Within entrepreneurship research there is a growing interest in the nexus of opportunities and individuals. While intuitively appealing only a part of this interaction has been studied empirically. Empirical studies have investigated how the opportunities identified and exploited by individuals are shaped by prior knowledge and modes of learning, or the different paths followed in opportunity recognition processes. In all these cases the focus is on how individual differences lead to differences in entrepreneurial action.

The purpose of this paper is to improve our understanding of how the interaction between individual differences and the opportunity affects entrepreneurial action. We do that by empirically investigating how a particular differentiation strategy in new technology-based ventures is dependent on the interaction between prior knowledge of the founders and the characteristics of the sector they are entering.