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Owners, Managers, and Entrepreneurship in The Corporate Firm

Listed author(s):
  • Ioannides Stavros

    (Panteion University)

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    The atemporal character of Kirzners notion of alertness and discovery, and his insistence that entrepreneurship is independent of factor ownership have attracted many criticisms from within the Austrian camp. However, it is precisely these elements of his theory of entrepreneurship that offer important insights for the analysis of the relation between shareholders and management in the modern corporation. First of all, the Kirznerian perspective allows us to view both groups as entrepreneurial. Secondly, and contrary to modern agency theory and the Rothbardian strand of Austrian economics, it highlights the entrepreneurial role of management in introducing innovation. Finally, we argue that the Kirznerian perspective on the division of the entrepreneurial roles in the corporate firm shares some important ideas with the resource based view of the firm.Le caractère atemporel des notions kirzneriennes de vigilance et de découverte et linsistance que met Kirzner à séparer lactivité entrepreneuriale de la propriété des facteurs lui ont valu de nombreuses critiques de la part des économistes autrichiens. Cependant, ce sont précisément ces éléments de sa théorie de lentrepreneur qui éclairent de manière importante lanalyse de la relation entre actionnaires et gestionnaires dans lentreprise moderne. Premièrement, la perspective kirznerienne nous permet de considérer que les deux groupes participent de lactivité entrepreneuriale. Deuxièmement, et contrairement à la théorie moderne de lagence et la variante rothbardienne de léconomie autrichienne, elle met laccent sur le rôle entrepreneurial de la gestion dans lémergence dinnovations. Enfin, nous suggérons que la perspective kirznerienne à propos du partage des rôles entrepreneuriaux dans la firme présente des analogies importantes avec la théorie de la firme vue comme un vivier de ressources.

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    Article provided by De Gruyter in its journal Journal des Economistes et des Etudes Humaines.

    Volume (Year): 12 (2002)
    Issue (Month): 1 (March)
    Pages: 1-14

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    Handle: RePEc:bpj:jeehcn:v:12:y:2002:i:1:n:9
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    1. Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 301-325, June.
    2. Stavros Ioannides, 2002. "Entrepreneurship, Contracts and the Corporate Firm: Austrian Insights on the Contractual Nature of Business Organization," Chapters,in: Entrepreneurship and the Firm, chapter 7 Edward Elgar Publishing.
    3. Witt, Ulrich, 1998. "Imagination and leadership - The neglected dimension of an evolutionary theory of the firm," Journal of Economic Behavior & Organization, Elsevier, vol. 35(2), pages 161-177, April.
    4. Israel M. Kirzner, 1997. "Entrepreneurial Discovery and the Competitive Market Process: An Austrian Approach," Journal of Economic Literature, American Economic Association, vol. 35(1), pages 60-85, March.
    5. Fama, Eugene F, 1980. "Agency Problems and the Theory of the Firm," Journal of Political Economy, University of Chicago Press, vol. 88(2), pages 288-307, April.
    6. Witt, Ulrich, 2000. "Changing Cognitive Frames--Changing Organizational Forms: An Entrepreneurial Theory of Organizational Development," Industrial and Corporate Change, Oxford University Press, vol. 9(4), pages 733-755, December.
    7. George J. Stigler, 1961. "The Economics of Information," Journal of Political Economy, University of Chicago Press, vol. 69, pages 213-213.
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