The state of opportunities: clarifying the transitions between opportunity types

Purpose – The purpose of this paper is to describe how discovery and creation opportunities transition from one to the other and thereby clarify the relationship between opportunity types. This theoretical work will offer insight for studying opportunities and clarify the different practical implications of different opportunity types. Design/methodology/approach – To further the understanding of opportunity types, the paper employs Dubin’s (1978) theory building methodology focussing specifically on the concepts of system states. Approaching opportunity types as system states clarifies the relationship between discovery and creation opportunities. Findings – This research argues that opportunities transition from creation opportunities to discovery opportunities. Furthermore, understanding the opportunity state can clarify the practical implications for entrepreneurs. In particular, entrepreneurs in discovery states employ different processes regarding human resources, strategy, financing, planning, leadership, and potential competitive advantage than entrepreneurs pursuing creation states. Originality/value – This paper offers value to researchers by clarifying the differences between opportunity types. To date, there has been little to no investigation into how opportunity types change from one type to another. This research offers to clarify the debate about the existence of different opportunity types and move the discussion forward theoretically. Additionally, this manuscript offers practical insights for entrepreneurs pursuing different types of opportunities.