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Classical Chinese military strategy as unproductive entrepreneurship

In: Handbook of Research on Entrepreneurship and Conflict

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  • Matthew McCaffrey

Abstract

The institutional environment determines the relative rewards to different kinds of social behavior and is a key factor in entrepreneurs’ decisions to allocate their talents to productive, unproductive, or destructive ventures. This chapter applies this theoretical insight to a historical case: the development of classical military strategy during China’s Warring States period, 475-221 BC. This period of perpetual military conflict inspired many social, political, and economic innovations, including famous writings on military strategy such as Sunzi’s Art of War. In fact, innovative military talents were so highly valued in this period that an interstate market for talent merged for the services of skilled strategists. Simultaneously, commercial skills were often socially stigmatized or even punished, especially relative to government service. The rise of Legalist policies favoring agriculture and a strong military supported this imbalance of wealth and prestige. As a result, productive market entrepreneurship suffered in this period relative to unproductive military entrepreneurship.

Suggested Citation

  • Matthew McCaffrey, 2024. "Classical Chinese military strategy as unproductive entrepreneurship," Chapters, in: Wim Naudé & Bernadette Power (ed.), Handbook of Research on Entrepreneurship and Conflict, chapter 6, pages 89-104, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:21252_6
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    File URL: https://www.elgaronline.com/doi/10.4337/9781802206791.00014
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