Without judgment: An empirically-based entrepreneurial theory of the firm.


Austrian ideas about the firm have grown rather naturally out of the central body of Austrian thought with its focus on entrepreneurship, subjectivism and market processes. In this paper we critically evaluate some Austrian ideas on the firm, with particular attention to the concept of entrepreneurial judgment. We then describe recent empirical work in entrepreneurship that has identified key elements of what might reside inside the “black box” of entrepreneurial decision making. We conclude that expertise in this type of decision making embodies procedural knowledge that is adaptive in the absence of substantive knowledge, i.e. without judgment.

Journal or Publication:
Review of Austrian Economics
Authors:
Saras Sarasvathy
Nick Dew
Tags:
Status:
publish
Year Published
2011
Relevant Principles:
Download Attachment:
 PDF Download