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Breaking out of the Kirznerian box: A reply to Sautet

Author

Listed:
  • Matthew McCaffrey

    (University of Manchester)

  • Nicolai J. Foss

    (Copenhagen Business School)

  • Peter G. Klein

    (Baylor University)

  • Joseph T. Salerno

    (Mises Institute)

Abstract

What is now called the judgment-based approach to entrepreneurship (JBA) has a rich pedigree in Austrian economics and continues to grow rapidly in that tradition as well as in various research fields in business and management. The JBA has also attracted some criticisms. Frédéric Sautet’s recent review essay is an example. Sautet’s main concern is that the JBA rejects Israel Kirzner’s alertness/discovery approach which, in Sautet’s view, provides a more compelling basis for theorizing. Unfortunately, we do not find Sautet’s criticisms of the JBA convincing. They frequently ignore our arguments about entrepreneurial judgment and its manifestation in the business firm, fail to address our criticisms of the alertness/discovery approach, and are rooted in a flawed understanding of the history of economic thought.

Suggested Citation

  • Matthew McCaffrey & Nicolai J. Foss & Peter G. Klein & Joseph T. Salerno, 2023. "Breaking out of the Kirznerian box: A reply to Sautet," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 36(3), pages 1-21, September.
    • Handle: RePEc:kap:revaec:v:36:y:2023:i:3:d:10.1007_s11138-021-00552-x
    DOI: 10.1007/s11138-021-00552-x
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    References listed on IDEAS

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    1. Israel M. Kirzner & Comment by Gordon Tullock, 1999. "Mises and His Understanding of the Capitalist System," Cato Journal, Cato Journal, Cato Institute, vol. 19(2), pages 215-232, Fall.
    2. Matthew McCaffrey, 2016. "Good Judgment, Good Luck: Frank Fetter’s Neglected Theory of Entrepreneurship," Review of Political Economy, Taylor & Francis Journals, vol. 28(4), pages 504-522, October.
    3. Frederic Sautet, 2018. "The battle for the essence of entrepreneurship," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 31(1), pages 123-139, March.
    4. Markus C Becker & Thorbjørn Knudsen & Roger Koppl & Jack Birner & Peter Kurrild-Klitgaard, 2003. "The Entrepreneur At A Crucial Juncture In Schumpeter’S Work: Schumpeter’S 1928 Handbook Entry Entrepreneur," Advances in Austrian Economics, in: Austrian Economics and Entrepreneurial Studies, pages 199-233, Emerald Group Publishing Limited.
    5. McCaffrey, Matthew & Salerno, Joseph T., 2014. "Böhm-Bawerk’S Approach To Entrepreneurship," Journal of the History of Economic Thought, Cambridge University Press, vol. 36(4), pages 435-454, December.
    6. Nicolai J. Foss & Peter G. Klein, 2010. "Alertness, Action, and the Antecedents of Entrepreneurship," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 25(Spring 20), pages 145-164.
    7. Foss, Nicolai J. & Klein, Peter G., 2015. "Introduction to a forum on the judgment-based approach to entrepreneurship: accomplishments, challenges, new directions," Journal of Institutional Economics, Cambridge University Press, vol. 11(3), pages 585-599, September.
    8. Dolores Tremewan Martin, 1979. "Alternative Views of Mengerian Entrepreneurship," History of Political Economy, Duke University Press, vol. 11(2), pages 271-285, Summer.
    9. Israel M. Kirzner, 1962. "Rational Action and Economic Theory," Journal of Political Economy, University of Chicago Press, vol. 70(4), pages 380-380.
    10. Peter Klein & Per Bylund, 2014. "The place of Austrian economics in contemporary entrepreneurship research," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 27(3), pages 259-279, September.
    11. Salerno, Joseph T, 1993. "Mises and Hayek Dehomogenized: Review Essay," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 6(2), pages 113-146.
    12. Markus C Becker & Thorbjørn Knudsen, 2003. "The Entrepreneur At A Crucial Juncture In Schumpeter’S Work: Schumpeter’S 1928 Handbook Entry Entrepreneur," Advances in Austrian Economics, in: Austrian Economics and Entrepreneurial Studies, pages 199-233, Emerald Group Publishing Limited.
    13. Matthew McCaffrey, 2013. "Conflicting Views of the Entrepreneur in Turn-of-the-Century Vienna," History of Economics Review, Taylor & Francis Journals, vol. 58(1), pages 27-43, June.
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    1. Dorobat, Carmen-Elena & McCaffrey, Matthew & Topan, Mihai Vladimir, 2024. "Exploring the microfoundations of hybridity: A judgment-based approach," Journal of Business Venturing, Elsevier, vol. 39(4).

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