Entrepreneurial alertness là gì

v.13, n.5

Vitória-ES, Sep.-Oct. 2016

p. 85 - 107 ISSN 1808-2386

//dx.doi.org/10.15728/bbr.2016.13.5.4

Received on 03/19/2015; Reviewed on 08/01/2015; Accepted on 09/09/2015; Divulgued on 09/05/2016.

*Author for correspondence:

†. Doctorate in Production Engineering.

Link: University Center -

CESUMAR/UNICESUMAR &

University of Oeste de Santa Catarina -

UNOESC

Address: Rua Joaquim Nabuco, 120 CEP

87014-100 Maringá – PR. Brazil. Cep.

87014-100.

E-mail:

PhD Student and Master in Business

Administration.

Link: University State of Maringá - UEM.

Address: Av. Colombo, 5.790, Bloco C23 –

Sala 239. Jardim Universitário. Maringá – PR.

Brazil. Cep. 87020-900.

E-mail:

¥ PhD Student and Master in

Business Administration.

Link: University State of

Maringá - UEM.

Address: Av. Colombo, 5.790,

Bloco C23 – Sala 239. Jardim

Universitário. Maringá – PR.

Brazil. Cep. 87020-900.

E-mail:

Note from the Editor: This paper was accepted by Bruno Felix.

This article has a Creative Commons License - Attribution 3.0 Not Adapted.

85

Entrepreneurial alertness: Study of the Influence of Individual Characteristics

and Entrepreneurship

Hilka Pelizza Vier Machado

†

Centro Universitário de Maringá /UNICESUMAR - Universidade do Oeste de Santa

Catarina/UNOESC

Valter da Silva Faia

Ω

Universidade Estadual de Maringá - UEM

Juliano Domingues da Silva

¥

Universidade Estadual de Maringá - UEM

ABSTRACT

This research tried to understand which statistical variables associated to the individual and

the company influence the entrepreneurial alertness. The sample was constituted by 180

entrepreneurs. The entrepreneurial alertness was measured in agreement with the model of

Tang, Kacmar and Busenitz [2012]. Descriptive statistical tests and normality exam were

developed; as well as checked the validity and reliability of the scale through Confirmatory

Factor Analysis [CFA]. In order to identify the factors that influenced the alertness we

developed multiple linear regression and the ANOVA test to determine possible differences

among groups [gender, education]. The results showed the negative influence of the

educational level and the size of enterprises on alertness level; as well as the negative

relationship between age and entrepreneurial experience, furthermore, shows that alert level is

not determined by gender difference. One of the main implications of this research is to

present factors that can potentiate the effects of the entrepreneurial alertness, enlarging the

possibilities of identification of opportunities for individuals.

Keywords: Entrepreneurial alertness. Opportunities. Businesses creation. Entrepreneurship.

86 Machado, Faia, Silva

BBR, Braz. Bus. Rev. [Engl. ed., Online],

Vitória, v. 13, n. 5, Art. 4, p. 85 - 107, sep-oct. 2016 www.bbronline.com.br

1 INTRODUCTION

pportunities are central elements in the Entrepreneurship field. The origin of

the emphasis of opportunities lies in the Austrian School of Economics

[FOSS; KLEIN, 2010]. The contribution of this school to the theory of

opportunity is enriched in Kirzner’s studies, in 1973, for whom, profitable

opportunities result from the imbalance of prices, quantity and quality.

Kirzner [1997, p. 62] uses the term ‘entrepreneurial discovery’, which

results from the Equilibrium obtained by market participants in the

systematic process of seeking knowledge on potential demand attitudes and market

supply. For the author, the market is a continuous process of opportunity discovery.

