chance under rating, and at the same clip ( 2 ) an appraisal of the hereafter, wealth bring forthing resources that must be marshaled ( and later under the control of the venture ) in order to work the chance under rating. They suggested that enterprisers are attracted to chances that are complementary to their bing cognition resources ; nevertheless, they besides identified a set of opportunity-specific and firm-specific conditions that encourage enterprisers to prosecute the acquisition and control of resources that are inconsistent with the bing, knowledge-based resources of the venture.

The development of chances

The rise and autumn of entrepreneurial chances

There are two stages in an established organisation about detecting, measuring and taking entrepreneurial chances: The meeting stage and the showing stage. In meeting stage the chances are discovered and in testing stage the chances are chosen and evaluated for development. Further, in testing stage the organisation must pay attending to chances current worth. It is about societal, economical and cultural constructions. Both stage are of import every bit but testing of the entrepreneurial chances is what is refering with rise and autumn of chances.

The convergence stage

The convergence stage is about to the period during which entrepreneurial chances are discovered in an organisation that is already established. It is before the stage where chances are evaluated and chosen for development. Participants like employees, advisers, providers and clients flow into the organisation in this stage. By communicating between participants assorted inventions about chances emerge and solutions come for the certain jobs. In project meetings they communicate with each other, electronic mails, treatment forums, every bit good as other types of duologue. For successful induction of entrepreneurial chances, the quality of communicating is important.

The showing stage

Once an chance has been identified in meeting stage and relevant information has been obtained. The squad of corporate enterprisers do frontward it to the direction for development farther more. This stage refers to the period during the entrepreneurial chances are evaluated and for development selected by directors. In testing stage, two sets of related and situational factors, one is attending constructions and other is policy Windowss. These factors channel the showing procedure by choosing chances for development and testing the others.

The Resource-based position

In his paper ‘A resource-based position of the house ‘ Wernerfelt comes up with the theory to look at the houses place from a resources side, instead than from a merchandise side and to find how to utilize those resources in such a manner that they create new strategic options ( Wernerfelt, 1984 )

First mover advantages

When a individual has the advantage of being the first one to be presenting a new merchandise, utilizing new procedures or come ining a new market ( Lieberman and Montgomery, 1990 ) , s/he can profit from this place because it can impact the cost and/or grosss of the participants in the field that enter afterwards, a phenomenen that is besides reffered to as resource place barriers ( Wernerfelt, 1984, p 173 ) .

Research has shown that there is a correlativity between the entryway to the market of different houses and their market portion ( Karin, R. A. 1992, Journal of selling ) . There are several ways in which a first mover could profit organize this position like the acquisition curve and the monopolizer position that you have every bit long as no other rivals enter your market ( von Hippel, 1984 ) technological leading, pre-emption of scarce assets, exchanging costs and purchaser pick under uncertainness. On the other manus it brings disadvantages every bit good, which frequently take signifier by non holding the advantages that ulterior entrants do hold. For illustration free-riding, technological discontinuities, market uncertainness and officeholder to accommodate to environmental alteration ( Lieberman M. B. , Montgomery, D. B. , foremost mover advantages ; Research paper, October 1987 ) . From a resource based point of position, this first mover advantage will merely be an advantage every bit long as the merchandise that is introduced is rare, valuable and hard to copy ( Barney, 1991 )

The resource-based position and competitory advantage

As Peteraf ( 1993 ) analyzes in her paper ‘Entrepreneurial resources, organisational picks and competitory result, Organization Science ‘ , there are four of import conditions of resource-based theory that should be taken into history: :

Resource heterogeneousness within an industry

Heterogeneity is a basic status of entrepreneurship ( Kirzner, 1997 ) . A basic premise of resource-based work is that the resource packages and capablenesss underlying production are heterogenous across houses ( Barney, 1991 Different resources could be superior over others. A Heterogeneity of resources implies that a house is stronger in the field of competition. Firms with Superior resources are more likely to be profitable ( Peteraf, 2003, p. 180 ) Harmonizing to Kirzner ( 1997 ) , “ entrepreneurial chances exist when different agents have insight into the value of resources that other agents do non, and the agents with penetrations act upon these un-exploited chances ” ( Quote from Alvarez, 2003, page 251 ) . Harmonizing to Alvarez ( 2003 ) , houses can hold heterogenous assets but those will merely bring forth advantage every bit long as their non imitated.

