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Do You See What I Mean? An Entrepreneurship Perspective on the Nature and Boundaries of the Firm

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  • Ivo Zander

Abstract

abstract In answering the questions ‘why does the firm exist?’ and ‘what determines its boundaries?’, established theories of the firm have focused on boundary choice in a context of relatively easily identified and evaluated alternatives. This paper starts by asking the kindred question ‘why does the firm come into existence?’, shifting attention to the circumstances and choices surrounding new firm formation and the exploitation of new and untried business ideas. It proceeds to delineate an entrepreneurship perspective on the nature and boundaries of the firm, where boundary decisions are driven by the difficulty of implementing new, subjective means–ends frameworks in sometimes very unreceptive markets. A set of propositions developing the concepts of cognitive incongruence and cognitive incompleteness suggests that activities are internalized when other market participants are unable to accept or understand the entrepreneur's subjectively perceived means–ends framework. In conclusion, the paper supports the development of theory that explains choice of modes of action based on subjective world views and the emerging notion of a distinctive entrepreneurship‐based theory of the firm.

Suggested Citation

  • Ivo Zander, 2007. "Do You See What I Mean? An Entrepreneurship Perspective on the Nature and Boundaries of the Firm," Journal of Management Studies, Wiley Blackwell, vol. 44(7), pages 1141-1164, November.
    • Handle: RePEc:bla:jomstd:v:44:y:2007:i:7:p:1141-1164
    DOI: 10.1111/j.1467-6486.2007.00732.x
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    Cited by:

    1. Anna Grandori, 2013. "Models of rationality in economic organization: ‘economic’, ‘experiential’ and ‘epistemic’," Chapters, in: Anna Grandori (ed.), Handbook of Economic Organization, chapter 1, Edward Elgar Publishing.
    2. Tuija Mainela & Vesa Puhakka & Per Servais, 2015. "Boundary crossing for international opportunities," Journal of International Entrepreneurship, Springer, vol. 13(3), pages 173-185, September.
    3. Lerner, Daniel A., 2016. "Behavioral disinhibition and nascent venturing: Relevance and initial effects on potential resource providers," Journal of Business Venturing, Elsevier, vol. 31(2), pages 234-252.
    4. Daniel A. Lerner & Richard A. Hunt & Ingrid Verheul, 2017. "Dueling Banjos: Harmony and Discord between ADHD and Entrepreneurship," Working Papers 2017-07, Colorado School of Mines, Division of Economics and Business.
    5. Kano, Hirokazu, 2023. "Early internationalization and subsequent geographic expansion: An extended Penrosean perspective," International Business Review, Elsevier, vol. 32(1).
    6. Ljungquist, Urban & Ghannad, Navid, 2012. "Obstacles and Facilitators of Developments in Entrepreneur-driven Firms," Working Papers 2012/01, Blekinge Institute of Technology, Department of Industrial Economics.
    7. Daniel Leunbach & Truls Erikson & Max Rapp-Ricciardi, 2020. "Muddling through Akerlofian and Knightian uncertainty: The role of sociobehavioral integration, positive affective tone, and polychronicity," Journal of International Entrepreneurship, Springer, vol. 18(2), pages 145-164, June.
    8. Andreas P. Distel & Wolfgang Sofka & Pedro de Faria & Miguel Torres Preto & António Sérgio Ribeiro, 2022. "Dynamic capabilities for hire – How former host-country entrepreneurs as MNC subsidiary managers affect performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 657-688, June.
    9. Desirée Blankenburg Holm & Martin Johanson & Pao Kao, 2015. "From outsider to insider: Opportunity development in foreign market networks," Journal of International Entrepreneurship, Springer, vol. 13(3), pages 337-359, September.
    10. Bureau, Sylvain & Zander, Ivo, 2014. "Entrepreneurship as an art of subversion," Scandinavian Journal of Management, Elsevier, vol. 30(1), pages 124-133.
    11. Giovanni Favero & Vladi Finotto & Anna Moretti, 2016. "Historicizing Entrepreneurial Imprinting: Sensitive Periods, Cognitive Frames and Resistance," Working Papers 10, Venice School of Management - Department of Management, Università Ca' Foscari Venezia.
    12. Luca Grilli & Boris Mrkajic & Emanuele Giraudo, 2023. "Industrial policy, innovative entrepreneurship, and the human capital of founders," Small Business Economics, Springer, vol. 60(2), pages 707-728, February.
    13. Natalya Yu. VLASOVA & Elena L. MOLOKOVA, 2019. "Mechanisms for coordinating stakeholders of the higher education market: Theoretical approaches to identification," Upravlenets, Ural State University of Economics, vol. 10(2), pages 21-30, May.
    14. Thierry BURGER-HELMCHEN, 2008. "Plural-entrepreneurial activity for a single start-up: a case study," Working Papers of BETA 2008-01, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    15. Tomi Laamanen & Johan Wallin, 2009. "Cognitive Dynamics of Capability Development Paths," Journal of Management Studies, Wiley Blackwell, vol. 46(6), pages 950-981, September.
    16. Niron Hashai & Ivo Zander, 2019. "Dynamics in the Origins of Technological Knowledge in Early Firm Years: Implications for New Product Introductions," Strategy Science, INFORMS, vol. 4(3), pages 217-233, September.
    17. Thomas Hutzschenreuter & Florian Gröne, 2009. "Changing Vertical Integration Strategies under Pressure from Foreign Competition: The Case of US and German Multinationals," Journal of Management Studies, Wiley Blackwell, vol. 46(2), pages 269-307, March.
    18. Anna Grandori, 2010. "A rational heuristic model of economic decision making," Rationality and Society, , vol. 22(4), pages 477-504, November.
    19. Martin P. Allmendinger & Elisabeth S. C. Berger, 2019. "Selecting Corporate Firms For Collaborative Innovation: Entrepreneurial Decision Making In Asymmetric Partnerships," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(01), pages 1-34, January.
    20. Vladi Finotto & Anna Moretti, 2014. "Unveiling the founder effect: a conceptual framework of entrepreneurial imprinting," Working Papers 07, Venice School of Management - Department of Management, Università Ca' Foscari Venezia.
    21. Storchevoy, Maxim A., 2010. "A general theory of the firm: From Knight to relationship marketing," Working Papers 765, Graduate School of Management, St. Petersburg State University.

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