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Without judgment: An empirically-based entrepreneurial theory of the firm

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  • Saras D. Sarasvathy

    (University of Virginia)

  • Nicholas Dew

    (1 University Circle)

Abstract

Austrian ideas about the firm have grown rather naturally out of the central body of Austrian thought with its focus on entrepreneurship, subjectivism and market processes. In this paper we critically evaluate some Austrian ideas on the firm, with particular attention to the concept of entrepreneurial judgment. We then describe recent empirical work in entrepreneurship that has identified key elements of what might reside inside the “black box” of entrepreneurial decision making. We conclude that expertise in this type of decision making embodies procedural knowledge that is adaptive in the absence of substantive knowledge, i.e. without judgment.

Suggested Citation

  • Saras D. Sarasvathy & Nicholas Dew, 2013. "Without judgment: An empirically-based entrepreneurial theory of the firm," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 26(3), pages 277-296, September.
    • Handle: RePEc:kap:revaec:v:26:y:2013:i:3:d:10.1007_s11138-011-0170-4
    DOI: 10.1007/s11138-011-0170-4
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