A subjectivist theory of entrepreneurship

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. Published: 2004 URL: http://www.business.uiuc.edu/Working_Papers/papers/04−0104.pdf A Subjectivist Theory of Entrepreneurship Joseph T. Mahoney Professor of Strategy Department of Business Administration College of Business 339 Wohlers Hall 1206 South Sixth Street Champaign, IL 61820 [email protected] and Steven C. Michael Associate Professor of Strategy Department of Business Administration College of Business 350 Wohlers 1206 South Sixth Street Champaign, IL 61820 [email protected] A Subjectivist Theory of Entrepreneurship