An Exploratory Study of Entrepreneurial Opportunity Recognition of Small and Medium Sized Enterprises.doc

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An Exploratory Study of Entrepreneurial Opportunity Recognition of
Small and Medium Sized Enterprises
Ngo Lien Thao
Tran Tien Khoa
Nguyen Van Phuong
International University, Vietnam National University HCMC, Vietnam
Abstract
Small medium sized enterprises (SMEs) have been playing a crucial role in enhancing the economic
development and growth in most countries. The ways in which SMEs recognize their entrepreneurial
opportunities need to be investigated. This paper aims to explore different patterns in the processes of
entrepreneurial opportunity recognition from SMEs’ founders. The study adopts qualitative method and
conducts 16 semi-structured in-depth interviews with the founders of currently operating SMEs to identify
opportunity for entrepreneurship in Vietnam. As the result, a successful process of entrepreneurial
opportunity recognition requires an aggregation of prior knowledge and network ties which have been
nurtured for years before, along with the employment on either or both use of entrepreneurial alertness and
market analysis. This study proves that possessing an ability to analyze the market is as much important as
staying alert toward opportunities. Besides, a level of creativity of entrepreneurs will be triggered to respond
to situations in which the entrepreneurial opportunities arise. However, founders of SMEs generate more
adaptive style of creativity than innovative one since being market driven.
Keywords: opportunity recognition; entrepreneurship; SMEs
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Introduction
SMEs are an important part of an economy and bring undeniable welfare to the society. In Vietnam, they
account for 97% of total enterprises, of which nearly 60% are small-sized enterprises (General Statistics Office,
2017). The Provincial Competitiveness Index (PCI) 2015 survey jointly made by attempt of Vietnam Chamber of
Commerce and Industry (VCCI) along the United States Agency for International Development (USAID) also
presented the similar figures: Among the 8,335 domestic private enterprises responding to the PCI survey, 97.3%
are small and medium sized. Within such diverse business environment, SMEs are the engine of economic growth
in the emerging markets and significantly contribute to national development. SMEs in Vietnam occupy more than
40% of gross domestic product (GDP), contribute 31% to the total national budget and provide more than 50% of
total employment (Oxford Business Group, 2017). Moreover, SMEs’ contribution to social welfare security and
poverty reduction in Vietnam has been widely acknowledged. SMEs are not only major sources of employment
opportunity, but also foster productivity and make the environment become more dynamic and competitive
(Audretsch, Thurik, Verheul & Wennekers, 2002; Westhead, Uchasaran, & Wright, 2009). Detecting and electing
the appropriate opportunities are the vital activities to help create successful businesses (Stevenson, Roberts, &
Grousbeck, 1985).
During last 20 years, many scholars have conducted numerous researches about opportunity recognition and
development from a variety of theoretical perspectives and numerous aspects like business, sociology,
psychology, and economics. They highly contributed to the understanding of this field; however, opportunity
recognition has borne differences and conflicts causing the inhomogeneity (Ardichvili, Cardozo, & Ray, 2003). One
of the reasons is that each solely focuses on only one of the various elements affecting the recognition of
entrepreneurial opportunity. For example, Gaglio and Katz (2001) look into the entrepreneurial alertness involved
in opportunity recognition in terms of social psychology, while Shane (2000) concentrates on the essential prior
experience and knowledge for successful recognition, then Dyer, Gregersen, and Christensen (2008) investigate the
impact of innovation on opportunity. The fact that scholars pay attention to specific elements ensue many full-
scale studies about singular factors while neglecting an overview of all equally crucial elements and how they may
engage together in the same subject of study. Furthermore, there is little agreement on the main notions used to
identify and operationalize the process (Hansen, Shrader, & Monllor, 2011). Vagueness around how founders of
SMEs recognize opportunities for their business growth still appears in academic research, especially when SMEs
are now confronting the fast-paced transformation of technology and the world economic integration (Thai &
Chong, 2008).
Disclosure of the complex developing process of opportunities recognition is the central section of
entrepreneurship research (Venkataraman, 1997). This study is dedicated to focus on the phenomenon of
entrepreneurial opportunity recognition by founders of SMEs at the initial start phrase of their business
venture in the area of Ho Chi Minh City. In terms of academic, this paper seeks to explore and contribute a
throughout the process of entrepreneurial opportunity recognition by SMEs. In term of practical application,
this paper shows what SMEs need to have in hands and how potential entrepreneurs can recognize
opportunities that can turn into a profitable business by raising deeper knowledge about determinants to
opportunity recognition and its related process.
Literature review
Entrepreneurial opportunity and opportunity-related process
For many years, researchers have been disputing what genuinely institutes an entrepreneurial opportunity.
They brought about a broad category of different notions, sometimes ambiguous or even conflicting, which
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gives rise to a substantial extent of variety in prospects (McMullen, Plummer, & Acs, 2007). For instance,
entrepreneurial opportunity has been identified as an idea (Davidsson, Hunter, & Klofsten, 2006), as an
unexploited project (Casson & Wadeson, 2007), or a potential venture or business form (DeTienne & Chandler,
2007), or a realistic endeavor (DeCarolis & Saparito, 2006; Mueller, 2007). The business opportunity is considered
as an objective occurrence which is outward to SMEs and derives from the extraneous environment (Shane, 2003).
In contrast, some defines opportunity as a subjective happening inseparably connect with and spring from the
individual’s own perception and activities (Edelman, & Yli-Renko, 2010; Sarason, Dean, & Dillard, 2006). And
other scholars have suggested an argument that business world offers multitudinous types of opportunity
(Alvarez & Barney, 2007; Sarasvathy, Dew, Velamuri, & Venkataraman, 2003).
Additionally, opportunity recognition calls for not only the opportunity itself but also the discovering
process operated by the related person. While some have expressed opportunity is a sequel of fortuitous
findings (Long & McMullan, 1984), others have said that the opportunity-related process would come clear
(Bhave, 1994; de Koning, 1999), after a meticulous searching effort (Fiet, Piskounov, & Patel, 2005). In the
same vein, Baumol (1993) says that in order to discover entrepreneurial opportunity, a process to detect new
means-ends relationships must be set up by a given change. That also means entrepreneurs have to analyze
and brainstorm (Gaglio & Katz, 2001), like a cognitive process (Baron, 2004). Besides, the process which leads
one to opportunity has been identically considered as a process which one generates creativity (Ardichvili,
Cardozo, & Ray, 2003; Dimov, 2007; Hansen & Hills, 2004), or as an extraordinary action to solve a particular
problem (Harper, 2008). For instance, some operationalize business opportunity as a recently novel idea
subject (DeTienne & Chandler, 2007), while the rest operationalize it as the demand from the market for a
product or service that have potential to solve a particular problem (Eckhardt & Ciuchta, 2006). In some
circumstances, certain entrepreneurs possess the competence to sense and spot or even create opportunities
(DeTienne & Chandler, 2007; Kolvereid & Isaksen, 2006). Or some others have an innate trait like alertness, a
special individual competency to detect opportunistic situations (Busenitz, 1996; Ozgen & Baron, 2007).
