Beyond Hope: The Vital Role of Innovative Identity in Entrepreneurial Opportunity Recognition

Document Type : Research Paper

Authors

1 Department of Management, Graduate School of Management and Economics, Sharif University of Technology

2 Faculty of Entrepreneurship, University of Tehran

Abstract

Opportunity recognition is the starting point of the entrepreneurial process and plays a pivotal role in the formation and growth of innovative ventures. Understanding this complex process requires examining the psychological factors that influence individuals' ability to identify and exploit new opportunities. This study focuses on hope as a dimension of psychological capital, aiming to demonstrate that hope alone cannot directly enhance the ability to recognize opportunities. However, when interacting with innovative identity, its effect becomes significant. Hope, through its two key components—agency (goal-directed motivation) and pathways (the ability to find alternative routes)—provides the energy and flexibility needed to face entrepreneurial challenges. Based on the Creation and Expansion Theory and Role Identity Theory, this interaction becomes meaningful when individuals possess a stronger innovative identity, as it serves as a cognitive driver that strengthens their capacity to transform internal motivations into creative actions. Consequently, hope, as a valuable psychological factor, alongside innovative identity, plays a crucial role in enhancing entrepreneurial opportunity recognition. The data for this study were collected from 412 undergraduate students at an Iranian university and analyzed using structural equation modeling (SEM). The results indicate that while hope does not have a direct impact on opportunity recognition, its influence becomes significant when mediated by innovative identity. Innovative identity acts as a catalyst for creativity and cognitive flexibility, enabling individuals to better discover and exploit new opportunities, even when faced with challenges and obstacles. These findings contribute to the theoretical literature on entrepreneurship, highlighting that the development of psychological factors such as hope and innovative identity can be effective in designing educational programs and supportive entrepreneurship policies. On the other hand, the results of the study showed that negative emotions, such as regret over missed opportunities, can become a powerful tool for personal growth and development if managed properly. People with a stronger innovator identity are not only better able to manage these emotions, but also use them as sources of inspiration to discover creative solutions. This suggests that the process of recognizing opportunities is not a purely logical or cognitive process, but rather a complex interaction of emotional, cognitive, and identity factors. The study also showed the importance of individual differences, such as gender, in the process of recognizing opportunities. While gender differences can affect the ways in which opportunities are evaluated, these differences do not directly affect the capacity to innovate or create opportunities. This finding could be valuable for policymakers and designers of entrepreneurship education programs, as it shows that focusing on developing psychological capital and innovative identities, regardless of gender differences, can strengthen entrepreneurial capacity at different levels. Additionally, this study emphasizes the importance of creating educational and professional environments where entrepreneurs can develop their innovative identity through experience, reflection, and continuous learning, ultimately enhancing their ability to recognize novel opportunities. Finally, the research outlines its limitations and offers suggestions for future studies to explore the role of cultural, gender, and contextual factors in entrepreneurial opportunity recognition.

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References

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Journal of Entrepreneurship Development
Volume 18, Issue 4
October 2025
Pages 1-30

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