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Owners, Managers, and Entrepreneurship in The Corporate Firm

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  • Ioannides Stavros

    (Panteion University)

Abstract

The "atemporal" character of Kirzner's notion of alertness and discovery, and his insistence that entrepreneurship is independent of factor ownership have attracted many criticisms from within the Austrian camp. However, it is precisely these elements of his theory of entrepreneurship that offer important insights for the analysis of the relation between shareholders and management in the modern corporation. First of all, the Kirznerian perspective allows us to view both groups as entrepreneurial. Secondly, and contrary to modern agency theory and the Rothbardian strand of Austrian economics, it highlights the entrepreneurial role of management in introducing innovation. Finally, we argue that the Kirznerian perspective on the division of the entrepreneurial roles in the corporate firm shares some important ideas with the "resource based view" of the firm.Le caractère "atemporel" des notions kirzneriennes de vigilance et de découverte et l'insistance que met Kirzner à séparer l'activité entrepreneuriale de la propriété des facteurs lui ont valu de nombreuses critiques de la part des économistes autrichiens. Cependant, ce sont précisément ces éléments de sa théorie de l'entrepreneur qui éclairent de manière importante l'analyse de la relation entre actionnaires et gestionnaires dans l'entreprise moderne. Premièrement, la perspective kirznerienne nous permet de considérer que les deux groupes participent de l'activité entrepreneuriale. Deuxièmement, et contrairement à la théorie moderne de l'agence et la variante rothbardienne de l'économie autrichienne, elle met l'accent sur le rôle entrepreneurial de la gestion dans l'émergence d'innovations. Enfin, nous suggérons que la perspective kirznerienne à propos du partage des rôles entrepreneuriaux dans la firme présente des analogies importantes avec la théorie de la firme vue comme un "vivier de ressources".

Suggested Citation

  • Ioannides Stavros, 2002. "Owners, Managers, and Entrepreneurship in The Corporate Firm," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 12(1), pages 1-14, March.
    • Handle: RePEc:bpj:jeehcn:v:12:y:2002:i:1:n:9
    DOI: 10.2202/1145-6396.1051
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    References listed on IDEAS

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    1. Stavros Ioannides, 2002. "Entrepreneurship, Contracts and the Corporate Firm: Austrian Insights on the Contractual Nature of Business Organization," Chapters, in: Nicolai J. Foss & Peter G. Klein (ed.), Entrepreneurship and the Firm, chapter 7, Edward Elgar Publishing.
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