Determinants affecting the entrepreneurial opportunity recognition
With the objective to recognize opportunity and start a venture formation, SMEs must proactively
involve in entrepreneurial activities from scratch. Founders of SMEs are likely perceived as entrepreneurs in
the process of pursuing new business and profit which will lead to enterprise formation (DeTienne &
Chandler, 2007; Gilmore, 2011). Approaching from the behavioral aspect of entrepreneurs, entrepreneurial
opportunity search includes knowledge, alertness, intuition, creativity and social interaction. By searching
the pattern of adopted activities of owners, the process evolves into opportunity recognition. Since the more
turbulent and complicated the marketplace is, the more opportunities entrepreneurs are granted;
entrepreneurial opportunity recognition may also come into existence from a complex series of phenomena
with different distinct parts such as innovative insight, idea exploration, informal evaluation and concept
development (Webb, Ireland, Hitt, Kistruck, & Tihanyi, 2011). Or through the argument by Ardichvili,
Cardozo, and Ray (2003), entrepreneurs undergo a process from observing underemployed resource or
market need to disclosing a ‘match’ between specific market need and certain resources; then formulating a
fresh ‘match’ between the need and resources in the specific context of their businesses. And the main
determinants influencing the above processes as well as contributors to entrepreneurial opportunity
recognition that are in need of further exploration include prior knowledge, entrepreneurial alertness,
market analysis, creativity, network ties and situational elements.
Prior knowledge
Knowledge plays an indispensable role to reach any sound and substantial decision-making as well as to
spot business opportunities. Shane (2000) claims that because of prior knowledge, owners can perceive the
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value of new information, which leads them to the recognition of new opportunity. Venkataraman (1997)
also declares that entrepreneurs recognize opportunities which are concordant with information that they
have already possessed. Since information is developed through singular life experiences, everyone owns
different stocks of knowledge and information. It is believed that distinctive pack of prior knowledge can
form a “knowledge corridor,” which enables one to spot some certain opportunities instead of the rest
(Venkataraman 1997). Shane (2000) claims that there are three main aspects of prior knowledge which are
customer problems, principles of the markets, and the means to benefit from the markets.
In another way of classification, two types of prior knowledge are postulated by Sigrist (1999). The first is
knowledge in a field of entrepreneurs’ special interest so that they will spend a tremendous amount of time
and effort learning, which helps advance and deepen their abilities, thereby gain esoteric knowledge in that
specified field. The other type of knowledge, which is a result of rational choice, will be accumulated over
the years, while owners constantly work in a certain job. Whether derived from education or working
experience or by fluke and any other ways, prior information makes a huge difference in the ability of
entrepreneurs to obtain, interpret and make the most of new information in the way which those in short of
that prior information cannot duplicate (Roberts, 1991).
Based on Austrian economists, the key to open, the entrepreneurial opportunity is within the
combination of knowledge and alertness (Murphy, 2011; Vaghely & Julien, 2010). As mentioned, when and
where disequilibrium between market needs and the means to satisfy those needs arises, opportunities are
just around the corner. For such reason, the Austrian believes that alert individuals can gain new
opportunities when their knowledge about market needs to be aligned with knowledge about the means to
meet those needs (Kirzner, 1997; Shane, 2000). However, even though numerous empirical evidence
embodies that prior experience have a substantial influence on the process of opportunity recognition and
development, some entrepreneurs still successfully sense and go after opportunities that they possess no
related prior experience before (Cooper, 1990).
Entrepreneurial alertness
Kirzner (1979, 1985), who is the first one to present the term ‘alertness’ into the entrepreneurship
literature, describes it as “the ability to notice, without search, opportunities that have been hitherto
overlooked” or as “a motivated propensity of man to formulate an image of the future.” It is implied in the
first interpretation that one can spot opportunities even when the person doesn’t intentionally seek for those.
In fact, when individuals possess high alertness, they may experience “passive search,” a condition in which
they are sensible of opportunities, without conducting any formal, systematic search. On the other hand, the
second interpretation means ability to “connect the dots” that empowers one to notice the nexus among the
changes or turbulence in the marketplace and to perceive those as significant, regardless the fact that the
cause and effect of opportunity at the moment are not evident yet (Leff Bonney, & Williams, 2009).
Therefore, the comprehensive dimension of alertness can be determined as the capacity of entrepreneurs to
generate a holistic depiction of the surrounding marketplace by assembling all of its constituents and
knowing their meanings (Endsley, 1995).
In fact, entrepreneurial opportunities may be recognized and captured by some particular individuals instead
of the rest. These dissimilarities result from the heterogeneity in people’s sensitiveness to opportunities to create
as well as to deliver new solutions (Ardichvili, Cardozo, & Ray, 2003), which origins from differences in people’s
innate ability, background and experience, and also the amount and sort of information they own in a specific
scope aligned with the opportunity. Endsley (1995) asserts that some individuals are so sensible of market gaps or
problems that in any environment they find themselves, they can constantly identify possibilities of creating new
products or services. Besides that, Gaglio and Kats (2001) also contribute to
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entrepreneurship literature that alert individuals possess a greater deal of knowledge and information within the
marketplace than non-alert individuals who may neglect or disregard fluctuations within the marketplace.
Market analysis
Actively searching for information is broadly acknowledged as a vital step during the process of
entrepreneurial opportunity recognition. Nevertheless, lately, many scholars have debated if entrepreneurs
seek for opportunities and how the process of value recognition due to the incoming of new information
happens to them (Ardichvili, Cardozo, & Ray, 2003). Kirzner (1997) disclaims that “What differentiates
discovery (related to hitherto unknown profitable opportunities) from successful search (related to the
intentional generation of information which one knew one had fallen short of previously) is that the former
includes the unexpected that accompanies along the manifestation that one had omitted something in fact
readily available from the beginning.” Koller (1988) also affirms that most entrepreneurs “recognize,” rather
than “look for” opportunities of their enterprises. Still, the possession of being market-driven or a marketing
orientation is believed to be crucial to business success (Hult, Ketchen, & Slater, 2005).
SMEs which intensely depend on the professional expertise and experiential knowledge of the founders,
along with a limited operational budget, have to be flexible to adopt suitable tradition marketing procedure
which is logical and well thought out, but not entail immense funding (Hulbert, Gilmore, & Carson, 2015).