Earnings obtained in this process reflect the discovery and exploitation of opportunities

that had not been exploited due to lack of entrepreneurial activity. For the Austrian

school, competition is central and dynamic, it is the force that drives the discovery, and it

is discovery that characterizes the entrepreneurial process. Courage and imagination are

attributes that drive the market process, and that the approach of opportunities help us to

understand how markets work. The recognition of the importance of studying the

opportunities for the field of Entrepreneurship has also been observed in other studies,

notably Shane and Venkataraman’s [2000], who explained the entrepreneurial process as

a link between individuals and opportunities. For these authors, the field’s

epistemological challenge is to explain by whom and with what effect opportunities that

create goods and services are discovered, assessed and exploited by some individuals and

not by others.

According to Eckhardt and Shane [2003], the approach to opportunities enables a

convergence amongst researchers in the field, as it is a way to coincide on central issues on

the discovery, evaluation and exploitation of opportunities. The development of studies in the

field has two components: one that advocates the discovery of opportunity, which is

associated with the market equilibrium to information [FOSS; KLEIN, 2010], and another

which considers that the opportunity can be created and not only discovered [ALVAREZ;

BARNEY, 2007]. In addition, although entrepreneurs have a clear initial idea about what

they want to accomplish – such as the purpose and the type of product or service they

want to offer on the market –, they change their objectives and their business models and

strategies in response to environmental changes [BARON, 2010].

Alert Entrepreneur: Study of the Influence of Individual Characteristics

and Entrepreneurship 87

BBR, Braz. Bus. Rev. [Engl. ed., Online],

Vitória, v. 13, n. 5, Art. 4, p. 85 - 107, sep-oct. 2016 www.bbronline.com.br

Studies on entrepreneurial alertness were extended as a result of the importance

attached to the study of opportunity in order to understand the entrepreneurial process

[HÉBERT, LINK, 2006]. Alertness is characterized by a constant state of vigilance in the

environment, which allows some individuals to capture market opportunities favored by

constant attention [KIRZNER, 1997; VALLIERE, 2013]. In this sense, subjective and

entrepreneurship factors can influence alertness, and this research sought to identify them. In

addition to scientific relevance, research contributes to show elements that can increase the

identification of potential business opportunities by individuals.

The objective of the research was to identify factors that influence entrepreneurial

alertness, and this article presents the results of the research, which was performed with a

group of entrepreneurs composed of men and women.

2 LITERATURE REVIEW

2.1 OPPORTUNITIES AND ENTREPRENEURIAL ALERTNESS

The opportunity may be the result of an accidental discovery or a process developed

over time, having been created or discovered [ALVAREZ; BARNEY, 2007] or even

stimulated by certain contexts, such as the technological [ZAHRA, 2008]. Opportunities

can both be recognized and built simultaneously as they are discovered and developed

[VAGHELY; JULIEN, 2010]. There is a relationship between identifying and

recognizing opportunities, creativity and alertness [ARDICHVILI et al., 2003], and

alertness influences the discovery and exploitation of opportunities [FAIA, ROSA,

MACHADO, 2014; HÉBERT, LINK, 2006].

The origin of the entrepreneur alert concept is attributed to Kirzner [1979 apud

TANG; KACMAR; BUSENITZ, 2012, p.78] as being: “[...] a process or a perspective

that helps some individuals to be more attentive to changes, opportunities and neglected

possibilities”. For Ardichvili, Cardozo and Ray [2003, p.113], alertness is “a propensity to

notice and be sensitive to information about objects, incidents, and patterns of behavior in the

environment, with special sensitivity to maker and user problems, unmet needs and interests,

and novel combinations of resources”.

Alertness is a casual, accidental and unanticipated finding, coupled with the discovery

of a business idea, which some authors call ‘eureka’, ‘aha’ or even alert [LUMPKIN;

LICHTENSTEIN, 2005; VALLIERE, 2013]. For Valliere [2013, p. 436], alertness is

“[...]"stimulated to change his conceptualization of subjective reality and thereby to make

a new meaning for it.

