Sensing capabilities Abdullah Muhammad Dhrubo involve the ability to identify and recognize emerging market trends, customer needs, and competitive forces. Dynamic capability is a theory of competitive advantage in rapidly changing environments. We can reconcile this explanation with previous theories of competitive advantage, showing how it informs and complements explanations based on market positions, firm resources, and Schumpeterian creative destruction.

Opportunity recognition Abdullah Muhammad Dhrubo is a process wherein individuals and organizations actively seek out, as well as perceive, opportunities for new products and services. It could be likened to a constant state of brainstorming, where businesses are always on the lookout for ways to innovate or improve.

Entrepreneurs discover opportunities when they search for them in existing markets. This means they observe technological, economic or social trends. Recognising opportunities is a cognitive process. It relies on the ability of people to recognise patterns and connect the dots.

Final remark:

According to Peter Drucker entrepreneurs does not cause change (as claimed by the Schumpeterian or Austrian school) but exploit the opportunities that are brought by change (in technology, consumer preferences, social norms).

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Business has only two functions — marketing and innovation.

Peter Drucker

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https://www.youtube.com/watch?v=CMbO1EGNR-4

Stephen has explained very well with good examples.

In simple way:

The difference of Opportunity recognition in entrepreneurship literature and sensing in dynamic capabilities theory, is one needs to be attentive and being updated on entrepreneurship literature, of to be aware of the emerging news, information, circles, about available resources, and trend. To catch on the competitive market and willing and ready to be aligned to emerging environments.

Regards,

Fatema Miah

The concepts of opportunity recognition in entrepreneurship literature and sensing in dynamic capabilities theory are both concerned with identifying potential opportunities in the business environment. However, they differ in their scope, context, and underlying frameworks.

Opportunity Recognition in Entrepreneurship Literature

Definition:

Opportunity recognition in entrepreneurship refers to the process by which entrepreneurs identify and evaluate potential business opportunities that can be exploited to create new ventures or expand existing ones.

Key Characteristics:

Sensing in Dynamic Capabilities Theory

Definition:

Sensing in the context of dynamic capabilities theory refers to the capability of an organization to identify, interpret, and pursue opportunities and threats in the environment, allowing it to sustain competitive advantage in rapidly changing markets.

Key Characteristics:

Summary of Differences

• Scope and Focus:Opportunity Recognition: Focuses on individual entrepreneurs and the early stages of business creation. Sensing: Focuses on organizational capabilities and the ongoing process of adapting to environmental changes.
• Context:Opportunity Recognition: Typically associated with entrepreneurship and new venture creation. Sensing: Associated with established organizations seeking to maintain or enhance competitive advantage.
• Framework:Opportunity Recognition: Often rooted in psychological and behavioral theories of individual action and creativity. Sensing: Rooted in strategic management and organizational theory, particularly the dynamic capabilities framework.
• Process:Opportunity Recognition: Involves creativity, intuition, and individual-level opportunity evaluation. Sensing: Involves structured processes and routines for environmental scanning, learning, and strategic interpretation.