From marketing literature, founders of SMEs can take advantage of some tools such as PEST analysis
(Fifield, 1992), situation analysis, SWOT analysis (Ansoff, 1969), marketing audit, Ansoff’s (1975) product-
market matrix, Porter’s (1979) five forces model… Cravens and Piercy (2003) perceive the benefit of such
evaluation tools is to clarify opportunities and gap in performance as well as to commence activities to
capitalize on those opportunities. Despite the confinement by impact and size, limited resources, and
expertise, founders of SMEs can still manage to run their business, make sound decisions and present their
market offerings to the marketplace by less formal, but more intuitive and predictive strategic planning
processes (Gilmore & Carson, 2007).
Network ties
Networking is an essential business aspect, especially when SMEs have to operate along the resource
constraints and impediments (Deakins, 1991; Gilmore, Carson & Grant, 2001). Hills, Lumpkin, and Singh
(1997) also say that the network ties of entrepreneurs are momentous to opportunity recognition. In reality,
networking activities revolve around the way that entrepreneurs operate their businesses, which refers that
it can be spontaneous, casual and opportunistic (Gilmore, 2011). Consequently, the network can also be
haphazard and disjointed, including bilateral or multilateral connections among different individuals in
some specific situations.
Based on Granovetter’s argument (1977), network consists of both strong and weak ties. Weak ties, which
comprise easygoing acquaintances, are more likely to yield distinctive knowledge and ideas than close friends
since most people tend to possess more weak ties than strong ones in their lives. Chetty and Holm (2000) express
that entrepreneurs who have broad network can improve their chances to encounter various opportunities, receive
new information, learn from other ones’ experiences, and gain values from the reciprocal effect of knowledge and
resource current. Moreover, social and business networks expand the horizon of SME owner-managers, offering
the means of approaching to new and different kinds of information that would otherwise be faced (Wilkinson &
Young, 2005). They do not only support the access and co-function of different resources for further development
and exploitation on entrepreneurial opportunities but also help back up on risks management as well as the
uncertainties involved (Wilkinson & Young, 2005). Furthermore, maintaining interactions with individuals in
social network and looking for information exterior the close social group will also bring about creative or
unconventional idea formation (Perry-Smith, 2006).
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Creativity
Creativity has been seen as a central organizational competency and a ground-breaking factor to future
business success, especially within SMEs (Palus & Horth, 2002; Bridge, O’neill & Cromie, 2003). Amabile (1997)
explains entrepreneurial creativity as “the construction and implementation of novel, yet appropriate ideas to set
up a new venture.” Individual creativity within a business pays a tremendous contribution to organizational
innovation as well as a general competitive advantage (Hirst, Van Knippenberg & Zhou, 2009). Creativity involves
one’s sensitiveness to the environmental change, inducing promotion of a high or low frequency of creative effort.
However, for many instances, entrepreneurs have a tendency to get higher score results in different creativity tests
than other individuals. Schumpeter (1934) is the first scholar to put forward the argument that because of
creativity, entrepreneurs can benefit from the opportunities that the rest cannot. In reality, creativity is best
obtained while one is in the flexible and non-predetermined state (Amabile, 1983).
Meanwhile, Fillis and Rentschler (2006) claim that creative solutions do not have to be complicated since
relatively primary responses are capable of leading to the business success. Timmons (1994) adopts a
viewpoint that raising a good idea is the initial step in the process of turning an entrepreneurial opportunity
into an actual business. Moreover, founders of SMEs are believed to display either an innovative or adaptive
style of creativity (Filipczak, 1997). Innovative creativity refers to activities of inventing new and different
ideas, while creativity relates to the modification of existing ideas and concepts. Besides that, an appropriate
environment or climate can facilitate and flourish entrepreneurial creativity from interactions between the
situation and the individual (Lee, Florida & Acs, 2004; Hunter, Bedell & Mumford, 2007).
Situational elements
In many cases, the situation that entrepreneurs involve around can be the game-changing factor leading the
whole process of opportunity recognition. Hulbert, Gilmore, and Carson (2015) say these external factors include
serendipity or luck when things happen at the right moment or the right place, which is favorable towards
entrepreneurs. Getzels and Jackson (1962) suggest the differentiation between entrepreneurial opportunities can
be clarified by the origins and developing level. Various sources for new opportunities emerge when there is an
understanding of the market, along with the business climate in which that market functions. To be more specific,
sources of business opportunity can directly or indirectly derive from crisis or fluctuation in the macro-
environments such as society, politics, economics or technological revolution and so forth or from the dynamic
changes within the market that SMEs operate in (Hulbert, Gilmore, & Carson, 2015).
Methodology
Exploratory qualitative research is adopted to fully discover the determinants affecting the
entrepreneurial opportunity recognition process by founders of SMEs and the inter-relationships among
those determinants. The benefit of using a qualitative approach is from its capability to seize the most of the
meaning and nature of opportunity recognition process from ways of looking by the research participants
instead of an assessment about the frequency of events or responses. This approach will accommodate a
framework which is driven by the research participants and allow researchers to explore the complexities
and the depth of phenomena and providing valuable and insightful material regarding the recognition of
entrepreneurial opportunity (Bamberger, 2000; Bryant, 2006). Besides that, such type of study is implicitly
correct to induce credible causal explanation for further extending managerial practice (Maxwell, 2005).
The method used for collecting primary data is a semi-structured in-depth interview. This type of method
is considered to be one of the best ways to explore an individual’s behavior and attitude (Tull & Hawkins,
1990). A sample of 16 respondents who are founders of SMEs is gathered primarily based on the definition
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and qualifying criteria of Small and medium-sized enterprises (SMEs) in Law of Enterprise: Article 3, Decree
56/2009/ND-CP by Vietnam government. The companies of these owners are currently operating within
various industries and scattering at different areas around Ho Chi Minh City. Moreover, all selected
companies must have been running under the management of the initial founders and successfully
functioning for at least three years.
In addition, the interview guide is based on the key themes developed from the literature review and
including a part about general background information of the companies and founders. There is a set of
questions to pose as well as a clear idea about what each interview has to cover, however, the discussion is
free to alter and subject to change substantially by the talking flow of participant. Following this method,
researchers can be confident that the obtained results about research participants’ thoughts and experiences
are reasonably accurate (Fylan, 2005). Data collection was undertaken in two months, and every interview
approximately lasted about 50 minutes each time. The recorded interviews are all transcribed into English
versions; then the data is analyzed and synthesized in accordance with the themes determined and
discussed earlier in the literature review. Identical cases, along with the background and nature of the
businesses, would be grouped together to form patterns of inter-relationships among the determinants to
discern how they cohesively influence the entrepreneurial opportunity recognition.
Findings
The findings of this study demonstrate how prior knowledge, entrepreneurial alertness, market analysis
and network ties are extremely essential for the process of entrepreneurial opportunity recognition. In
addition, the use of creativity and situational elements also plays a crucial role. Nevertheless, these
determinants portrayed divergent levels of importance in the companies studied.
