IDEAS home Printed from https://ideas.repec.org/a/taf/indinn/v10y2003i4p493-514.html
   My bibliography  Save this article

An Evolutionary Approach to the Theory of Entrepreneurship

Author

Listed:
  • Thomas Grebel
  • Andreas Pyka
  • Horst Hanusch

Abstract

An economic model featuring entrepreneurial behaviour is built and tested using simulation techniques. The building blocks of our model are bounded-rational actors with specific sets of endowments: ""entrepreneurial spirit'', human capital, and venture capital. The entrepreneurial behaviour to found a firm is triggered by the individuals' endowments, their social network, and the evaluation of the economic situation. Bandwagon effects occur when high growth rates in emerging markets increase firm entries and firm entries in return increase growth rates until competition unfolds its selective power. The firm's survivability is determined by its founders' endowments and its competitiveness. Whether actors are right or wrong in evaluating their economic situation and their consequent decisions is proven ex post . Thus, there will be winners and losers in this economic system.

Suggested Citation

  • Thomas Grebel & Andreas Pyka & Horst Hanusch, 2003. "An Evolutionary Approach to the Theory of Entrepreneurship," Industry and Innovation, Taylor & Francis Journals, vol. 10(4), pages 493-514.
  • Handle: RePEc:taf:indinn:v:10:y:2003:i:4:p:493-514
    DOI: 10.1080/1366271032000163702
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/1366271032000163702
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Geoffrey M. Hodgson, 1998. "The Approach of Institutional Economics," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 166-192, March.
    2. Foss, Nicolai Juul, 1993. "Theories of the Firm: Contractual and Competence Perspectives," Journal of Evolutionary Economics, Springer, vol. 3(2), pages 127-144, May.
    3. Coase, R. H., 1990. "The Firm, the Market, and the Law," University of Chicago Press Economics Books, University of Chicago Press, number 9780226111018, Febrero.
    4. Demsetz, Harold, 1988. "The Theory of the Firm Revisited," Journal of Law, Economics, and Organization, Oxford University Press, vol. 4(1), pages 141-161, Spring.
    5. Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-846, September.
    6. Kirzner, Israel M, 1999. "Creativity and/or Alertness: A Reconsideration of the Schumpeterian Entrepreneur," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 11(1-2), pages 5-17.
    7. Herbert A. Simon & Massimo Egidi & Ricardo Viale & Robin Marris, 1992. "Economics, Bounded Rationality and the Cognitive Revolution," Books, Edward Elgar Publishing, number 409.
    8. Gary S. Becker, 1975. "Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education, Second Edition," NBER Books, National Bureau of Economic Research, Inc, number beck75-1, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Audretsch, David B & Meijaard, Joris & Stam, Erik, 2005. "Renascent Men or Entrepreneurship as a One-Night Stand: Entrepreneurial Intentions Subsequent to Firm Exit," CEPR Discussion Papers 5342, C.E.P.R. Discussion Papers.
    2. Fabiola Baltar & Sonia de Coulon, 2014. "Dynamics Of The Entrepreneurial Process: The Innovative Entrepreneur And The Strategic Decisions," Review of Business and Finance Studies, The Institute for Business and Finance Research, vol. 5(1), pages 69-81.
    3. Andreas Pyka & Thomas Grebel, 2006. "Agent-Based Modelling — A Methodology for the Analysis of Qualitative Development Processes," Contributions to Economics, in: Francesco C. Billari & Thomas Fent & Alexia Prskawetz & Jürgen Scheffran (ed.), Agent-Based Computational Modelling, pages 17-35, Springer.
    4. Baltar, Fabiola & de Coulon, Sonia, 2014. "Dynamics of the entrepreneurial process: the innovative entrepreneur and the strategic decisions," Nülan. Deposited Documents 1878, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    5. Horst Hanusch & Andreas Pyka, 2007. "Principles of Neo-Schumpeterian Economics," Cambridge Journal of Economics, Oxford University Press, vol. 31(2), pages 275-289, March.
    6. Duschl, Matthias & Schimke, Antje & Brenner, Thomas & Luxen, Dennis, 2011. "Firm growth and the spatial impact of geolocated external factors: Empirical evidence for German manufacturing firms," Working Paper Series in Economics 36, Karlsruhe Institute of Technology (KIT), Department of Economics and Management.