88 Machado, Faia, Silva

BBR, Braz. Bus. Rev. [Engl. ed., Online],

Vitória, v. 13, n. 5, Art. 4, p. 85 - 107, sep-oct. 2016 www.bbronline.com.br

Creativity influences alert [ARDICHVILI et al., 2003], and it is an unfolding of creative

process. This process begins with preparation of the individual, through the accumulation of

experiences and by immersion in situations that require decision-making and the development

of problems solutions. Concomitantly, new mental associations are processed in the

incubation period, and the further away from existing standard models, the greater the

tendency of these associations representing something creative [BARON, SHANE, 2007;

GIELNIK, KAPPEL, FRESE, 2014]. For Gielnik, Kappel and Frese [2014], this is achieved

by means of divergent thinking. Thus, creative thinking emanates from the mind and

translates to “insights” [GIELNIK, KAPPEL, FRESE, 2014, p. 520], which constitute the

essence of alertness.

However, it is dependent on obtaining and evaluating information [GIELNIK,

KAPPEL, FRESE, 2014; SHANE, VENKATARAMAN, 2000], as well as the active

surveillance to obtain information to ensure the prior acquisition of knowledge [GIELNIK,

KAPPEL, FRESE, 2014]. Although causality characterizes alertness, it is also dependent on

the individual and subjectivity, which intervenes in the discovery process. For the alertness

process to occur, the initial idea is subjected to evaluation, which may include a market

assessment as well as an exchange of views with other people [GIELNIK, KAPPEL, FRESE,

2014]. In this sense, Keh, Foo and Lim [2002] investigated the evaluation of opportunities by

entrepreneurs and found that risk perception plays an important role, and that when the level

of risk perception is low, it is more likely for the entrepreneur to make a positive assessment

of the opportunity. On the other hand, the perception of risk and opportunity assessment is

dependent on subjective elements, such as the fear of failure and the vulnerability of the

individual [MITCHELL; SHEPHERD, 2010]. The expectation of financial return is

another important element in the assessment of opportunities, and when it is high it will

be positively related to the number of identified opportunities and the positive assessment

of the opportunities [SHEPHERD; DE TIENNE, 2005; WELPE et al., 2011]. According

to Welpe et al. [2011], the expectation of potential financial reward provides motivation

for individuals with little knowledge to identify opportunities, but it is little motivation to

those who have considerable prior knowledge – prior knowledge is associated with the

level of innovation opportunities. Thus, the greater the potential financial reward, the

greater the number of identified opportunities, although those opportunities are not

necessarily more innovative [SHEPHERD; DE TIENNE, 2005].

Alert Entrepreneur: Study of the Influence of Individual Characteristics

and Entrepreneurship 89

BBR, Braz. Bus. Rev. [Engl. ed., Online],

Vitória, v. 13, n. 5, Art. 4, p. 85 - 107, sep-oct. 2016 www.bbronline.com.br

Valliere [2013] emphasizes that the mental model of entrepreneurs who have

heightened alertness is rich in assigning value creation and is more strongly associated

with the internal and external stimuli, since they present ability to deal with unexpected

stimuli.

2.2 EXPLANATORY MODELS OF THE ENTREPRENEURIAL ALERTNESS

Valliere [2013] developed an explanatory model of the entrepreneurial alertness

that emphasizes the entrepreneurial attention and which consists of a state of alert and of

opportunity seeking, through the immersion in a knowledge corridor as well as through

the social role of the individual. For this author, there is a link between alertness and

attention. The structural factors and cultural norms or “mental frameworks [schemata]”

[p. 433] favor a particular situation of attention by individuals, focused on the need to

address changes in the environment. But individuals can use different schemes for the

same stimulus, and differences will be established from the richness of each one’s

schemes, through their own experience. Each individual prepares their own scheme,

making use of associations between existing schemes and the present stimulus. Thus, for

this model, alertness results from the richness of individual schemes of value creation,

mental associations and from the preparation of individual schemes. These, in turn, result

from expertise, practice and entrepreneurial intention, respectively.