Prior knowledge, a crucial key component in recognition of entrepreneurial opportunities, evolved from
actively spending time within some specific marketplace or field of activities. Prior knowledge from the
education system and experiential learning about the development of product and service was found to be
highly relevant to the answers of the founders in terms of their operating territories. This proved to uphold
the overall thrust of preceding researches and the literature associated with entrepreneurial opportunity
recognition. In fact, prior knowledge was conceded to be a precisely foundational factor to the process of
entrepreneurial opportunity recognition by 15 interviewed founders of SMEs.
The value of prior knowledge was adjacent to the significance of maintaining entrepreneurial alertness to
potential opportunities and executing market analysis along with strategic planning. While alertness was
viewed as a major factor in 11 cases, market analysis was not any less important in 10 out of 16 cases. Thus,
both factors were found to link to the entrepreneurial opportunity recognition of SMEs closely. Founders
who showed high level on entrepreneurial alertness exhibited the ability to spot the problems or notice the
gaps within the market, granted they were responsive to particular sorts of opportunities or working in the
field long enough to catch sight of its pattern.
On the other hand, other entrepreneurs expressed that using analytic tools enabled them to perceive available
resources obviously, and recognize their pros, and cons as well as evaluate the objectives of entrepreneurial
opportunities, although many of them did not think that the analyzing process had to be formal, over-organized
or expensive. These founders intuitively and informally collected information which was helpful for the
development of product offerings and the current market. Unlike being proved in previous researches, founders
of SMEs either utilized entrepreneurial alertness or adopted market analysis; or in this study, four entrepreneurs
employed and took advantages of both approaches to reach sound decisions on whether they should exploit the
opportunity and how they should turn it into a profitable business.
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From all positive responses in 16 interviews, it was evident that network ties were an indispensable factor
to the process of entrepreneurial opportunity recognition. The founders acclaimed that network ties, both
weak ties and strong ties, did not only provide the new information and insight, but also help update the
market condition. Through it is either intentional or unintentional, many admitted to be opportunity-driven,
which meant they had a tendency to make new acquaintances that were beneficial to their businesses.
Moreover, some founders said they received monumental assistant from family ones or long-term
relationships whom had professional knowledge or experience during the process of discovering, evaluating
and even developing their entrepreneurial opportunities. Especially, possessing a broad social as well as
business network appeared to be a prominent factor that helped founders confidently decide to start off their
own ventures.
Directly affecting the process of entrepreneurial opportunity recognition, the four determinants were also
conjoined with one another and put in use by entrepreneurs. From interviews, there are four main patterns
of inter-relationships in terms of the perceived relative importance of prior knowledge, entrepreneurial
alertness, market analysis and network ties. The analysis is further described in the context that was linked
to each process of opportunity recognition by each entrepreneur.
Inter-relationships among prior knowledge, entrepreneurial alertness, market analysis and network ties
Prior knowledge, entrepreneurial alertness and network ties are of high importance; market analysis is of
low importance
Six cases illustrated the application and significance of prior knowledge, entrepreneurial alertness, and
network ties, while implied that market analysis was marginalized. Founders of SMEs showed that they had
years of various experiences which may directly or indirectly associate with the spheres of their business
operation, but all prior experiences appeared to be helpful. Since possessing meticulous observation,
sensitiveness, and knowledge in hands, they were alert to opportunities rising within the environment. For
such reasons, entrepreneurs were well-perceived of opportunities and did not need any further analysis.
During the process of opportunity recognition, founders of SMEs acknowledged that they did not only get
support from strong network ties such as family ones and close friends but also saw network in general as a
factor that helped generate sources of income for the business. Specified cases from 6 SMEs are shown in
Table 1.
Prior knowledge, market analysis and network ties are of high importance; entrepreneurial alertness is of
low importance
Five cases displayed how essential prior knowledge, market analysis, and network ties are, while
entrepreneurial alertness was a minor factor. In this pattern, founders of SMEs referred they were all experts
having long-term experiences in their current industries. Because of the feature of the industry and the
awareness on the importance of market analysis, founders of SMEs conducted some evaluations and form
strategies by using some marketing tools. It was proved that market analysis by SMEs was mostly informal
but practical and helpful. Moreover, these founders did not foresee or expect opportunities or exhibit
alertness towards his/her opportunities. Instead, they were confident with their professional skills, along
with strong network ties that they could successfully function in the right market with the right target
segment. Specified cases from 5 SMEs are shown in Table 2.
All four elements prior knowledge, entrepreneurial alertness, market analysis and network ties are of
high importance
Four cases exhibited the presence of prior knowledge, entrepreneurial alertness, market analysis and network
ties during their processes of entrepreneurial opportunity recognition. Founders of these SMEs expressed to carry
their prior knowledge along from previous employment. Only one founder from company 16 did not get
education aligned with his field of current business. However, he expressed the knowledge came handy, and a
businessman should flexibly take advantage of all available resources. Market analysis also played an important
role that helped redefine the availability of opportunities, even though founders were
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alert before. Once again, network ties appeared as a fundamental factor that entrepreneurs needed to have
before startup. Specified cases from 4 SMEs are shown in Table 3.
Entrepreneurial alertness, market analysis and network ties are of high importance; prior knowledge is of
low importance
One out of 16 cases illustrated that all elements served as critical factors to recognize entrepreneurial
opportunity, except prior knowledge. Founder of SMEs studied and had a successful management career in
another business field. Still, he was alert to coffee issue around the environment and conducted some market
analysis to evaluate potential development of his future business. Founder indicated using similar strategic
planning process with his business in construction. He also, like other founders of SMEs, expressed a level of
importance of possessing network ties in the business world. This specified case is shown in Table 4.
Utilization of creativity to capitalize on sources of
opportunities The role of creativity
16 founders fostered various shades of creativity to generate distinctively, yet applicable ideas of problem-
solving. Those were embedded in products or services of these SMEs, becoming their competitive advantages that
differentiated their businesses from the rest. For such contribution, creativity can be believed to hold an important
position in the process of entrepreneurial opportunity. Through this study, creativity by SMEs is identified and
evaluated in terms of adaptive style or innovative style (Filipczak, 1997). Table 5 and 6 will respectively
demonstrate further these two styles of creativity within the context of each SME’s opportunity.
Adaptive creativity. Adaptive creativity relates to the modification of already existing idea and concept
into a new one. In this case, the founders of SMEs saw the span between what they knew from prior
knowledge and the solution in need to grasp the opportunity. And they decided to remove the span by
adapting their products or services to match the demand of the market. And through all the interviews, 12
founders of SMEs implied that they adopted this style of creativity.
