Entrepreneurship and the Economic Theory of the Firm

OPEN ARCHIVE

Union Jack
Dannebrog

Entrepreneurship and the Economic Theory of the Firm

Show simple item record

dc.contributor.author Foss, Nicolai J. en_US
dc.contributor.author Klein, Peter G. en_US
dc.date.accessioned 2009-02-04T10:23:39Z
dc.date.available 2009-02-04T10:23:39Z
dc.date.issued 2004-11-02T00:00:00Z en_US
dc.identifier.isbn 8778731623 en_US
dc.identifier.uri http://hdl.handle.net/10398/6429
dc.description.abstract Although they have developed very much in isolation from each other, we argue the theory of entrepreneurship and the economic theory of the firm are closely related, and each has much to learn from the other. In particular, the notion of entrepreneurship as judgment associated with Frank Knight and some Austrian school economists aligns naturally with the theory of the firm. In this perspective, the entrepreneur needs a firm, that is, a set of alienable assets he controls, to carry out his function. We further show how this notion of judgment adds to the key themes in the modern theory of the firm (i.e., the existence, boundaries, and internal organization). In our approach, resource uses are not data, but are created as entrepreneurs envision new ways of using assets to produce goods. The entrepreneur’s decision problem is aggravated by the fact that capital assets are heterogeneous. Asset ownership facilitates experimenting entrepreneurship: Acquiring a bundle of property rights is a low cost means of carrying out commercial experimentation. In this approach, the existence of the firm may be understood in terms of limits to the market for judgment relating to novel uses of heterogeneous assets; and the boundaries of the firm, as well as aspects of internal organization, may be understood as being responsive to entrepreneurial processes of experimentation. Key words: Entrepreneurship, heterogeneous assets, judgment, ownership, firm boundaries, internal organization. JEL Codes: B53, D23, L2 en_US
dc.format.extent 28 s. en_US
dc.language eng en_US
dc.relation.ispartofseries Druid Working paper;2004-012 en_US
dc.subject.other kep en_US
dc.title Entrepreneurship and the Economic Theory of the Firm en_US
dc.type wp en_US
dc.accessionstatus modt04nov02 miel en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.department Institut for Ledelse, Politik og Filosofi en_US
dc.contributor.departmentshort LPF en_US
dc.contributor.departmentuk Department of Management, Politics & Philosophy en_US
dc.contributor.departmentukshort MPP en_US
dc.idnumber 8778731623 en_US
dc.publisher.city København en_US
dc.publisher.year 2004 en_US
dc.title.subtitle Any Gains from Trade en_US


Creative Commons License This work is licensed under a Creative Commons License.

Files Size Format View
04-12.pdf 335.6Kb PDF View/Open

This item appears in the following Collection(s)

Show simple item record