Hostname: page-component-8448b6f56d-c47g7 Total loading time: 0 Render date: 2024-04-18T02:32:09.860Z Has data issue: false hasContentIssue false
  • English
  • Français

Introduction to a forum on the judgment-based approach to entrepreneurship: accomplishments, challenges, new directions

Published online by Cambridge University Press:  29 April 2015

NICOLAI J. FOSS  and
PETER G. KLEIN
NICOLAI J. FOSS*
Affiliation:
Copenhagen Business School, Department of Strategic Management and Globalization, Copenhagen, Denmark, and Norwegian School of Economics, Department of Strategy and Management, Bergen, Norway
PETER G. KLEIN*
Affiliation:
University of Missouri, Division of Applied Social Sciences, Columbia, Missouri, USA, and Norwegian School of Economics, Department of Strategy and Management, Bergen, Norway
*
*Email: njf.smg@cbs.dk
**Email: pklein@missouri.edu
Get access Rights & Permissions [Opens in a new window]

Abstract

Over the last three decades entrepreneurship has become a hot topic in economics and management. Much of the entrepreneurship research literature has built upon insights of economists such as Schumpeter, Knight, and Kirzner, each of whom has inspired a distinct strand of entrepreneurship theory and application. Schumpeterian innovation and Kirznerian alertness are the best-known concepts of entrepreneurship, but a newer research stream is building on Knight's idea of entrepreneurship as judgmental decision-making under uncertainty. What we call the judgment-based view models entrepreneurs as owning, controlling, and combining heterogeneous assets, which differ in their attributes, and deploying these assets within a firm to produce goods and services in anticipation of economic profit. This Forum presents three papers that develop, extend, and challenge the judgment-based view of entrepreneurship, focusing on the foundations of judgment, the processes of entrepreneurial resource assembly, and the relationship between the judgment-based view and other theories of economic organization.

Type
A forum on the judgment-based approach to entrepreneurship
Information
Journal of Institutional Economics , Volume 11 , Issue 3 , September 2015 , pp. 585 - 599
Copyright
Copyright © Millennium Economics Ltd 2015 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Acs, Z. and Audretsch, D. B. (1990), Innovation and Small Firms, Cambridge, MA: MIT Press.Google Scholar
Acs, Z. J. and Audretsch, D. B. (2003), Handbook of Entrepreneurship Research: An Interdisciplinary Survey and Introduction, New York: Springer.Google Scholar
Aghion, P. and Howitt, P. (1992), ‘A model of growth through creative destruction’, Econometrica, 60 (2): 323–351.CrossRefGoogle Scholar
Alvarez, S. A. and Barney, J. B. (2004), ‘Organizing rent generation and appropriation: Toward a theory of the entrepreneurial firm’, Journal of Business Venturing, 19: 621–635.CrossRefGoogle Scholar
Alvarez, S. A. and Barney, J. B. (2007), ‘Discovery and creation: Alternative theories of entrepreneurial action’, Strategic Entrepreneurship Journal, 1 (1–2): 11–26.Google Scholar
Baker, T. and Nelson, R. E. (2005), ‘Creating Something from Nothing: Resource Construction through Entrepreneurial Bricolage’, Administrative Science Quarterly, 50 (3): 329–366.Google Scholar
Baumol, W. J. (1968), ‘Entrepreneurship in economic theory’, American Economic Review, 58 (2): 64–71.Google Scholar
Baumol, W. J. (1993), Entrepreneurship, Management and the Structure of Pay-Offs, Cambridge, MA: MIT Press.Google Scholar