Innovative creativity. Innovative creativity refers to the activities to invent a new and distinguishing idea
and concept. Only four out of 16 founders of SMEs indicated that they adopted this style of creativity. The
common was that these founders were all the first ones in their field to invent these distinguished products
or services.
The role of situational elements
As mention in the literature review, situations that entrepreneurs were involved in could be the game-
changing factor to their businesses. If the founders were not at the right time or the right place to encounter
the sources of opportunities, they could not manipulate other factors and achieve such successes. Table 5-6
respectively demonstrate a brief of situations that entrepreneurial opportunities revolved around, along with
the creativity generated by SMEs. In the following section, eight special cases of 8 SMEs in which the
situational elements were highly important, are illustrated in details.
Benefit from the dynamic market. In a fluctuating market such as real estate, founder of SME 07 grasped
the opportunity right at the time that this market was vigorously active after being gloomy for a long time. A
“fever” over villas and luxury apartments in the new urban was widely outspread. This led to the need of
increasing demand for advertising and marketing activities in real estate industry. If the founder started off a
year earlier, then it could not work out since the market was still stagnant. And in the year after, market
uncertainty increased.
Benefit from changes in the environment. Changes in the environment can also offer numerous entrepreneurial
opportunities. In the cases of SMEs 05, 08 and 12, these founders noticed the opportunities arising from politic and
economic changes. After Vietnam government issued or amended the law and regulation, these events induced
and benefited more SMEs to flourish. For SME 11, founder established his construction venture after 1 year when
Vietnam officially became a member of WTO. This economic change allowed his business to receive benefit from
the exceeding FDI influx into construction and real estate sectors. As another major change affecting every other
aspect, new technology development was found to link to SMEs
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03, 09 and 13 closely. These founders sensed the potential enlargement in demand for products and services
related to computers and technology solution in both B2C and B2B markets. And it is crucial to choose the
correct time interval since the market needed to reach a level of maturity to be ready to accept technology
into the daily life as well as business operation, while the entrepreneurs were still forerunners to catch the
opportunities in their fields.
Conclusions
This study intends to explore the determinants and their inter-relationships that have an impact on the
process of opportunity recognition of SMEs from the first place. It can be concluded that six determinants
including prior knowledge, entrepreneurial alertness, market analysis, network ties and situational elements
have their particular role during the process. Prior knowledge and network ties that founders accumulated
from previous work and study appear to be the fundamental determinants which all founders of SMEs have
to possess before startup. Then comes the practice of entrepreneurial alertness and market analysis.
Founders of SMEs exhibit to tend to take advantage of either or both determinants. Entrepreneurial
opportunity can be recognized through a scrupulous market analyzing either the mechanism or being alert
to turbulences within the environment or maybe by a combination of both two determinants, along with the
help from expertise and network. The process of entrepreneurial opportunity recognition also requires SMEs
to employ a certain level of creativity. Products or services of SMEs tend to show more adaptive style of
creativity than innovative style of creativity since being market driven. And last but not least, sources of
opportunities arising from market dynamics and changes in the environment, so entrepreneurs who can
quickly approach and respond to the situation will gain opportunity and bloom.
Due to the complexity and the depth of this research, it hopes to contribute to the framework building of
entrepreneurial opportunity recognition by SMEs. However, further researches with bigger sample size in
different contexts of cultures as well as economies need to be conducted to affirm, broaden and validate the
findings.
Limitation of research
Despite the attempt to avoid impediments, this study still bears some limitations. Firstly, the research
respondents are only SMEs within Ho Chi Minh City area, which is the most dynamic and prosperous city
of Vietnam. Secondly, this study is written in English. Thus, transcriptions from interviews in Vietnamese
may not comprehensively convey all ideas and expressions of the respondents.
Acknowledgement
Here is to acknowledge that this study received no support by any finding organization.
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Table 1 – Prior knowledge, entrepreneurial alertness and network ties are of high importance; market
analysis is of low importance
Firm Background of business Findings
01 Healthcare product from Prior knowledge – high importance – ‘I have had 6 years
Lingzhi mushroom working in the functional food industry and got training by
Age of company: 3 years many professors and doctors about the benefits and methods to
Experience/qualifications of proactively maintain self-healthcare’
founder(s): Entrepreneur alertness – high importance – ‘I can clearly see
Degree in Education. Used to around a cherished trend in using healthcare products such as
be founder of a private mine which are made from Lingzhi mushroom’
kindergarten in 5 years; then Network ties – high importance – ‘I got support from a group
entered the functional food of close friends who are also entrepreneurs. One is CEO for
industry by working for some big corporations. One is an owner of a graphic design
Vision. Been in the functional studio. And some others also involved. They all considered this
food industry for 6 years. business as their “brainchild” and contributed to its
development even though they are not owners in terms of
legal… Besides, from the scratch, most customers who were
willing to buy and introduce my products to others were from
my long-term relationships from previous works’
Market analysis – low importance – ‘I didn’t formula any
specific and methodical strategy for my business... My only
motto is to go hand in hand with social well-beings’
02 Termite and pest control Prior knowledge – high importance – ‘I applied what I learned
services in Hanoi University of Agriculture… Also, I worked in this
Age of company: 15 years industry for 5 years at different positions for a pesticide
Experience/qualifications of supplier, which helped create a solid base’
founder(s): Entrepreneur alertness – high importance – ‘At the time, the
Degree in Plant Protection Northern had already developed this service, but Saigon was
Engineering. Been working still a new market for termite control. People simply thought
in the industry for 20 years. that they could buy insecticide to terminate it, but they didn’t
Started as a business understand behaviors of termite. And that was my
development executive then entrepreneurial opportunity’
became business Network ties – high importance – ‘I had friends who had
development manager for a already established their own companies providing this service
pesticide supplier in Hanoi. in the Northern, and they made profits. They suggested I
should develop this market in Saigon and gave me advice since
they agreed this was a huge opportunity’
Market analysis – low importance – ‘I didn’t conduct any
market analysis at the beginning since I didn’t learn about
business; I was in technical major… My services aren’t daily
consumer good, so they don’t need that much evaluation’
07 Media consultancy to real Prior knowledge – high importance – ‘Working at that position
estate companies in DongA bank helped me build constructive ideas about
Age of company: 3 years startup and how to run a business…’ After that he was in media
Experience/qualifications of industry for 2.5 years as a general assistant and found himself
founder(s): with ability to connect people and take advantage of their
Bachelor in Banking and competencies
Finance. Started career in Entrepreneur alertness – high importance – ‘For me, to do
banking and strategic business is to see the ability to make profit from a certain
restructuring position at problem or gap. I saw the gap in the media, especially the media
DongA bank. Then worked for real estate, so I decided to open my own company’
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as a director assistant for a Network ties – high importance – ‘If a company cannot build
company operating in relationships in media industry, then it cannot survive... As
communications for 2.5 years well as my forte is finding and assembling the right people who
are good at their expertise, so they will best accomplish the job
assigned’
Market analysis – low importance – ‘This business was so
young at the beginning, so I basically didn’t pull out any
strategy since we needed to focus on daily operation… I
worked in this field long enough, I had experience, there was
no need to conduct statistical surveys’
08 Travel agency Prior knowledge – high importance – ‘During my time working
Age of company: 19 years in the media industry, I worked on the principles of human and
Experience/qualifications of information management, communication and clients… After
founder(s): that, I joined a 3-year course about tourism by Pacific Asia
Bachelor in Business Travel Association of America (BATA)... I also attended many
Administration. Started seminars about tourism before open up this business’
career as an editor for a Entrepreneur alertness – high importance – ‘Despite the fact
government newspaper, that at the beginning, I didn’t completely foresee, but I sensed
VGP News and responsible that a travel industry should be exploited’
for the section of economic Network ties – high importance – ‘I have to admit that I
news. Accidentally ran into considered previous relationships from VGP news and
the traveling field after government made it easier for me to approach different sources
taking part in a course about of potential customers’
tourism by Pacific Asia Market analysis – low importance – Founder already
Travel Association of recognized this is a fruitful market; thus, he did not conduct any
America (PATA) because he analysis or formulate any strategy at the beginning.