Ex station bounds to competition

In order for the resources to be of long term value by bring forthing rents on the long tally, it is of import that the resources are non merely lasting and sustainable. The competition should besides in some manner be limited in obtaining those resources and rents. Forces that might be used could be for illustration belongings rights to scarce merchandises, information a-symmetries ( Rumelt, 1987 ) or the impression of causal ambiguity ( Lippman and Rumelt, 1982 ) , which makes it difficult or even impossible for possible impersonators to cognize how and/or what to copy precisely.

Imperfect resource mobility

There are absolutely immobile and amiss nomadic resources. The difference between them is that the first mentioned one refers to the untradeable resources. They will non be of any usage when they are taken out of the house ( Williamson, 1997 ) . The 2nd one refers to resources that are tradable and might even be of more value in another house.

Co-specialized resources are resources that do merely map when they are combined with one or more other resources ( Theese, 1986 ) . They are useless when they would be put in pattern on their ain.

Ex ante bounds to competition.

To derive superior amiss nomadic resources it is necessary to remain in front of your competition by geting them before they think of it or make it. ( Peteraf, 2003, p. 185 )

The theoretical account gives a clasp on the sort of resources that, on their ain or combined can give a company a competitory advantage. The acknowledgment of the value of the obsessed resources is an of import measure for directors in order to be able to nourrish and develop them and thereby increase the competitory advantage in that manner ( Peteraf, M. A. , 2003, p. 189 )

Organizational picks and their competitory result

Even though an single possesses a valuable resource, for illustration in the signifier of silent cognition, the manner the organisation chooses to do usage of it influences whether it helps the company to acquire to or remain in the superior competitory place ( Nelson & A ; Winter, 1982 ) Puting the same resources into pattern might bring forth an result that differs per individual, since every person has different psychological features, biographical experiences, cognitive behavior and cognition ( Woodman, 1993 ) .

What are resources?

as those ( touchable and intangible ) assets which are tied semi-permanently to the house ( see Caves,

1980 ) . Dierickx and Cool ‘s ( 1989 ) identified which sort of resources would be cardinal to the RBV and they came up with ‘non-tradeable assets which develop and accumulate within the house. ‘ These features of the resources strengthen the place of a house because it leaves possible competition behind. The acknowledgment is influenced by two of import facets that or of large influence on a individuals ‘ traits: Individual attributes and the Environment ( Shane, 2003 ) .

Resources of influence in the entrepreneurial procedure

So, what are the necessary resources to come to the stage of development and what makes person persistent on traveling through all the phases of the entrepreneurial procedure where others will non?

Shane ( 2000 ) means that people ‘s ability to detect and acknowledge of entrepreneurial chances depends on a few traits. Those traits are harmonizing to Shane ( 2000 ) : anterior cognition, experience, societal webs and cognitive behaviour. Frank Cave and Alan Minty ( 2002 ) indicate that entrepreneurs seem more inclined to accept being risk tolerant, comfy managing uncertainness and pro-active in decision-making and owner/managers avoid volatility in returns.

Entrepreneurial resources and results

The map of enterprisers is to revolutionise and reform the form of production by working an discovered or invented thought. The thought can be the for reforming the old merchandise in a new manner or presenting an wholly new merchandise. It can be possible by opening up new resources of supply and revolutionising the industry. The success of enterpriser depends much on the entrepreneurial resources. These resources are defined as the behavioral leanings about persons to be intuitive, originative and watchful. Two utmost instances that can be compared. One in which entrepreneurial resources are available chiefly by one or a few persons and these persons are enterprisers. Other is entrepreneurial resources are dispersed throughout the squad entrepreneurial signifier in the organisation

Organizational Features

Different organisational features are defined that will be associated with these two signifiers. The entrepreneurial person is likely to hold confirmation and determination induction and bearing of hazard performed by the owner of the entrepreneurial resources. By contrast, confirmation A and determination induction will be separated through the squad entrepreneurial signifier. These maps are besides performed by the many owners of entrepreneurial resources.