Another alertness model is that by Tang, Kacmar and Busenitz [2012], for whom

alertness results from scanning and search mechanisms, where tacit and explicit knowledge

are important. Then, an association or connection between the information obtained and the

knowledge application possibilities will be required. While scanning and search are passive,

the association is proactive. During this stage, individuals need to manipulate information,

excluding redundant information and interpreting them, as well as trying to identify possible

associations between accumulated knowledge and new possibilities, however this process

requires a mental relaxation state. Tang, Kacmar and Busenitz [2012] consider that the search

for information must recursively occur, between association and connection, and ideas and

information or additional associations are produced by individuals throughout the process.

According to the model by Tang, Kacmar and Busenitz [2012, p. 79], entrepreneurial

alertness covers three dimensions: “[...] scanning and searching for new information,

connecting previously-disparate information and evaluating whether the new information

represents an opportunity”. The need for evaluation and judgment manifests itself

encompassing the attention and judgment of the opportunity by an unrelated person to the

90 Machado, Faia, Silva

BBR, Braz. Bus. Rev. [Engl. ed., Online],

Vitória, v. 13, n. 5, Art. 4, p. 85 - 107, sep-oct. 2016 www.bbronline.com.br

process and evaluation by the person themselves. The evaluated information is then discussed

with someone and followed by the individual resuming it, and that allows one to filter the

essential information and to make the evaluation if it really denotes a business opportunity

and thus, the individual perceives the situation. Judgment allows one to choose between

multiple possibilities.

The scale developed by Tang, Kacmar and Busenitz [2012, p. 84] to measure

alertness is constituted by three groups of variables: scanning and search, association and

connection, and evaluation and judgment. The first group of variables seeks to measure

search and scanning and the demand consists of six items: a] interaction with other

people for information; b] the search for new business ideas when one has access to

information; c] regularly reading news, magazines, publications for new information; d]

daily access to the internet; e] avid search for information; f] active and constant attitude

in the search for new information. To measure the ability of association and connection,

they suggest three indicators: a] identification of association between disconnected pieces

of information; b] good ability to ‘connect the dots’; c] vision of information across

previously unrelated fields of information. Finally, the measurement of evaluation and

judgment unfolds in: a] the ability to recognize potential opportunities; b] the ability to

distinguish between profitable and non-profitable opportunities; c] talent and ability to

distinguish opportunities for high value and low value; d] the ability to choose the best

among multiple opportunities. Table 1 presents a summary of the alertness models

discussed above.

Authors Assumptions Stages

Valliere [2013] Alertness and attention 1- Stock and wealth of information and

experience;

2- Preparation of individual scheme according

to experiences and stimulus;

3- Value creation

Tang, Kacmar and

Busenitz [2012] Scanning and search, association

between internal and external

knowledge.

1- Information scanning and search;

2- Associations and connections with existing

knowledge;

3- Evaluation and judgment by the person and

by third parties.

Table 1 - Explanatory models of the entrepreneurial alert

Both explanatory models are similar when recognizing the search and information

storage, the association of this information in the creation of entrepreneurial practices and the

evaluation of the value creation capacity of opportunities as entrepreneurial alertness

dimensions [VALLIERE, 2013; TANG; KACMAR; BUSENITZ, 2012]. However, for

Alert Entrepreneur: Study of the Influence of Individual Characteristics

and Entrepreneurship 91

BBR, Braz. Bus. Rev. [Engl. ed., Online],

Vitória, v. 13, n. 5, Art. 4, p. 85 - 107, sep-oct. 2016 www.bbronline.com.br

purposes of this research we used the scale by Tang, Kacmar and Busenitz [2012], since this

study proposes and validates a multidimensional scale to measure the degree of

entrepreneurial alertness.

Previous studies have explored the influence of subjective variables on the identification

of opportunities. DeTienne and Chandler [2007], for example, found differences in the way

of identifying opportunities for men and women. However, González and Husted [2011]

found no significant differences for gender regarding the number of identified opportunities

and the degree of innovation of such opportunities. For the authors, the negative effects were

associated with people with less work experience and not gender. Tang, Kacmar and Busenitz

[2012], when developing the entrepreneurial alertness scale, also tested the relationship with

gender and found only one significant result among the six tested models. Thus, it is assumed

that there are no differences between the entrepreneurial alertness for male and female

entrepreneurs:

H

1

: There are no differences between the entrepreneurial alertness for male and female

entrepreneurs.