needed to collect news.
10 Homely Vietnamese Prior knowledge – high importance – ‘I helped my parents with
restaurant their small food stall since I was 14 years old’… ‘What I learned
Age of company: 6 years from Saigontourist and InterContinental gave me an overview
Experience/qualifications of about the F&B industry and helped me set my own standard in
founder(s): my own services, products and how I trained my staffs’
Studied in School of Tourism Entrepreneur alertness – high importance – ‘When I was 22 year
and Hospitality old, I noticed that my parents’ traditional food stall consumed
Saigontourist. Degree in too much energy, so I needed to change that... Although I
Restaurant Management. subjectively made every decision, I believe that I had a sense
Started career working for that enabled me to create a homely restaurant like no others at
Vietnam Airline and then the time’
InterContinental Saigon in a Network ties – high importance – Founder disclosed that he
following year. wanted to open his chain of restaurant outlets because of his
family’s tradition in selling Vietnamese foods. He also got
strongly supported by all members during the first days. His
mother passed on her food recipes, while his father and elder
brother helped daily tasks to keep the business run smoothly.
Market analysis – low importance – Founder decided business
activities based on his own intuition ‘The only important thing
is to make difference and to understand customer’s demand’
12 Environmental science and Prior knowledge – high importance – Because of knowledge
technology and experiences collected through academic studies as well as
Age of company: 12 years working with other scholars and professors in institutions to
Experience/qualifications of solve practical problems for government and private
founder(s): enterprises, founder could confidently establish his firm.
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Ph.D. in Environmental Entrepreneur alertness – high importance – ‘A great deal of
Engineering. Been having construction enterprises and power plants were set up back
more 23 years of experience. then; however, there were few of specialists who could consult
Used to be director of or implement waste-water treatment. My opportunity was
another science institute and right there, so I captured it’
lecturer in a few universities Network ties – high importance – ‘I built up this company with
and colleges. some colleagues who were working in the same field... I also
received quite a few pieces of advice from professor and
scholars before doing on my own business… And I already had
a certain number of clients who trusted my expertise during my
time working at different institutions’
Market analysis – low importance – ‘My colleagues and I are all
scientists. We had experience, technique and a wide network,
so we knew there was high demand and no need further
analysis’
Table 2 – Prior knowledge, market analysis and network ties are of high importance; entrepreneurial
alertness is of low importance
03 Technology solutions Prior knowledge – high importance – Founder has had more
than 10 years of experience… And he emphasized that ‘It is
Age of company: 5 years important to continue to learn from practical experience,
Experience/qualifications of reading, following the trends of technology development’
founder(s): Market analysis – high importance – ‘I built 1-year, 3-year and
Bachelor in Computer 5-year plans as well as strategies for my products… The
Science and Engineering. business was small and I had limited resources, I used basic
Been working in technology tools to evaluate and position the target market segment, to
industry for 11 years. Started decide how to develop an appropriate products for Vietnamese
career from IT staff to IT customers, and to understand my rivals and avoid direct
manager then project competition’
manager for a high-tech Network ties – high importance – ‘I always welcomed
company. constructive opinions from different people with different
backgrounds, especially people who were better than me, since
they all provided helpful information and different viewpoints
challenging my stances and critical thinking’
Entrepreneur alertness – low importance – Founder used his
own knowledge and experience along with the process of
observing and evaluating the industry to detect his business
opportunity.
05 Safety labor training and Prior knowledge – high importance – ‘All knowledge that I
inspection learned from university and experience I collected from
Age of company: 5 years previous works hugely contributed to the process of
Experience/qualifications of opportunity recognition in terms of technique’
founder(s): Market analysis – high importance – ‘Every 1 or 2 years, the
Bachelor in Mechanical government will revise and adjust law for inspection, so we
Engineering. Been in the need to build and make adjustments for our business strategy
inspection and safety annually. At the beginning, we hired a specialized marketing
training industry for 10 agency to build our brand… We also classified our categories
years. Used to hold positions of customers to offer suitable services… We conducted
such as Head of Pressure,
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Head of Laboratory for some evaluation on our competitors in terms of technical skills and
state-owned enterprises and team of sellers’
a trainer for the Department Network ties – high importance – ‘There are 3 members in
of Labor Safety. board of directors. We have different strengths, which helps
complement one another… And I consider everyone within my
network as a seller, whom can help expand the company
reputation and maybe income…’ Besides that, owner admitted
that inspectors from government had certain support for his
company.
Entrepreneur alertness – low importance – ‘We have to study
and carefully analyze our market frequently. There is no way to
instinctively run a business in this industry’
06 Interior and graphic design Prior knowledge – high importance – Owner has passion for
Age of company: 3 years design, aesthetics and perceives opportunity as “something
attached to one’s forte and vocation”. She also claimed that her
Experience/qualifications of graphic design skill and aesthetic creativity was from the time
founder(s): she spent in university, plus experience during her previous
Director: Bachelor in Interior works.