Prior cognition

Entrepreneurs will ever confront troubles sing with cognition and information. Either they have excessively much information which makes it difficult to treat, or they will hold to small cognition, which makes it hard for them to do good informed determination. Knowledge can assist entrepreneurs to see things in a different manner ( Alvarez and Barney, 2000 ) Harmonizing to Schumpter ( 1934 ) , A Entrepreneurship is “ the creative activity and commercialisation of new resources or combination of bing resources in fresh ways that result in formation of a new house ” ( Quote from Alvarez, 2003, p. 247 ) .

Harmonizing to Ronstedt ( 1998 ) prior cognition is a really of import portion of discovering, rating and working entreprenuerial chances. Detecting entrepreneurial chances is inherently connected to the ownership of cognition one has that others lack ( Kirzner, 1973 ) . The ownership of this cognition is the first measure towards the ability to recognize chances and to evalutae its value. Harmonizing to Shane ( 2000 ) and Ronstadst ( 1998 ) there are five dimensions of anterior cognition. Those dimensions are:

– Work experience

– Education and preparation

– Prior cognition of markets

– Prior cognition of ways to function clients

– Prior cognition of clients jobs

Knowledge resources act a of import function of start-ups for making a new concern. They can be possessed by enterprisers or others who are willing to portion knowledge.West and Noel ( 2009 ) indicated cognition as a type of resource that confers competitory advantage and the potency for sustainability. These two factors are critical for start-ups. Three types of procedural cognition are considered to be of import at start-up: ( 1 ) about the industry ; ( 2 ) about the type of concern attack the venture is prosecuting ; and ( 3 ) about making, edifice, and reaping new ventures.Knowledge utile to the new venture is developed either through relevant personal experiences or by accessing relevant cognition possessed by others ( Page West III and Noel, 2009 )

Focus on anterior cognition of the client

Knowledge of client makes entrepreneurs easier to work the chances. Harmonizing to this cognition, the corporation owned by enterpriser may make a new section of the market, perchance, which is the “ bluish ocean ” . Choi and Shepherd ( 2004 ) examined the determinations of enterprisers to get down working concern chances from a resource-based position. They suggested that enterprisers are more likely to work chances when they perceive more cognition of client demand for the new merchandise, more to the full developed necessary engineerings, greater managerical capableness, and great stakeholder support ( Young and Shepherd, 2004 )

Information about market can be really utile when it comes to detect chances. The anterior cognition of markets can besides give you insight weather the chance is deserving prosecuting. Prior cognition on how to function clients can be really valuable when it comes to the realisation of entrepreneurial chances. Entrepreneurs anterior cognition of ways to function clients can besides assist them in discover new ways of making clients. Knowledge about client jobs can assist entrepreneurs discover chances ( Ronstad, 1998 )

Customer mentions can be esteemed external and internal selling assets. Customer mentions can be leveraged externally as marketing assets to ( 1 ) addition status-transfer effects from reputable clients, ( 2 ) signal go throughing a choice procedure, ( 3 ) concretize and demonstrate complex solutions, and ( 4 ) provide indirect grounds of experience, old public presentation, technological functionality, and delivered client value. Customer mentions can besides be leveraged internally to ( 1 ) facilitate organisational acquisition, ( 2 ) progress offering development, ( 3 ) motivate forces, and ( 4 ) develop apprehension of client demands, internal competences, and delivered client value. Finally, they concluded that client mentions are critical selling assets for industrial providers, non merely because they serve as agencies of increasing the provider ‘s market credibleness through several maps, but besides because they incorporate several internal maps that contribute to organisational acquisition and efficiency ( Jalkala and Salminen, 2010 )

Customer cognition is to understand the clients, their demands, disfavors and purposes. This is indispensable if a concern is to aline its merchandises, services and processes to construct existent client relationships. Many companies have cognition of their clients, but sometimes this is in a disconnected signifier and hard to analyse or portion or it is uncomplete.

