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Articles - Dew et al (2011)

7 important questions on Articles - Dew et al (2011)

Rational search and selection (formal decision theory):

The predominant answer today to the problem of how an entrepreneur or manager might act on the problem of new market creation consists of conceptualizing the problem as some form of search and selection among a universe of exogenously given market opportunities. The key idea is that search is optimizing, based on the goals of the agent. At least in principle, search is unconstrained and encompasses a vast number of possibilities.

Heuristic search and selection (behavioral theories)

The result is a theory of heuristic search, based on the assumption of cognitive limitations. The simplest form of heuristic search is the idea that agents search locally, i.e. among possibilities that are close to their starting point. Another way to say this is that they search based on their local knowledge

Ways to create new markets go beyond combinatorial methods:

they involve transformations, particularly stakeholder-dependent transformations.

There are three principal factors that differentiate the transformation concept from search and selection.

The first is that search and selection normally assumes, either explicitly or implicitly, a conscious intent to capture a new or latent market

Second, given bounded cognition, search is generally theorized to be limited to a finite set of very local possibilities.
Third, search and selection is largely static and theoretically prior to most market creation activities and the selection of partners or stakeholders.

The advantage of concurrent verbal “think aloud” protocol over other methods of investigation is that it allows researchers

to get more direct insights into the cognitive processing of subjects. This is because of the nature of short term memory in the human brain, which holds a very limited amount of information

Localization, regionalization, globalization operations

Transforming the scope of the market by narrowing or enlarging it is another mechanism of transformation that we found prevalent among experts. Anecdotally this happens every time an entrepreneur transforms an iconic American product into a global one.

Although it is possible to model entrepreneurial processes as either, we have presented evidence that show that expert entrepreneurs that use transformation processes produce a larger number of new market ideas than novices schooled in search and selection

Although it is possible to model entrepreneurial processes as either, we have presented evidence that show that expert entrepreneurs that use transformation processes produce a larger number of new market ideas than novices schooled in search and selection

The question on the page originate from the summary of the following study material:

The Economics of Innovation An Introduction | 9781781007747 | G M P Swann

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Articles - Dew et al (2011)

7 important questions on Articles - Dew et al (2011)

Rational search and selection (formal decision theory):

Heuristic search and selection (behavioral theories)

Ways to create new markets go beyond combinatorial methods:

There are three principal factors that differentiate the transformation concept from search and selection.

The advantage of concurrent verbal “think aloud” protocol over other methods of investigation is that it allows researchers

Localization, regionalization, globalization operations

Although it is possible to model entrepreneurial processes as either, we have presented evidence that show that expert entrepreneurs that use transformation processes produce a larger number of new market ideas than novices schooled in search and selection

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