Design. Working in this Market analysis – high importance – ‘After research, one will be
industry for almost 10 years. well-equipped with information in a specific field, they will be
Started career by working for more knowledgeable and see things that outsiders cannot... We
some design and identified our market segment... The most profitable projects
construction consulting were space-based commercial businesses such as restaurants
companies, then busted out and coffee shops... My husband was in charge of market
being a lecturer at Saigon research by using Google analysis tools, building strategies and
Technology University and professional promotion for the company... Thanks to his effort,
working freelance I knew we could expand our market to the North’
Co-founder (husband): Network ties – high importance – ‘Current design employees
Bachelor in Business are friends and colleagues who have been together before the
Information Technology. company was established… My husband manages online
Responsible for online marketing, which helps find 70% of total client number’
marketing of the company. Entrepreneur alertness – low importance – Founder did not see
any specific trends or expect to open her own business. While
offered a lot of projects, founder felt “positive” about her work
and decided to form a business so that her coworkers and
employees could get well-deserved benefits from the company.
11 Construction design and Prior knowledge – high importance – ‘To me, knowledge is 30%
consultancy of what I got from school and 70% left is from experiences I
Age of company: 9 years gained from 8 years working in construction corporations
Experience/qualifications of before establishing my own company… My prior knowledge
founder(s): served as fundamental base for me to consider something as
Bachelor in Civil and entrepreneurial opportunity’
Industrial Construction. Market analysis – high importance – Founder used his
Working in the industry for experience working for big corporations before to conduct a
more than 17 years. Started formal marketing plan to identify appropriate business
as construction engineer, opportunity.
then became manager and Network ties – high importance – Founder considered network
vice director for some was the determinant factor in the construction industry as ‘No
corporations about one will trust you and hand you a project unless they have
construction and real estate. already known you; or their close acquaintances know you’
Entrepreneur alertness – low importance – ‘I planned to be
employee for a couple years to gain experience and build
network then busted out and started off my own company
because I wanted to be my own boss. That’s it!’
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14 Solar energy equipment Prior knowledge – high importance – ‘As a businessman, my
supplier husband has knowledge about sale and product marketing,
Age of company: 14 years while I take care of technical aspects, update information and
Experience/qualifications of comprehend the system and specification of the products’
founder(s): Market analysis – high importance – ‘Even though we didn’t
Director: Master in Industrial conduct anything professionally, but we did identify our
Electrical Engineering. After competitors to evaluate their offerings. When bidding, we
graduate, became a lecturer studied our potential partners in terms of the relevant projects
for Can Tho University; then and their specific demands... We also participated in some
worked for a representative technical fairs and made report programmes associated with
office of a Taiwan company television station to promote our brand as well as the trend of
about solar water heater for 4 using solar water heater’
years. Been having nearly 20 Network ties – high importance – ‘I am lucky to have my
years of experience in this husband as my business partner since day one. He is an
industry. excellent salesman and great teacher for the sales staffs…We
Co-founder (husband): discuss every project or problem and seek out the best solutions
Bachelor in Business for the company. Because of him, I could run this business’
Administration. Used to be Entrepreneur alertness – high importance – Founder did not
business development plan to establish any business. ‘We did not see this as an
director for some suppliers opportunity from the scratch. We carried some unfinished
about construction and contracts from the previous workplace and we decided to finish
refrigeration materials. what we were doing. Then new projects kept coming, so we
continued with what we thought we were good at the moment’
Table 3 – All four elements prior knowledge, entrepreneurial alertness, market analysis and network ties
are of high importance
09 Software development Prior knowledge – high importance – ‘I used to be an assistant
Age of company: 3 years for the CEO of a technology company, so I understand how to
Experience/qualifications of operate a technology company. Besides that, I have knowledge
founder(s): about Vietnamese cultural and market... My husband is a
Director: Worked for Finnish businessman with more than 20 years of experience. He
technology information is responsible for technical support and has a hope to bring
companies as an assistant of advanced technology from Europe to Vietnam’
CEO. Having 7-year Entrepreneur alertness – high importance – ‘Being alert to
experience in technology opportunity is very important while doing business... We saw
industry. Responsible for the shortcomings SMEs had and realized they needed a system
daily management and that could help them manage their business better. Many SMEs
operation of the firm. still manage their company by excel or books. Meanwhile,
Co-founder (husband): today's modern technologies can help them reduce book-
Career in technical solution keeping and costs, simplify and optimize management process’
consultancy and Market analysis – high importance – ‘Initially we went to
programming. Used to be survey and evaluated the market to find out specific needs of
programming security SMEs and whether they were ready to accept technology to
director of Nokia Finland. create the most appropriate line of products and services… We
Having more than 20-year used SWOT, product and service life cycle analysis, and outline
experience. Legal a 1-year and 3-year term strategies for the company’
representative of another Network ties – high importance – ‘Since we felt confident with
programming business, 20-year experience as well as prestige of my husband, we were
Nodeon Vietnam. In charge more willing to take the risk and choose startup’
of technical aspect and
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somewhat operation of the
firm.
13 Software and Prior knowledge – high importance – ‘All my experience
telecommunications collected daily through work, through failures... The most
equipment supplier important thing is that all accumulated experience could enable
Age of company: 6 years me to determine whether I should exactly develop one
Experience/qualifications of opportunity or not’
founder(s): Entrepreneur alertness – high importance – ‘Business
Working in the industry for opportunity is when there is a juncture to easily dominate the
20 years. Bachelor in market and get benefit from it... I saw the scarce in IT services
Computer Science and as well as IT products. And the potential development was very
Engineering. After graduate, high, so it was right to start off a company specialized in these
worked for some services’
international technology Market analysis – high importance – Founder emphasized that
corporations with highest it was important to update information on technology regularly
position as director. and find opportunities through market research activities since
those helped define the demand of customers to meet.