In addition to gender, the identification of opportunities is associated with managerial

experience and the stock of knowledge, which can be derived from the age of the individual,

as noted by Lumpkin and Lichtenstein [2005] and Dimov [2007]. Both tacit as codified or

formal learning are associated with the identification of opportunities [SMITH;

MATTHEWS; SCHENKEL, 2009]. That is, individuals with higher managerial experience

and greater stock of knowledge are more likely to identify business opportunities. As alertness

is directly associated with the identification of opportunities, the hypothesis that forms is that

the older the age, the level of education and experience of the individual the greater the

alertness variations:

H

2

: Entrepreneurial alertness increases according to [a] age, [b] level of education and

[c] the experience of the individual

The entrepreneurial experience can influence the identification of opportunities not only

on the characteristics of the individual but also on the number of enterprises created and the

number of co-managed enterprises [FAIA; ROSA; MACHADO, 2014], which provides

experience to the entrepreneur, in addition to expanding their participation in social networks,

increasing their stock and wealth of information [VALLIERE, 2013]. Ucbasaran, Westhead,

Wright [2009] verified the effect of entrepreneurial experience and the number of ventures

92 Machado, Faia, Silva

BBR, Braz. Bus. Rev. [Engl. ed., Online],

Vitória, v. 13, n. 5, Art. 4, p. 85 - 107, sep-oct. 2016 www.bbronline.com.br

created upon the identification of opportunities, and the number of identified opportunities

proved to be positively associated with the number of ventures created up to the limit of four

projects. Similarly, entrepreneurial alertness can be influenced by the number of enterprises

created and the extent of entrepreneurial activity, therefore we have that:

H

3

: Entrepreneurial alertness is positively associated with the [a] number of enterprises

created and the [b] number of current developments of the entrepreneur.

We also consider that the project size can influence alertness, and the larger the

enterprise, the more likely it is to result in a broader view of the market and greater access to

information. Cohen and Levinthal [1990] show that the size of companies influences the

capacity to innovate and to allocate more resources for research and development. Mas-Tur

and Soriano [2014] demonstrated that the business size positively affects the degree of

innovation of young innovative companies, and for them, the larger the company the larger

the investment capacity to boost innovation tends to be. Thus:

H

4

: Entrepreneurial alertness is positively associated with the size of the enterprise.

In the proposed theoretical model [figure 1], we present the relations and directions of

the research hypotheses, which were tested empirically. The model suggests a direct

relationship between three different dimensions of entrepreneurial activity and the degree of

entrepreneurial alertness. First, we expect that the entrepreneurial characteristics interfere

with alertness. Second, we suggest that the entrepreneurial experience, measured by the

number of ventures initiated and managed simultaneously, will also present a relationship

with alertness. Third, we expect that the size of the enterprises currently managed to present a

relationship with alertness.

Alert Entrepreneur: Study of the Influence of Individual Characteristics

and Entrepreneurship 93

BBR, Braz. Bus. Rev. [Engl. ed., Online],

Vitória, v. 13, n. 5, Art. 4, p. 85 - 107, sep-oct. 2016 www.bbronline.com.br

Figure 1 - Proposed theoretical model

Source: Research authors

3 METHODOLOGICAL PROCEDURES

3.1 SAMPLE

This research used a quantitative, cross-sectional approach. The sample was non-

probabilistic for convenience, and consists of 199 micro and small entrepreneurs

operating in trade and services and are affiliated to Trade Associations of three

municipalities in the state of Paraná. To determine the presence of extreme values, we

chose to diagnose multivariate outliers according to the Mahalanobis Distance measure

[Marôco, 2010]. In this stage, 19 respondents were eliminated, so the final sample totaled 180

entrepreneurs. The sample size satisfies the condition for multivariate analysis, which requires

at least five respondents for each item [HAIR JUNIOR et al., 2009].

