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Kirznerian Entrepreneurship and The Nature of The Firm


  • Langlois Richard N.

    (University of Connecticut)


The paper argues that Israel Kirzners theory of entrepreneurship has been influential on a number of related dynamic theories of organization. Kirzners theory is animated by a dual concern the process (rather than the result) of rentseeking behavior and the fundamental incompletness (rather than the mere asymmetric structure) of knowledge. Placed in a technological and institutional context, this theory points to the importance of dynamic transaction costs: the coordination costs of acting upon an innovative rent-seeking opportunity. In some contexts, this kind of cost can explain vertical integration; in other contexts, it can explain the reverse phenomenon: vertical disintegration.Cet article soutient que la théorie de lentrepreneur dIsrael Kirzner a influencé un grand nombre de théories dynamiques de lorganisation. La théorie kirznerienne est animée par un objectif double : le processus (plus que le résultat) de comportement de recherche de rente et lincomplétude fondamentale (plus que la simple structure asymétrique) de la connaissance. Replacée dans un contexte technologique et institutionnel, cette théorie souligne limportance des coûts de transaction dynamiques : les coûts de transaction liés à une opportunité dans la recherche de rente innovante. Dans certaines situations, cette catégorie de coûts peut expliquer lintégration verticale ; dans dautres, elle peut expliquer le phénomène inverse : la désintégration verticale.

Suggested Citation

  • Langlois Richard N., 2002. "Kirznerian Entrepreneurship and The Nature of The Firm," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 12(1), pages 1-11, March.
  • Handle: RePEc:bpj:jeehcn:v:12:y:2002:i:1:n:8

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    References listed on IDEAS

    1. Richard N. Langlois, 2003. "The vanishing hand: the changing dynamics of industrial capitalism," Industrial and Corporate Change, Oxford University Press, vol. 12(2), pages 351-385, April.
    2. Richard N. Langlois, 1985. "Knowledge and Rationality in the Austrian School: An Analytical Survey," Eastern Economic Journal, Eastern Economic Association, vol. 11(4), pages 309-330, Oct-Dec.
    3. Teece, David J., 1980. "Economies of scope and the scope of the enterprise," Journal of Economic Behavior & Organization, Elsevier, vol. 1(3), pages 223-247, September.
    4. Langlois, Richard N, 1998. "Personal Capitalism as Charismatic Authority: The Organizational Economics of a Weberian Concept," Industrial and Corporate Change, Oxford University Press, vol. 7(1), pages 195-213, March.
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    Cited by:

    1. Jürgen Wandel, 2011. "Business groups and competition in post-Soviet transition economies: The case of Russian “agroholdings”," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 24(4), pages 403-450, December.

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