Abstract
Entrepreneurship means that action is something active, creative and human. Pure entrepreneurship is the deployment of the person’s creative capacity in the reality around her. This is a view that implies an extension of economics. Firms occupy a central position as basic institutions in society. It is a dynamic view that shows the firm’s importance as institution in which the lead role is played by the person and the driving force is entrepreneurship.
We can define a criterion of entrepreneurial efficiency based on the enhancement of persons’ possibilities for action. First, an economic, social and cultural system will be more efficient if it increases personal possibilities for action. This first aspect concerns personal freedom of choice. It is the freedom ‘from’. But in the course of this essay we have argued that all individual action has a social dimension and that, as a result, the institutional order is maintained by personal actions. It is the freedom ‘for’. Therefore it is necessary to supplement the criterion of coordination from the social perspective and assert that the more entrepreneurial and social coordination it generates, the more efficient personal action will be. It is the freedom ‘for’.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
It is impossible here to deal with the capabilities approach developed by A. Sen and M. Nussbaum (Nussbaum and Sen 1993). The first point should make the differences—remarkably I would say—between Sen and Nussbaum approaches. For instance, Sen (2009) presents what he considers to be distinctive of his approach, and Nussbaum (2011) does the same. For a general and critical assessment of both approaches see H. Richardson (2000, 2007).
- 2.
P. Koslowski (1996, p. 53) status emphatically that the market allow not only freedom of consumption but also of action and production.
References
Baumol W (1968) Entrepreurship in economic theory. Am Econ Rev Pap Proc 58:64–71
Baumol W (1993) Formal entrepreneurship theory in economics: existence and bounds. J Bus Ventur 8:197–210
Baumol W (1996) Entrepreneurship, management, and the structure of payoffs. MIT Press, Cambridge, MA
Casson M (1982) The entrepreneur. Barnes & Noble Books, Totowa, NJ
Csikszentmihalyi M (1996) Creativity: flow and the psychology of discovery and invention. HarperCollins, New York
Kirzner I (1973) Competition and entrepreneurship. University of Chicago Press, Chicago
Kirzner I (1979) Perception, opportunity and profit. University of Chicago Press, Chicago
Kirzner I (2000) The driving force of the market. Routledge, London
Knight F (1921) Risk, uncertainty and profit. Augustus Kelly, New York
Koslowski P (1996) Ethics of capitalism and critique of sociobiology. Springer, Berlin
Leibenstein H (1968) Entrepreneurship and development. Am Econ Rev 58:72–83
Mises L (1996) Human action: a treatise on economics (ed: Greaves BB) (4th rev edn). Foundation for Economic Education, New York
Moore G (2002) On the implications of the practice-institution distinction: MacIntyre and the application of modern virtue ethics to business. Bus Ethics Q 12(1):19–32
Moore G (2005a) Humanizing business: a modern virtue ethics approach. Bus Ethics Q 15(2):237–255
Moore G (2005b) Corporate character: modern virtue ethics and the virtuous corporation. Bus Ethics Q 15(4):659–685
Moore G (2008) Re-imagining the morality of management: a modern virtue ethics approach. Bus Ethics Q 18(4):483–511
Nelson R, Winter S (1982) An evolutionary theory of economic change. Harvard University Press, Cambridge, MA
Nussbaum M (2011) Creating capabilities. The human development approach. Belknap Press of Harvard University, Cambridge, MA
Nussbaum M, Sen A (1993) The quality of life. Clarendon Press, Oxford
Richardson H (2000) Some limitations of Nussbaum’s capabilities. Quinnipiac Law Rev 9:309–332
Richardson H (2007) The social background of capabilities for freedoms. J Hum Dev 3:388–414
Schumpeter JA (1934) Capitalism, socialism and democracy. Harper & Row, New York
Schumpeter JA (1947) The theory of economic development. Harvard University Press, Cambridge, MA
Sen A (1999) Development as freedom. Knopf, New York
Sen A (2002) Rationality and freedom. Harvard Belknap Press, Harvard
Sen A (2009) The idea of justice. Harvard University Press, Harvard
Shane S, Venkataraman S (2000) The promise of entrepreneurship as a field of research. Acad Manag Rev 25(1):217–226
Solomon RC (1992) Ethics and excellence: cooperation and integrity in business. Oxford University Press, New York
von Hayek FA (1976 [1945]) The use of knowledge in society, in individualism and economic order. Routledge and Kegan Paul, London
von Hayek FA (1989) The pretence of knowledge. Nobel lecture. Am Econ Rev 79:3–7
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2018 The Author(s)
About this chapter
Cite this chapter
Aranzadi, J. (2018). The Firm as Social Institution. In: Human Action, Economics, and Ethics. SpringerBriefs in Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-73912-0_8
Download citation
DOI: https://doi.org/10.1007/978-3-319-73912-0_8
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-73911-3
Online ISBN: 978-3-319-73912-0
eBook Packages: Economics and FinanceEconomics and Finance (R0)