A concern failures may go on when person is making a spread between what you think about clients demands compared to what clients truly need and will travel to your rivals to carry through that.

Customer cognition can be approached by two ways. First, client cognition is the aggregation of point of view and information that an organisation keeps about its clients. The function of client cognition direction is to roll up, gaining control and form the information. This information should be allowed to portion and discourse throughout the full organisation. An alternate position of client cognition is, aggregation of information and with the aid of this you can construct strong client relationship. Your current cognition about your clients may non be sufficient, but you may necessitate to set in systems and processes to garner more informations and information about who are your clients and how they think and what they do. It can assist the direction as a immense resource of cognition to maintain one in-touch with tendency and altering market.

Focus on calling experience

Rae ( 1999 ) describes that enterprisers experience becomes a filter which influences the enterpriser in analysing and treating chances and which helps them to acknowledge and make up one’s mind if they should move on the chance or non. In that manner experience could be a good thing because of our experience can assist entrepreneur to see chances and assist them with cognition on how to work them. Bygrave and William ( 2003 ) suggests that experience and cognition is two of the chief traits a individual should hold in order to be able to go an enterpriser. It is besides of import to indicate out that experience could take to a more pessimistic position and a more conservative attitude as good and limit people int their entrepreneurial chases ( Bygrave & A ; William, 2003 ) .

Anterior work experience will act upon the chances you discover ( Shane, 2000 ) . Work experience can besides assist enterprisers in the evaluating procedure. The entrepreneurs past experience could be helpful when it comes to measure approaching state of affairs and chances in order to make up one’s mind if they entrepreneur or the company should prosecute the chance ( Ronstad, 1998 ) .

Entrepreneurial events that are antecedent to entrepreneurial cognition are non ever readily evident in the instance of a new venture due to the presence of ambiguity and uninterrupted alterations that are normally apparent in an entrepreneurial context ( Ravasi et al. , 2004 ; Sarasvathy, 2001 ) . Consequently, Diamanto Politis ( 2005 ) suggests three types of calling experiences which can be related to the development of entrepreneurial cognition: start-up experience, direction experience and industry- specific experience. Those three types of experiences contain the most three of import parts, and it includes creative activity, maintain and specific cognition. As Diamanto Politis ( 2005 ) says: “ The more career experience, the more effectual is the enterpriser in acknowledging and moving on entrepreneurial chances ; The more calling experience, the more effectual is the enterpriser in get bying with the liabilities of newness. ”

Start-up experience

Diamanto Politis ( 2005 ) argues that anterior start-up experience offers tacit cognition which will hold a great consequence on decision-making about entrepreneurial chances. It means that person with more start-up experience could see an chance as more desirable than how others perceive it. It is more likely to work chance when 1 has more experience. Harmonizing Gimeno, Folta, Cooper, and Woo ( 1997 ) , “ anterior start-up experience enhances the economic public presentation of new ventures that new ventures whose laminitiss had more old start-up experiences earn more income from their concerns. ”

Management experience

And another type of experience is the direction experience. Bruderl and Preisendorfer ( 1998 ) show that “ enterprisers ‘ old ages of work experience increased their ventures ‘ three-year endurance rates, and thereby reduced the likeliness of new venture failure. “ Many theories has proved that direction experience can heighten enterprisers ‘ purpose to get down a new venture, and besides facilitate the chance acknowledgment during the procedure. So general direction experience can assist many facets in the procedure of acknowledging and working entrepreneurial chances.

Industry specific experience

Due to entrepreneurs should run into uncertainness about the value of the goods and services which they plan to bring forth, Shane ( 2003 ) assumes that “ industry-specific experience can hold a strong influence on their development of entrepreneurial cognition. ” A This intimations that persons with anterior experience as an enterpriser in a specific industry will hold a better understanding what the market demands and how he can garner the information. When person decides to get down his concern in one industry that he did that country earlier, he will hold an advantage of how to garner the information of the development of chances. However, merely start-up experience could n’t go a satisfactory step of enterprisers ‘ calling experiences. It could be considered that enterprisers ‘ calling experiences have a batch of entrepreneurial events, such as merchandises, services, clients, finance, and start-up experience could be the first portion of all.


