More on Opportunity Discovery and Entrepreneurial Judgment

26 February 2008 at 10:49 am 2 comments

| Nicolai Foss |

Peter and I (well, mostly Peter) have often contrasted the Knightian notion of entrepreneurial judgment with other notions of entrepreneurship, mainly Kirzner’s concept of alertness (here). In “Entrepreneurship: From Opportunity Discovery to Judgment” (download from this page), we provide what is no doubt the definitive statement on the issue. The paper is a draft of chapter 2 in our forthcoming book, Entrepreneurial Judgment and the Theory of the Firm, and constructive criticism is most appreciated. Here is the abstract:

Entrepreneurship has become a fast-growing subfield in management research, and is increasingly appearing in economics, finance, and even law. We survey a number of approaches to entrepreneurship in the economics and management literatures, and argue that modern research in this area need to be focused around ideas from Austrian economics and Frank Knight on entrepreneurial judgment. We critically discuss the recent opportunity discovery literature in management, and argue that it has partially misunderstood the Austrian origins of the theory, and fails to adequately distinguish between opportunity identification and opportunity exploitation.

UPDATE: You can also download the paper from SSRN.

Entry filed under: - Foss -, Austrian Economics, Entrepreneurship.

Off to Sundance The SMG in EMR

2 Comments Add your own

  • 1. Warren Miller  |  26 February 2008 at 12:28 pm

    Maybe I’m missing something here, Nicolai, but that link to Kirzner’s “concept of alertness” just brings me back to this page and related posts. Maybe that’s what it’s supposed to do, but I thought I’d note it, just in case.

    While I’m here, thanks to you and Peter for this great blog. I think O&M is far and away the best on the Net. Please keep up the great work!

  • 2. Peter Klein  |  26 February 2008 at 12:38 pm

    Warren, thanks for the very kind words. We certainly think we have the best readers and commentators on the Net.

    Actually Nicolai’s link takes you to a search results page, but the present post appears at the top of the page, making things a little confusing. After hitting the link scroll down and you’ll find more posts with “alertness” and “judgment” as key words.

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Our Recent Books

Nicolai J. Foss and Peter G. Klein, Organizing Entrepreneurial Judgment: A New Approach to the Firm (Cambridge University Press, 2012).
Peter G. Klein and Micheal E. Sykuta, eds., The Elgar Companion to Transaction Cost Economics (Edward Elgar, 2010).
Peter G. Klein, The Capitalist and the Entrepreneur: Essays on Organizations and Markets (Mises Institute, 2010).
Richard N. Langlois, The Dynamics of Industrial Capitalism: Schumpeter, Chandler, and the New Economy (Routledge, 2007).
Nicolai J. Foss, Strategy, Economic Organization, and the Knowledge Economy: The Coordination of Firms and Resources (Oxford University Press, 2005).
Raghu Garud, Arun Kumaraswamy, and Richard N. Langlois, eds., Managing in the Modular Age: Architectures, Networks and Organizations (Blackwell, 2003).
Nicolai J. Foss and Peter G. Klein, eds., Entrepreneurship and the Firm: Austrian Perspectives on Economic Organization (Elgar, 2002).
Nicolai J. Foss and Volker Mahnke, eds., Competence, Governance, and Entrepreneurship: Advances in Economic Strategy Research (Oxford, 2000).
Nicolai J. Foss and Paul L. Robertson, eds., Resources, Technology, and Strategy: Explorations in the Resource-based Perspective (Routledge, 2000).

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