    7. Prescott C. Ensign & Steve Farlow, 2016. "Serial entrepreneurs in the Waterloo ecosystem," Journal of Innovation and Entrepreneurship, Springer, vol. 5(1), pages 1-15, December.
    8. Fusari, Angelo, 2016. "A New Economics for Modern Dynamic Economies," MPRA Paper 74008, University Library of Munich, Germany, revised 2016.
    9. Fernhaber, Stephanie A. & Stark, Alyssa Y., 2019. "Biomimicry: New insights for entrepreneurship scholarship," Journal of Business Venturing Insights, Elsevier, vol. 12(C).
    10. Anthony Endres & Christine Woods, 2010. "Schumpeter’s ‘conduct model of the dynamic entrepreneur’: scope and distinctiveness," Journal of Evolutionary Economics, Springer, vol. 20(4), pages 583-607, August.
    11. A. Pyka & G. Fagiolo, 2007. "Agent-based Modelling: A Methodology for Neo-Schumpetarian Economics," Chapters, in: Horst Hanusch & Andreas Pyka (ed.), Elgar Companion to Neo-Schumpeterian Economics, chapter 29, Edward Elgar Publishing.
    12. Isabel Salavisa & Pedro Videira & Filipa Santos, 2009. "Entrepreneurship and social networks in IT sectors: the case of the software industry in Portugal," Journal of Innovation Economics, De Boeck Université, vol. 0(2), pages 15-39.
    13. Matthias Duschl & Antje Schimke & Thomas Brenner & Dennis Luxen, 2011. "Firm Growth and the Spatial Impact of Geolocated External Factors – Empirical Evidence for German Manufacturing Firms," Working Papers on Innovation and Space 2011-03, Philipps University Marburg, Department of Geography.
    14. Michael Peneder, 2009. "The Meaning of Entrepreneurship: A Modular Concept," Journal of Industry, Competition and Trade, Springer, vol. 9(2), pages 77-99, June.
    15. Horst Hanusch & Andreas Pyka, 2006. "Manifesto for Comprehensive Neo-Schumpeterian Economics," Discussion Paper Series 289, Universitaet Augsburg, Institute for Economics.
    16. Karl Wennberg & Karin Hellerstedt, 2011. "Evolution of knowledge intensive firms: a sociogeographic demand side perspective," ERSA conference papers ersa10p1585, European Regional Science Association.
    17. Andreas Pyka & Uwe Cantner & Alfred Greiner & Thomas Kuhn (ed.), 2009. "Recent Advances in Neo-Schumpeterian Economics," Books, Edward Elgar Publishing, number 12982.
    18. Chih-Hai Yang & Hui-Lin Lin & Hsiao-Yun Li, 2010. "Do R&D Spinoffs have Higher R&D Productivity? Evidence from Taiwanese Electronics Firms," Industry and Innovation, Taylor & Francis Journals, vol. 17(3), pages 285-307.
    19. Atkinson, Robert D. & Hackler, Darrene, 2010. "Economic Doctrines and Approaches to Climate Change Policy," MPRA Paper 29718, University Library of Munich, Germany.
    20. Thomas Grebel & Horst Hanusch & Esther Merey, 2004. "Schumpeterian Dynamics and Financial Market Anomalies," Discussion Paper Series 264, Universitaet Augsburg, Institute for Economics.
    21. Mansura Akter & Mahfuzur Rahman & Dragana Radicic, 2019. "Women Entrepreneurship in International Trade: Bridging the Gap by Bringing Feminist Theories into Entrepreneurship and Internationalization Theories," Sustainability, MDPI, Open Access Journal, vol. 11(22), pages 1-28, November.
    22. Fusari, Angelo, 2015. "The question of the firm. Organizational forms and dimensions," MPRA Paper 74177, University Library of Munich, Germany, revised 2015.
    23. Grebel, Thomas, 2009. "Technological change: A microeconomic approach to the creation of knowledge," Structural Change and Economic Dynamics, Elsevier, vol. 20(4), pages 301-312, December.
    24. D. Hartmann & A. Arata & M. Bezerra & F.L. Pinheiro, 2019. "The network effects of NGOs on social capital and innovation of smallholder farmers. A case study in Peru," Papers in Evolutionary Economic Geography (PEEG) 1905, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2019.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fikret Adaman & Pat Devine, 2002. "A Reconsideration of the Theory of Entrepreneurship: A participatory approach," Review of Political Economy, Taylor & Francis Journals, vol. 14(3), pages 329-355.
