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Abstract
In taking an economic and behavioral approach, Kaish and Gilad (1991) recently tested Kirzner's (1973) theory of alertness which asserts that entrepreneurs are more alert to new opportunities and use in formation differently. Because of the lack of generalizable samples and the exploratory nature of the Kaish and Gilad study, this research replicated and further developed some of the
scales originally developed by them. The results indicate that little empirical support exists for this theoretical framework, but the measures of entrepreneurial alertness need further development. Empirical and theoretical implications are discussed along with the roles of exploratory and replication research in a vibrant discipline like entrepreneurship.
Research on Entrepreneurial Alertness*
Information undoubtedly plays a critical role in the development of new ventures (Hambrick and Crozier 1985; Smith et al. 1988). However, while some recent research suggests that entrepreneurs may process information differently than managers in large organizations (Manimala 1992; Busenitz and Barney 1996), a substantial amount of ambiguity exists in our understanding of how entrepreneurs search for information. In summarizing the history of economic research on entrepreneurs, Hebert and Link (1988) concluded that most neoclassical economists struggle to explain entrepreneurial thinking styles and behavior because information that leads to starting new businesses is rarely based on full and free market data.
In a departure from the traditional neoclassical framework and in an important breakthrough, Kirzner (1973, 1979, 1982) developed the "entrepreneurial alertness" concept which assumes that entrepreneurship involves the discovery of opportunities and the resources to exploit them as the economy moves towards equilibrium. From this perspective, the entrepreneur is an opportunityidentifier who has the ability to spot underpriced products or factors of production in particular markets in anticipation of disequilibrium profit opportunities. Thus, Kirzner posited information and information-seeking behavior as the central tenants of entrepreneurial alertness.
In what is believed to be the first empirical test of entrepreneurial alertness, Kaish and Gilad (1991) found some empirical support for this theory. Their results suggest that entrepreneurs heighten their alertness to possible business opportunities by using different types of information (information cues) to project the potential of new business opportunities. Their results further indicate that whereas entrepreneurs make a habit of scanning their environment for information that may lead to new business...