Prior Knowledge, Potential Financial Reward, and Opportunity Identification

Abstract

This article simultaneously explores the constructs of potential financial reward and prior knowledge of customer problems to provide a deeper understanding of the identification of opportunities. Results suggest that while prior knowledge of customer problems leads to the identification of more opportunities and opportunities that are more innovative, it also moderates the relationship between potential financial reward and opportunity identification. We found that the less knowledgeable an individual was about customer problems, the more positive the effect that potential financial reward had on the number of opportunities identified and the innovativeness of those opportunities.