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A Subjectivist Theory of Entrepreneurship

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  • Mahoney, Joseph

    (U of Illinois at Urbana-Champaign)

  • Michael, Steven

    (U of Illinois at Urbana-Champaign)

Abstract

The current neoclassical synthesis of economic theory does not contain a role for the entrepreneur and entrepreneurial activity. In this paper we argue that such a role can be reintroduced into the economic foundations of strategy by adopting a subjectivist theory of entrepreneurship. A subjectivist theory focuses on individuals (subjects), on their knowledge, capabilities, and resources, and on the processes of discovery and creativity that constitute the heart of entrepreneurship. To begin the development of a subjectivist theory of entrepreneurship within the context of dynamic resource-based theory, we examine the thought of Edith Penrose (1959) to suggest strategic issues that invite closer examination, and we then conclude with suggested directions for further research.

Suggested Citation

  • Mahoney, Joseph & Michael, Steven, 2004. "A Subjectivist Theory of Entrepreneurship," Working Papers 04-0104, University of Illinois at Urbana-Champaign, College of Business.
    • Handle: RePEc:ecl:illbus:04-0104
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    References listed on IDEAS

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