In this chapter we will show what methods we used to happen empirical and theoretical information.

3.1 Deductive attack

Harmonizing to Backman ( 2009 ) there are two attacks to hold on the world: Deductive and inductive attack. Deductive attack means that the research workers read about their topic before traveling out in to the universe. In that manner the can organize outlooks on how the world is ( Jacobsen, 2007 ) . A Inductive attack means that the writers goes out and roll up their informations with an “ unfastened ” head, non holding read anything about the topic and without holding any outlooks ( Jacobsen, 2007 ) . In this research we have used an deductive attack for this paper. In order to acquire a appreciation of the topic, we felt the demand to read what other writers and research workers had said about the topic before. That gave us a clear image of what we wanted to look at in this survey.

3.2 Qualitativ research method

Their are to basic signifiers of roll uping informations ; quantitative and qualitative research method. Quantitative is good when the research worker want to acquire Numberss on a phenomena in order to be able to pull general decisions. Qualitative research method focus more on words an readings of the person ( Jacobsen, 2007 ) . The empirical information in this paper was handed to us by out instructor, Navid Ghannad. The empirical informations consist of a instance survey of company Polaris and it ‘s proprietor Staffan Preutz. The information was collected by Navid Ghannad whith an qualitative research method utilizing a series in interviews with Staffan Preutz, former employees and people associated with the Polaris company.

We have non performed any empirical informations aggregation of our in in this paper. As we are merely utilizing secondary informations, we as research workers can non act upon the pick of the participants int the survey. Secondary information is harmonizing to Jacobsen ( 2007 ) information that is collected by other research worker for other intents. Because we cant take our empirical information ourself this will restrict our research and will likely act upon our decisions.

3.3 Analysis method

To analyze our empirical information we have written down what Staffan Preutz and Polaris types of resources they used when it comes to knowledge and see and how those affected the entrepreneurial procedure. We so compared our empirical findings with our literature reappraisal on the topic to see if there similar or theories that could explicate Polaris and Staffan Preutz behavior. A


In this chapter we will analyze our empirical findings with our theoretical model.

Knowledge and experience as a resource

taffan Preutz tells us that his involvement for eye-wear and spectacless started at an early age. Staffan had a large involvement of pulling studies and planing at an early age. This involvement has come to specify Staffan Preutz subsequently on in his life when he acquired cognition and information about the optical concern. In immature old ages he went going across Europe to different interior decorators where he learned his profession and developed particular competences in the optical country. He subsequently besides got the opportunity to go to Germany, France, Italy and England as a portion of the “ merchandise council ” of Synsam. Staffan learned and gained cognition during this clip on how the industry worked both vertically and horizontally. He gained a batch of cognition on how the industry was working from the maker ‘s position every bit good as the lens maker ‘s position. Staffan ‘s cognition about development and designing of A new merchandises is the most critical resource for Polaris harmonizing to Rolf Back.

Staffan besides gain valuable cognition about client penchants during his going. By going to different states he learner the different gustatory sensation and penchants on different markets, like size, colourss and quality.

/Special cognition

In 1971 Staffan opened his first optician shop in Lulea it was to bring forth adequate money to prosecute his dream: to go an eye-wear interior decorator. At the clip Staffan did n’t hold the demand or resources to work his dream so he used the resources he had to do most net income of them. Harmonizing to Stevenson and Gumpter ( 1985 ) deficiency of resources is frequently a job for enterprisers. Often entrepreneurs faces troubles with resources and they have to compromise and seek to make the best of the resources they got ( Stevenson & A ; Gumpter, 1985 ) .

In 1968, Staffan managed to carry some five lens makers to get down a optical concatenation, the Synsam group. Staffan though that by uniting their resources they could be more efficient in their purchasing selling procedure. A

/ To utilize cognition of resources to see chances. entrepreneurial watchfulness.

