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Making It Happen: Beyond Theories of the Firm to Theories of Firm Design

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  • Saras D. Sarasvathy

Abstract

Current theories of the firm provide no explanation for entrepreneurial success except in terms of firm success. Even when the focus is on the entrepreneur, s/he is entirely cast as a bundle of traits/behaviors or heuristics/biases that serves to explain firm performance. In this article, I suggest putting the entrepreneur center stage, adopting an instrumental view of the firm. Drawing upon the work of Simon in symbolic cognition and Lakoff in semantic cognition, I explore how we can go beyond explanations based on economic forces and evolutionary adaptation to entrepreneurial effectuation; I end with specific research questions pertaining to firm design .

Suggested Citation

  • Saras D. Sarasvathy, 2004. "Making It Happen: Beyond Theories of the Firm to Theories of Firm Design," Entrepreneurship Theory and Practice, , vol. 28(6), pages 519-531, November.
    • Handle: RePEc:sae:entthe:v:28:y:2004:i:6:p:519-531
    DOI: 10.1111/j.1540-6520.2004.00062.x
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    References listed on IDEAS

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    8. Herbert A. Simon, 1996. "The Sciences of the Artificial, 3rd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262691914, December.
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