    2. Geoffrey M. Hodgson, 2010. "Limits of Transaction Cost Analysis," Chapters, in: Peter G. Klein & Michael E. Sykuta (ed.), The Elgar Companion to Transaction Cost Economics, chapter 28, Edward Elgar Publishing.
    3. Alex Eapen & Rekha Krishnan, 2019. "Transferring Tacit Know-How: Do Opportunism Safeguards Matter for Firm Boundary Decisions?," Organization Science, INFORMS, vol. 30(4), pages 715-734, July.
    4. Anjan Ray Chaudhury, 2017. "Interpreting the Disparity in Educational Attainment among Various Socio-religious Groups in India," IIM Kozhikode Society & Management Review, , vol. 6(1), pages 73-89, January.
    5. Richard N. Langlois & Nicolai J. Foss, 1999. "Capabilities and Governance: The Rebirth of Production in the Theory of Economic Organization," Kyklos, Wiley Blackwell, vol. 52(2), pages 201-218, May.
    6. Nicolai J. Foss, 1996. "Capabilities and the Theory of the Firm," Revue d'Économie Industrielle, Programme National Persée, vol. 77(1), pages 7-28.
    7. Nicolaï Foss & Nils Stieglitz, 2012. "Modern Resource-based Theory(ies)," Chapters, in: Michael Dietrich & Jackie Krafft (ed.), Handbook on the Economics and Theory of the Firm, chapter 20, Edward Elgar Publishing.
    8. Peter G. Klein & Michael E. Sykuta (ed.), 2010. "The Elgar Companion to Transaction Cost Economics," Books, Edward Elgar Publishing, number 4136.
    9. Alberto Battistini, 2008. "Micro-Founded Institutions and Macro-Founded Individuals: The Dual Nature of Profit," Department of Economics University of Siena 550, Department of Economics, University of Siena.
    10. Nicolai J. Foss, 1999. "Understanding Leadership A Coordination Theory," DRUID Working Papers 99-3, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    11. Frohwein, Torsten & Burr, Wolfgang, 2011. "Emerging issues in the further development of the resource-based view of the firm," Research Papers on Innovation, Services and Technology 1/2011, University of Stuttgart, Institute of Business Administration, Department I - Institute of Research & Development and Innovation Management.
    12. Hodgson, Geoffrey M., 1998. "Competence and contract in the theory of the firm," Journal of Economic Behavior & Organization, Elsevier, vol. 35(2), pages 179-201, April.
    13. John Finch & Nicola Dinnei, 2001. "Capturing Knightian Advantages of Large Business Organisations Through Group Decision-making Processes," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(3), pages 379-403.
    14. Amini, Chiara & Nivorozhkin, Eugene, 2015. "The urban–rural divide in educational outcomes: Evidence from Russia," International Journal of Educational Development, Elsevier, vol. 44(C), pages 118-133.
    15. Nicolai J. Foss, 1996. "Austrian and Post-Marshallian EconomicsThe Bridging Work of George Richardson," DRUID Working Papers 96-4, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    16. Martina Mysikova & Jiri Vecernik, 2015. "Returns to education in transition and advanced European countries: The role of an expansion of higher education," Investigaciones de Economía de la Educación volume 10, in: Marta Rahona López & Jennifer Graves (ed.), Investigaciones de Economía de la Educación 10, edition 1, volume 10, chapter 44, pages 865-886, Asociación de Economía de la Educación.
    17. Fritz Rahmeyer, 2006. "From a Routine-Based to a Knowledge-Based View: Towards an Evolutionary Theory of the Firm," Discussion Paper Series 283, Universitaet Augsburg, Institute for Economics.
    18. Baarda, James R., 2000. "A Transgenic Theory Of The Firm," Transitions in Agbiotech: Economics of Strategy and Policy, June 24-25, 1999, Washington, D.C. 25994, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    19. Azuma, Yoshiaki, 2010. "How career changes affect technological breakthrough - Reconsidering the prolonged slump of the Japanese economy -," MPRA Paper 62582, University Library of Munich, Germany.
    20. Dimitris Pavlopoulos & Ruud Muffels & Jeroen K. Vermunt, 2009. "Training and Low‐pay Mobility: The Case of the UK and the Netherlands," LABOUR, CEIS, vol. 23(s1), pages 37-59, March.

    More about this item

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:indinn:v:10:y:2003:i:4:p:493-514. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.tandfonline.com/CIAI20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CIAI20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.