Summer 1975, Staffan showed his new design. He took his cognition about eye-wear design combined with his cognition on new stuffs to make a new type of frames in plastic material.The frames where particular because the optical glass was fixed into the frame. At first the undertaking was to dearly-won and put on ice, but Staffan was still working in the undertaking. Staffan became innovator at utilizing the new fictile stuff and particularly ways to do into different colourss. Because of his expertness in this hard field of fabricating those new types of frames. By deriving and larning that procedure he gained cognition that gave him an competitory advantage and all shops in the Synsam concatenation started to direct orders to his store in Lulea .

The fabrication of frameless glass was non a new innovation. But Staffan found new ways to utilize existing resources that made the merchandises better.

/ recombing of bing resources.

In 1978 Lars Karbin joins Staffan Preutz and organize the company Polaris. The cognition that Staffan Preutz had about of clients, production and designing of spectacless where now combined with Lars Karbin cognition of concern disposal. So Lars became the caput of disposal and covering with company ‘s ‘ paperwork and Staffan was in charge of selling, production and designing of new merchandises.

/ Knowledge

The original thought was n’t the 1 that gave them success. By utilizing new engineerings and new ways to utilize resources Polaris become successful.

/ utilizing bing resources in new ways.

Fiscal resources in signifier of loans from NUTEK, local development bureaus and commercial Bankss. New board was formed. Expanded their cognition resource base with Rolf Back, Erik Rosen and Arne Andersson. ( Page 114 ) A A A A fiscal

Traveling International

There were to three chief efforts to acquire into the US market. The first attempted was to come in the US by selling spectacless to the concatenation “ bluish denims ” . The twelvemonth was 1979, “ Blue Jeans ” had expensive locations in metropoliss like Miami, New York etc. This effort got int batch of problem A because the eye-wear was considered to be a medical merchandise in US. Simultaneously they hired a old friends married woman to work as an agent for Polaris in US. Harmonizing to Staffan it was a error to engage because she was more interested in giving off free merchandises that really selling them. In these to instances the gained valuable experience and cognition about the market and hiring of the right people.

Their 3rd effort to come in the US market was with an ambitious lady, Meg. Meg became a immense resource for Polars with our aspiration and motive together with her networking accomplishments. Her huband was a pilot and they used his private jet to go across the state to advance the spectacless. With Megs aid vitamin D net income in US.


After the error with the new CEO in US, they gain experience. They problem with the Kent Carlsson made Staffan and Lars relationship bend bad. It ended up with Lars go forthing the company under turbulent circumstanses and with the loss of Lars, The Polaris lost a batch of competency and cognition. The doomed a large portion of their concern disposal competencies and selling cognition.

The company could n’t maintain up with their rapid enlargement and got jobs with quality and bringing.

/not adequate resources to get by with demand. Led to job.

Problems in Germany, gained experience

Lengton enters. Tonss of cognition and experience from being an merchandise developer in an optical production installation in England. Started working together. Golden three. Lars worked finacis and banking, Staffan design and market and lengton with production. Competences in metal and plastic, lead to that they could fabricate the frames themselves alternatively of outsorcing it to france.

Late 90 ‘s lengton left, ne’er replaced. A

From the instance: What has changed presents?

Presents: he would non take the same hazards:

Personal satisfaction.

Entering markets without any computations, schemes or resources

He was deceived excessively many times by ‘nice’people. Now introduced the pay-in-advance

Losingss have decreased significantly

Maintainence of fabrication installations excessively high

Now merely manufactured in UK, sent to Sweden


No more patents: slightest alteration will do case unhelpful

Weakeness: viing against mike/Gucci/etc.

Society and the manner they look at him: excessively many employees makes you a bigger imbecile and bigger danger

Polaris extremely dependant on Staffan

Staffans’design is Core Competence

Network turns older, go through off. Its hard to web with the new replacements.


In this chapter we will show our decision and suggestions for the hereafter.


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