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Hear it straight from the horse’s mouth: recognizing policy-induced opportunities

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  • Weiqi Dai
  • Felix Arndt
  • Mingqing Liao

Abstract

What types of entrepreneurs are more likely to ‘stay tuned’ to government policies and does it pay? Integrating work on opportunity recognition and the institution-based view, this study examines the link between the pursuit of policy-induced opportunities and firm performance. Based on data analysis of 3284 Chinese privately owned firms in 31 regions/provinces in China, we find that entrepreneurs who have past working experience within the government are more likely to stay alert to government policies involving entrepreneurial opportunities, which leads to entrepreneurial activities and ultimately firm performance. This study enriches our understanding of opportunity recognition and development by expanding it to political markets. We assess the role of institutional variation as an important factor in emerging economies. We unravel the pivotal role of entrepreneurial alertness to government policies on enhancing firm performance by strengthening entrepreneurial activities.

Suggested Citation

  • Weiqi Dai & Felix Arndt & Mingqing Liao, 2020. "Hear it straight from the horse’s mouth: recognizing policy-induced opportunities," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 32(5-6), pages 408-428, May.
  • Handle: RePEc:taf:entreg:v:32:y:2020:i:5-6:p:408-428
    DOI: 10.1080/08985626.2019.1640452
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    Cited by:

    1. Wang, Xincheng & Li, Yuan & Tian, Longwei & Hou, Ye, 2023. "Government digital initiatives and firm digital innovation: Evidence from China," Technovation, Elsevier, vol. 119(C).
    2. Emily C. Blalock & Xiaojun Lyu, 2021. "Legitimate but “not for me”: The role of validation in migrant entrepreneur understanding of COVID‐19 business support policies in Shanghai," Growth and Change, Wiley Blackwell, vol. 52(3), pages 1482-1508, September.
    3. García-Lillo, Francisco & Seva-Larrosa, Pedro & Sánchez-García, Eduardo, 2023. "What is going on in entrepreneurship research? A bibliometric and SNA analysis," Journal of Business Research, Elsevier, vol. 158(C).
    4. Araujo, Clécio Falcão & Karami, Masoud & Tang, Jintong & Roldan, Lucas Bonacina & dos Santos, Julia Aita, 2023. "Entrepreneurial alertness: A meta-analysis and empirical review," Journal of Business Venturing Insights, Elsevier, vol. 19(C).

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