Invisible opportunities and irreversible trends

Small firms are always vulnerable to complex technological change that may render their existing business model obsolete. This paper emphasises the need to understand how the Internet's ubiquitous World Wide Web is impacting on their operating environments. Consideration of evolutionary theory and the absorptive capacity construct provides the foundation for discussion of how learning and discovery take place within individuals, firms and the environments that interact with. Small firms, we argue, face difficulties identifying what routines and competencies are best aligned with the seemingly invisible dominant designs that support pursuit of new enterprise in web-impacted environments. We argue that such difficulties largely relate to an inability to acquire external knowledge and the subsequent reliance on existing internal selection processes that may reinforce the known, at the expense of the unknown. The paper concludes with consideration as to how managers can overcome the expected difficulties through the development of internal routines that support the continual search, evaluation and acquisition of specific external knowledge.