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Entrepreneurship, Organization Capital, and the Evolution of the Firm

In: International Trade and Economic Dynamics

Author

Listed:
  • Atsushi Oshima

    (University of Iowa)

  • B. Ravikumar

    (University of Iowa)

  • Raymond Riezman

    (University of Iowa)

Abstract

We view the entrepreneur as an agent who possesses human capital in the form of specific skills or talents. When she starts a firm, her human capital is essential to the firm and it has substantial private value. The entrepreneur transforms her human capital over time into what we call “organization capital.” This organization capital can be sold as part of the firm, and so the dynamic process of transforming specific human capital into organization capital means that the value of the firm increases over time.

Suggested Citation

  • Atsushi Oshima & B. Ravikumar & Raymond Riezman, 2009. "Entrepreneurship, Organization Capital, and the Evolution of the Firm," Springer Books, in: Takashi Kamihigashi & Laixun Zhao (ed.), International Trade and Economic Dynamics, pages 499-511, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-78676-4_32
    DOI: 10.1007/978-3-540-78676-4_32
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    JEL classification:

    • D92 - Microeconomics - - Micro-Based Behavioral Economics - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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