The effects of network reliance on opportunity recognition: A moderated mediation model of knowledge acquisition and entrepreneurial orientation

•Entrepreneurs' opportunity recognition is investigated through moderated mediation.•Survey data from 278 startup managers in South Korea is collected.•Hierarchical regression analysis and a bootstrapping analysis are used.•Mediation effect of knowledge acquisition is confirmed.•Moderation effect of entrepreneurial orientation is validated.

Opportunity recognition is one of the most important aspects of entrepreneurship. It is particularly crucial for new enterprises, as the identification of opportunities is an indispensable initial step for entrepreneurial activities. This study investigates the internal mechanism through which network reliance affects opportunity recognition. To reveal this internal mechanism, we propose a moderated mediation model of knowledge acquisition and entrepreneurial orientation. Using survey data from 278 startup managers in South Korea, hierarchical regression analysis and bootstrapping analysis are used to investigate mediation and moderation effects. The results show that knowledge acquisition positively mediates the relationship between network reliance and opportunity recognition. Moreover, entrepreneurial orientation negatively moderates not only the relationship between knowledge acquisition and opportunity recognition, but also the overall mediation model. This demonstrates that low entrepreneurial orientation individuals recognize opportunities better when they have accumulated enough business knowledge. Based on these findings, we conclude that opportunity recognition may be achieved more effectively through the complex process of networking, knowledge acquisition, and entrepreneurial orientation.