Network ties – high importance – Founder believes that ‘more
heads are better than one’ and ‘ learn from the experiences of
others and himself, but always filter opinions and advice to take
the suitable ones’
15 BTL Marketing agency Prior knowledge – high importance – ‘In this industry, you have
Age of company: 3 years to be clever in the way of behaving and understanding your
Experience/qualifications of customers, and how you can anticipate their expectations and
founder(s): thoughts. And all of that I learned in 13 years by doing the best
Bachelor in International of every project assigned’
Relations. Had 13 years of Entrepreneur alertness – high importance – ‘Opportunity is at
experience in the industry. the very moment that everything falls into place… The last
Stared working from junior project I did at previous workplace was to help Honda launch
year at Cattiensa Media a new sport racing car with the top technology, holograms. The
Group. After graduate, client was so satisfied with my work, so I realized that I could
worked for one marketing do more… There was also a high demand of marketing services
agency only in 8 years before from agencies. So I knew that was an opportunity to challenge
open his own business. The myself more and explore my potential’
highest position ever held Market analysis – high importance – ‘I evaluated my “unique
was account director, under selling points” (competitive advantages), analyzed the market,
management of general the tastes of clients as well as my capacity to meet their
director only. requirements... I set out a strategy that the first 5 year is for
branding, building appropriate service packages and a core
team. After 2 years of operation, I have had a certain amount of
clients, so now I plan to build up human resource... After 5
years, the company will probably grow and expand into
specialized service branches’
Network ties – high importance – ‘By having certain
relationships with a number of big clients as well as partners
associated with my previous work, I could maintain the
business at the beginning… To survive in BTL marketing, you
need to know how to connect many things together. When you
create an event for client, you know all the links and where to
contact to hold that event successfully... So always think of how
to expand your business network in this industry’
16 Freight delivery Prior knowledge – high importance – ‘I have had more than 10
Age of company: 5 years years of experience learning by doing in this industry… Yes, the
671

Experience/qualifications of knowledge I acquired at university, which is a completely
founder(s): different field, served like a foundation to my logical thought
Bachelor in Education and action’
Psychology. However could Entrepreneur alertness – high importance – Founder referred a
not find a job related to his businessman as a person who has ability to detect problems
study. Started to work for around and gain profits by providing sound solutions for such
some logistic corporations as problem. And he said ‘Opportunity in logistics is numerous’
an administrative staff, then Market analysis – high importance – ‘You need to understand
became manager, and finally your market, your position in the market and the gap between
got promoted as an area what you want to achieve and your resources at the time… My
director of outlets in Central services are specialized to served 3 groups of customers only
Vietnam. Been in the same (target segments): healthcare, baking and education… I am
industry for the best part of confident that even large corporations cannot compete with my
20 years. services for these 3 customer groups’
Network ties – high importance – Founder expressed that long-
term customers who confided on his competency in this field
from former workplaces helped him maintain a certain source
of initial income at the start.
Table 4 – Entrepreneurial alertness, market analysis and network ties are of high importance; prior
knowledge is of low importance
04 Take-away coffee Entrepreneur alertness – high importance – ‘I recognized the
distribution need for clean coffee from myself first, and I observed that
Age of company: 6 years people around me were in the same situation’
Experience/qualifications of Market analysis – high importance – ‘I planned short-term and
founder(s): long-term strategies. In the first 3-5 years, the company will
Bachelor in Business operate along the criterion of “a survival”. In the next 5-10
Administration. Working in years, the company gets into orbit. After 10 years, I will rapidly
construction industry expand the scale of outlets and maybe become a franchiser…’
approximately 10 years and Besides that, he emphasized ‘You have to be aware of your
running another business in strengths and limitations, know your main competitors and
the field of construction, main customers’
Oceancons. Network ties – high importance – ‘Mentors from my CEO
courses and my best friend who is co-founder of Oceancons
gave me incredibly valuable advice and opinions about my
business model and strategy… Even this is an entirely different
industry, but the principles to run a business are likely similar
to one another. So it is always a good choice to listen to other
viewpoints to expand your knowing’
Prior knowledge – low importance – Founder spent career
working in an entirely different business before entering into
the coffee industry ‘Before running this business, I had never
experienced any work or studied any courses related to coffee’
672

Table 5 – Adaptive style of creativity
Firm Source of opportunity Analysis
01 Dynamic marketplace – Change in Founder created bottle of Lingzhi drinking tea,
customer needs and tastes: Vietnamese which is more convenient and affordable than pure
people started using organic and Lingzhi mushroom and its sporangium. This SME
healthcare products. also offered Lingzhi gift boxes customized as
customer requirements.
02 Dynamic marketplace – Gap (un-met Founder was the first generation to run a termite
need): At the time, the South had very and pest control services in the South. He applied
scarce number of termite and pest control what he knew about pesticides from previous
services. works in Hanoi to educate Southern people and
solve their problem. Founder used adaptive
creativity due to different area climates and
different behaviors of termite.
03 Environmental change – Technology This SME provided a wide range of international
revolution and development. technology solutions from software to hardware
and cloud computing, but modified them to suit
different management systems of the users.
05 Environmental change – Change in After privatized, this field offered plenty
politics: Vietnam government issued new opportunities and also became more competitive.
law which privatized the safety labor The firm had to adjust the offering services and be
training and inspection in 2008. creative in way of finding new sources of
customers to compete against state-own enterprise
as well as other private enterprises.
07 Dynamic marketplace – Fluctuation in Founder saw the absence of promotion activities
real estate industry towards positive for a profitable market like real estate, so he
direction. grasped the opportunity by providing specialized
marketing services for this industry and adapted to
the need within the market.
10 Dynamic marketplace – Gap (un-met Founder managed to provide meals from hygienic
need) between customers’ expectation food sources along with friendly customer services
and what Vietnamese restaurants and cozy ambience.
provided.
11 Environmental change – Change in This company had capability to cover a whole
economy: Enterprises received project throughout from construction consulting to
monumental FDI for construction and designing and implementing with a guarantee ‘on
real estate after Vietnam became a time and in budget’ to its customers.
member of WTO in 2007.
673

12 Environmental change – Changing in This company did researches on each plant power
politics and economy: The government system then modified and applied the appropriate
amended the Law on Environment waste-water technology and treatment.
Protection in 2005.
13 Environmental change – Technology This company provided equipment and different
revolution and development. service packages related to computer maintenance
at house of users. Founder claimed that his
company had the most affordable offerings for
customers.
14 Dynamic marketplace – Dynamic This company provided customized solar systems
marketplace – Potential growth in for different types of projects from households to
demand for solar water heater. restaurants, hotels, factories and constructions…
15 Dynamic marketplace – Growth in This company modified and synthesized single
demand of outsourcing marketing service packages into an entire BTL marketing
services. project for its clients.
16 Dynamic marketplace – Change in The founder developed his business into 3PL
supply chain logistics services provider and specialized the
services for 3 customer groups including banking,
healthcare and education only.
Table 6 – Innovative style of creativity
Firm Source of opportunity Analysis
04 Dynamic marketplace – Gap (un-met This firm was among the first pioneers to apply the
need): The market was in shortage of take-away coffee model with unflavored coffee
clean coffee, while the demand of coffee products. Founder also invented and used his own
drinkers in Vietnam was very high. mobile coffee barrels by plastic to carry coffee and
ingredients.
06 Environmental change – Change in This company was one of the few companies which
economy: Numerous F&B businesses could provide a complete service package from
opened and flourished such as coffee branding to design and marketing based on
shops, milk-tea and small restaurants… distinctive requests from each creative project for
each F&B customer.
08 Environmental change – Change in The tourism industry was quiet a new market and
politics and economy: The government people did not really regard how they should
promulgated Law of Enterprise, which travel. This was the first travel agency to create
private enterprises were legalized in 1991 various travel packages such as team-building
and tourism started to develop.
674

tours and caravan tours based on criterion ‘happy
and unique’ of the founder.
09 Environmental change – Technology This company provided tailor-made ERP systems
revolution and development for different sorts of business. They also invented a
management program called Hurapos for retailers.
675

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