The current study focuses on the process dynamic and the knowledge base for the Opportunity Recognition process (OpR) in entrepreneurial teams. We propose that the process of OpR can be improved using team work, leading to opportunities with higher expected economic value.

We extend Wiklund and Shepherd's (2003) study that showed a positive effect of firm’s knowledge-based resources on performance. They demonstrated that Knowledge has strong performance implications, because it increases the firm's ability to discover and exploit opportunities. We propose that effective teams work can potentially enhance Entrepreneurial Team knowledge and lead to the discovery of opportunities with higher expected values. More specifically, we examined the following team characteristics: Teams diversity in terms of education and experience (Campion et al. 1993). Task interdependence, that expresses the extent to which team members depend on each other at work (Schippers, Hartog, & Koopman, 2001). Team reflexivity that involves feedback seeking on the team processes, goals and actions, and analyzing the data for improvement (West, 1996) and task related team conflict and controversy. (West, 1990). We hypothesize that knowledge mediates the effect of team diversity, task interdependence, reflexivity, and task related conflicts on the expected economic values of the identified opportunities.