3.2 DATA AND METHOD

The data collection instrument used was a structured questionnaire with questions about

the company [number of employees, foundation year]; on entrepreneurs [age, gender,

schooling, length of entrepreneurial activity time, number of companies already opened] and a

scale to measure alertness, developed by Tang, Kacmar and Busenitz [2012], previously

validated by Faia, Rosa and Machado [2014].This scale, as mentioned earlier, consists of 13

items divided in three dimensions: scanning and search [six items], association and

connection [three] and evaluation and judgment [four]. Data collection was carried out

through a specific link on the internet, accompanied by an explanation of the research

Characteristics of the

Entrepreneur:



Gender



Age





Experience

Characteristics of Entrepreneurial

Experience:

Ventures



Current Ventures

Venture:



Size of Ventures

Entrepreneurial alertness





Association and Connection

Evaluation and Judgment

94 Machado, Faia, Silva

BBR, Braz. Bus. Rev. [Engl. ed., Online],

Vitória, v. 13, n. 5, Art. 4, p. 85 - 107, sep-oct. 2016 www.bbronline.com.br

objectives. To measure the degree of entrepreneurial alert, we used a Likert scale of five

points anchored by 1– totally disagree and 5 – totally agree.

The analysis of results occurred through five steps: [a] descriptive statistical tests and

examination of normality; [b] verification of the validity and reliability of the scale through

Confirmatory Factor Analysis [CFA], since the scale had already been validated in previous

studies, and convergent and discriminant validity tests; [c] correlation analysis between

variables [Pearson correlation]; [d] multiple linear regression to identify the factors

influencing alertness; and [e] ANOVA [analysis of variance], to determine whether means

differences between groups [e.g. gender, schooling] were significant, and if those groups exert

influence on the dependent variable [Alertness]. Analyses were performed with the use of

software IBM SPSS Statitics 20® and IBM SPSS Amos 20®.

For the items on the alertness scale, we performed the univariate normality analysis

obtaining the skewness and kurtosis measures, satisfying the condition to assume the

normality of the variables [MARÔCO, 2010]. Through these measures, we also obtained

the normal distribution of the entrepreneurial alertness degree between the different

sample groups [Appendix A]. For the ANOVA test, we assume that each group comes

from a normal distribution, regardless of the number of observations [FÁVERO et al.,

2009].

4 RESULTS PRESENTATION

4.1 SAMPLE CHARACTERIZATION

Table 2 presents a description of the sample. Most entrepreneurs were male

[72.2%], having initiated only one venture [67.2%], most with schooling in higher

education [67.8%] and had small businesses, according to criterion of number of

employees. Most entrepreneurs have only one company; the current number of ventures

for 23.9% of participants varied from 2 to 7. The average age of entrepreneurs was 37

years of age, and the average time as an entrepreneur is close to seven and a half years.

Alert Entrepreneur: Study of the Influence of Individual Characteristics

and Entrepreneurship 95

BBR, Braz. Bus. Rev. [Engl. ed., Online],

Vitória, v. 13, n. 5, Art. 4, p. 85 - 107, sep-oct. 2016 www.bbronline.com.br

Table 2 - Sample Description

Characteristics

Entrepreneurs [n=180]

Gender

Male 72.2%

Female 27.8%

Education

Elementary School 1.7%

High School 30.0%

Undergraduate Degree 36.1%

Graduate Degree [Specialization] 28.9%

Master’s Degree 2.8%

Not reported .6%

Number of Initiated Ventures

Only 1 67.2%

More than 1 32.2%

Not reported .6%

Number of Current Ventures

Only 1 76.1%

More than 1 23.9%

Average age [years]* 37.0 [11.7]*

Monthly Family Income [BRL][R$]* 15,317.13 [49,167.33]*

Entrepreneurial experience [years] 7.6 [6.9]*

Size of Current Ventures [Func.] 15 [38]*

* Mean [Standard Deviation]

4.2 VALIDITY AND RELIABILITY OF SCALE

Initially, the data obtained by the entrepreneurial alertness scale [TANG;

KACMAR; BUSENITZ, 2012] were submitted to normality, validity and reliability tests.