Baumol, W. J. (2010), The Microtheory of Innovative Entrepreneurship, Princeton, NJ: Princeton University Press.Google Scholar
Bewley, T. F. (1986), ‘Knightian Decision Theory: Part I’, Cowles Foundation Discussion Paper No. 807.Google Scholar
Bewley, T. F. (1989), ‘Market Innovation and Entrepreneurship: A Knightian View’, Cowles Foundation Discussion Paper No. 905.Google Scholar
Bhidé, A. (2010), A Call for Judgment, New York: Oxford University Press.Google Scholar
Bianchi, M. and Henrekson, M. (2005), ‘Is neoclassical economics still entrepreneurless?’, Kyklos, 58: 353–377.Google Scholar
Cantillon, R. (1755), Essai sur la Nature de Commerce en Géneral, in Higgs, H. (ed.), London: Macmillan.Google Scholar
Casson, M. C. (1982), The Entrepreneur: An Economic Theory, 2nd edn, Aldershot, UK: Edward Elgar.Google Scholar
D’Aveni, R. A. (1994), Hypercompetition, New York: Free Press.Google Scholar
Dane, E. and Pratt, M. G. (2007), ‘Exploring intuition and its role in managerial decision making’, Academy of Management Review, 32 (1): 33–54.Google Scholar
Davidsson, P. and Tonelli, M. (2013), ‘Killing Our Darling: Why We Need to Let Go of the Entrepreneurial Opportunity Construct’, in Davidsson, P. (ed.), Conference Proceedings: Australia Centre for Entrepreneurship (ACE) Research Exchange Conference 2013, Australia Centre for Entrepreneurship, Queensland University of Technology, Brisbane, QLD.Google Scholar
De Clercq, D., Castañer, X., and Belausteguigoitia, I. (2007), ‘The secrets of intrapreneurship’, European Business Forum, 31: 40–45.Google Scholar
Demsetz, H. (1983), ‘The Neglect of the Entrepreneur’, in Ronen, J., ed., Entrepreneurship, Lexington, MA: Lexington Press, pp. 271–280.Google Scholar
Dimov, D. (2011), ‘Grappling with the unbearable elusiveness of entrepreneurial opportunities’, Entrepreneurship Theory and Practice, 35: 57–81.Google Scholar
Foss, N. J. and Klein, P. G. (2012), Organizing Entrepreneurial Judgment: A New Approach to the Firm, Cambridge: Cambridge University Press.Google Scholar
Foss, K., Foss, N. J., Klein, P. G., and Klein, S. K. (2007a), ‘The entrepreneurial organization of heterogeneous capital’, Journal of Management Studies, 44 (7): 1165–1186.Google Scholar
Foss, K., Foss, N. J., and Klein, P. G. (2007b), ‘Original and derived judgment: An entrepreneurial theory of economic organization’, Organization Studies, 28 (12): 1893–1912.CrossRefGoogle Scholar
Foss, N. J. and Klein, P. G. (2005),‘Entrepreneurship and the Economic Theory of the Firm: Any Gains from Trade?’, in Agarwal, R., Alvarez, S. A., and Sorenson, O. (eds.), Handbook of Entrepreneurship Research: Disciplinary Perspectives, Dordrecht: Springer.Google Scholar
Foss, N., Klein, P. G., Lien, L. B., and Zenger, T. R. (2015), ‘The Buck Stops Here: The Role of Ownership in Strategic Management Research’, Working paper, Copenhagen Business School.Google Scholar
Friedman, M. and Savage, L. J. (1948), ‘The Utility Analysis of Choices Involving Risk’, Journal of Political Economy, 56 (4): 279–304.Google Scholar
Garud, R. and Karnøe, P. (2003), ‘Bricolage versus breakthrough: Distributed and embedded agency in technology entrepreneurship’, Research Policy, 32: 277–300.Google Scholar
Glaser, E. L., Kerr, S. P. and Kerr, W. R. (2015), ‘Entrepreneurship and Urban Growth: An Empirical Assessment with Historical Mines’, Review of Economics and Statistics, forthcoming.Google Scholar
