Closing the Product Utility Gap: How Tech Entrepreneurs Imagine Unknown Client Markets

Abstract

What drives the entrepreneurial imagination of unknown client markets? Based on a multi-case study of tech entrepreneurs operating out of Boston, this study examines this under-researched question. Findings suggest that tech entrepreneurs imagine unknown client markets in increasingly sophisticated ways, starting from envisioning primary users of the product, to considering multiple parallel client populations, to imagining interdependent client groups using the product in complementary ways. This evolution in thinking seems to be driven by product utility gaps - perceived gaps between the range of product uses and client constellations in which the product can create value. Importantly, at an early stage of the entrepreneurial process, these product utility gaps do not result from market feedback, but from ongoing reciprocal imagination of client markets and underutilized product value. Findings inform research on entrepreneurial imagination and opportunity idea formation, and the strategizing of business ecosystem relationships.