The 13 items have maximum values for skewness and kurtosis measures of 1.34 and 1.58,

respectively. These measures allow us to assume the normality of the data [MARÔCO,

2010]. The confirmatory factor analysis test

1

[CFA] demonstrated that all items have

significant factor loadings on their respective size, i.e., they present factor loadings

greater than .50, indicating an explanatory power of at least 25%. In addition, the second-

order factor analysis also presented significant factor loadings of the dimensions on

entrepreneurial alertness, with a minimum value of .63. All the values are listed in Table

3.

1

Model’s Fitting measures: χ

2

= 175.27; p = .000; χ

2

/df = 2.87; CFI =.91; GFI =.87; TLI =.88; RMSEA = .10; p

= .000.

96 Machado, Faia, Silva

BBR, Braz. Bus. Rev. [Engl. ed., Online],

Vitória, v. 13, n. 5, Art. 4, p. 85 - 107, sep-oct. 2016 www.bbronline.com.br

Table 3 - Validity and Reliability of Items of the Entrepreneurial Alertness Scale

Dimensions and scale items Factor loading

Factor Analysis of 1st Order

Scanning and Search AVE =.52 / CR = .87

I often interact with others to acquire new information. .63

I'm always looking at new business ideas when I see some information. .65

I regularly read news, magazines or publications to get new information. .58

I surf the Internet every day looking for information. .69

I am an avid [insatiable], information seeker. .87

I'm always actively seeking new information. .87

Association and Connection AVE =.67 / CR = .86

I see associations between seemingly unrelated information. .77

I'm good at connecting points [finding opportunities relating seemingly unrelated

facts]. .82

I usually see connections between information from various seemingly unconnected

fields of knowledge. .87

Evaluation and Judgment AVE =.56 / CR =.83

I have an instinct to find opportunities with potential. .59

I can distinguish between profitable and not so profitable opportunities. .79

I have a talent for separating high-value opportunities from low-value opportunities. .79

When I come across several opportunities, I am able to select the good ones. .79

Factor Analysis of 2nd Order

Entrepreneurial alertness AVE =.62 / CR = .83

Scanning and Search .89

Association and Connection .82

Evaluation and Judgment .64

Once the factorial validity of the scale was attested, data were submitted to the

convergent and discriminant validity tests. For this purpose, we used Average Variance

Extracted [AVE] measure of each dimension, which was compared with the square of the

correlation with the other dimensions. All values for AVE were greater than .50,

indicating a significant explanatory power of the items on their respective size and of

dimensions on the entrepreneurial alertness construct [MARÔCO, 2010]. Furthermore,

measures for each dimension were superior to the square of the correlation with the other

dimensions, indicating that the items have an explanatory power of the dimension higher

than the other dimensions of the entrepreneurial alertness scale. As for the reliability of

the scale, we used the composite reliability test [CR]. All dimensions presented values

higher than .80, indicating internal consistency of items to explain the common latent

construct [FORNELL; LARCKER, 1981].

Alert Entrepreneur: Study of the Influence of Individual Characteristics

and Entrepreneurship 97

BBR, Braz. Bus. Rev. [Engl. ed., Online],

Vitória, v. 13, n. 5, Art. 4, p. 85 - 107, sep-oct. 2016 www.bbronline.com.br

4.3 HYPOTHESES TESTS AND CORRELATIONS

Once the validity and reliability of the entrepreneurial alertness scale were

obtained, based on factor loadings, the values for the scale were imputed, to thereby

proceed with the tests for analysis of results. Initially, we performed the bivariate

Pearson correlation test. The results are shown in Table 4. By analyzing the

entrepreneurial alertness construct, two relationships presented significant correlation

coefficients: the entrepreneur’s experience in years and the entrepreneur’s age. The

former presented a negative and significant relationship with the degree of

entrepreneurial alertness [r = -.28; p