Godley, A. C. and Casson, M. C. (2014), ‘“Doctor, doctor. . .” entrepreneurial diagnosis and market making’, published online. doi:10.1017/S1744137414000162.CrossRefGoogle Scholar
Gompers, P. and Lerner, J. (2001), ‘The Venture Capital Revolution’, Journal of Economic Perspectives, 15 (2): 45–168.CrossRefGoogle Scholar
Hallberg, N. L. (2014), ‘Uncertainty, judgment, and the theory of the firm’, published online. doi:10.1017/S1744137414000381.Google Scholar
Hamilton, B. (2000), ‘Does Entrepreneurship Pay? An Empirical Analysis of the Returns of Self-employment’, Journal of Political Economy, 108: 604–631.Google Scholar
Hart, O. D. (1995), Firms, Contracts, and Financial Structure, Oxford: The Clarendon Press.Google Scholar
Hastie, R. (2001), ‘Problems for Judgment and Decision Making’, Annual Review of Psychology, 52: 653–683.Google Scholar
Hayek, F. A. (1945), ‘The Use of Knowledge in Society’, in Hayek (ed.), Individualism and Economic Order, Chicago: Chicago University Press.Google Scholar
Holcombe, T. R., Holmes, R. M., Klein, P. G., and Duane, R. Ireland (2014), ‘Motivated Reasoning in Judgmental Decision-Making and Entrepreneurial Action: Toward a Behavioral Model’, Working Paper, Farmer School of Business, Miami University.Google Scholar
Huang, L. (2012), ‘A Theory of Investor Gut Feel: A Test of the Impact of Gut Feel on Entre-preneurial Investment Decisions’, PhD dissertation, University of California, Irvine.Google Scholar
Hülsmann, J. G. (1997), ‘Knowledge, judgment, and the use of property’, Review of Austrian Economics, 10 (1): 23–48.Google Scholar
Kihlstrom, R. E. and Laffont, J.J. (1979), ‘A General Equilibrium Entrepreneurial Theory of Firm Formation Based on Risk Aversion’, Journal of Political Economy, 87 (4): 719–748.CrossRefGoogle Scholar
Kirzner, I. M. (1973), Competition and Entrepreneurship, Chicago: University of Chicago Press.Google Scholar
Kirzner, I. M. (1997), ‘Entrepreneurial discovery and the competitive market process: An austrian approach’, Journal of Economic Literature, 35: 60–85.Google Scholar
Klein, P. G. (2008), ‘Opportunity discovery, entrepreneurial action, and economic organization’, Strategic Entrepreneurship Journal, 2: 175–190.Google Scholar
Klein, P. G. and , P. L. (2014), ‘The Place of Austrian Economics in Contemporary Entrepreneurship Research’, Review of Austrian Economics, 27 (3): 259–279.CrossRefGoogle Scholar
Knight, F. H. (1921), Risk, Uncertainty, and Profit, New York: August M. Kelley.Google Scholar
Lachmann, L. M. (1956), Capital and Its Structure, Kansas City: Sheed Andrews and McMeel.Google Scholar
Langlois, R. N. (2007), ‘The entrepreneurial theory of the firm and the theory of the entrepreneurial firm’, Journal of Management Studies, 44 (7): 1107–1124.Google Scholar
Langlois, R. N. and Cosgel, M. (1993), ‘Frank knight on risk, uncertainty, and the firm: A new interpretation’, Economic Inquiry, 31: 456–465.Google Scholar
Lazear, E. P. (2004), ‘Balanced skills and entrepreneurship’, American Economic Review, 94 (2): 208–211.CrossRefGoogle Scholar
Lewin, P. (2015), ‘Entrepreneurial opportunity as the potential to create value’, Review of Austrian Economics, 28 (1): 1–15.Google Scholar
Loasby, B. J. (1982), ‘The entrepreneur in economic theory’, Scottish Journal of Political Economy, 29 (3): 2–23.CrossRefGoogle Scholar
Mathews, J. (2006), Strategizing, Disequilibrium, and Profit, Stanford: Stanford University Press.Google Scholar
