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Linking the division of labour to entrepreneurial orientation of firms: a theoretical proposal

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  • Francesco Schiavone

Abstract

The goal of this theoretical paper is to provide a framework that can support firms involved in social networks to improve their entrepreneurial orientation by adopting a simple basic principle (division of labour). Entrepreneurship does not depend only on tangible resources (such as physical assets or the financial resources of an entrepreneur) but it is widely related to the availability of individual and social (intangible) factors also. Assuming such an 'intangible view' of entrepreneurship, this theoretical proposal suggests that the division of labour implemented by a firm both internally and externally increases its human and social capital. These two factors are considered key elements in order to address and increase the entrepreneurial orientation of the firm. In the course of the paper, evidence supporting these ideas is briefly explored. This study therefore, embraces crucial ideas from the economic, sociological and industrial district theory (as division of labour and social ties to foster entrepreneurship within the network) and applies them to explain concepts of strategic management and business administration.

Suggested Citation

  • Francesco Schiavone, 2007. "Linking the division of labour to entrepreneurial orientation of firms: a theoretical proposal," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 4(2), pages 163-178.
    • Handle: RePEc:ids:ijesbu:v:4:y:2007:i:2:p:163-178
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