McCaffrey, M. (2015), ‘Economic Policy and Entrepreneurship: Alertness or Judgment?’, in Bylund, P. L. and Howden, D. (eds.), The Next Generation of Austrian Economists: Essays in Honor of Joseph T. Salerno, Auburn, AL: Mises Institute.Google Scholar
McCaffrey, M. and Salerno, J. T. (2014), ‘Böhm-Bawerk's Approach to Entrepreneurship’, Journal of the History of Economic Thought, 36 (4): 435–454.Google Scholar
McMullen, J. S. (2013), ‘Entrepreneurial judgment as empathic accuracy: A sequential decision making approach to entrepreneurial action’, published online. DOI:10.1017/S1744137413000386.Google Scholar
McMullen, J. and Dimov, D. (2013), ‘Time and the entrepreneurial journey: The problems and promise of studying entrepreneurship as a process’, Journal of Management Studies, 50 (8): 1481–1512.CrossRefGoogle Scholar
McMullen, J. and Shepherd, D. A. (2006), ‘Entrepreneurial action and the role of uncertainty in the theory of the entrepreneur’, Academy of Management Review, 31 (1): 132–152.Google Scholar
Menger, C. (1871), Principles of Economics, New York: New York University Press, 1985.Google Scholar
Mises, L. von. (1949), Human Action: A Treatise on Economics, New Haven: Yale University Press. (Scholars Edition: Auburn, AL, 1998.)Google Scholar
Newell, A. and Simon, H. A. (1972), Human Problem Solving, Englewood Cliffs, NJ: Prentice Hall.Google Scholar
Pacheco-de-Almeida, G. (2010), ‘Erosion, time compression, and self-displacement of leaders in hypercompetitive environments’, Strategic Management Journal, 31: 1498–1526.Google Scholar
Packard, M. C., Clark, B. R., and Klein, P. G. (2015), ‘Recursive Judgment, Transitional Uncertainty, and the Entrepreneurial Process’, Working paper, Trulaske College of Business, University of Missouri.Google Scholar
Parker, S. C. (2004), The Economics of Self-employment and Entrepreneurship, Cambridge: Cambridge University Press.Google Scholar
Salerno, J. T. (2008), ‘The entrepreneur: Real and imagined’, Quarterly Journal of Austrian Economics, 11 (3): 188–207.Google Scholar
Sarasvathy, S. D. (2008), Effectuation: Elements of Entrepreneurial Expertise, Northampton: Edward Elgar Publishing.Google Scholar
Sarasvathy, S. D. and Dew, N. (2013), ‘Without judgment: An empirically-based entrepreneurial theory of the firm’, Review of Austrian Economics, 26: 277–296.Google Scholar
Say, J. B. (1803), A Treatise on Political Economy, or the Production, Distribution and Consumption of Wealth, Prinsep, C. R. and Biddle, Clement C., trans., Philadelphia: Claxton, Remsen & Haffelfinger, 1895.Google Scholar
Schultz, T. W. (1980), ‘Investment in entrepreneurial ability’, Scandinavian Journal of Economics, 82 (4): 437–448.Google Scholar
Schumpeter, J. A. (1911), The Theory of Economic Development, Cambridge, MA: Harvard University Press.Google Scholar
Schumpeter, J. A. (1942), Capitalism, Socialism, and Democracy, New York: Harper and Row.Google Scholar
Shackle, G. L. S. (1972), Epistemics and Economics, Cambridge: Cambridge University Press.Google Scholar
Shane, S. (2003), A General Theory of Entrepreneurship, Cheltenham: Edward Elgar.Google Scholar
Shane, S. (2012), ‘Reflections on the 2010 AMR decade award: Delivering on the promise of entrepreneurship as a field of research’, Academy of Management Review, 37 (1): 10–20.Google Scholar
Shane, S. and Venkataraman, S. (2000), ‘The promise of entrepreneurship as a field of research’, Academy of Management Review, 25: 217–226.Google Scholar
Williamson, O. E. (1985), The Economic Institutions of Capitalism, New York: Free Press.Google Scholar