Published online by Cambridge University Press: 05 June 2012
The theory of entrepreneurship and the theory of the firm should be treated together. And yet, the important connections between these two bodies of literature have been largely overlooked. This is our book’s basic motivation.
How, then, are entrepreneurs and firms connected? Do entrepreneurs need business firms to carry out their function? Or, do firms need entrepreneurs to survive in the competitive market process? And if there is a role for the entrepreneur in the firm, what is it, exactly? Where in the firm does entrepreneurial activity mainly take place? How does the organization of the firm influence entrepreneurial actions? Are business firms run by entrepreneurs, or rather by hired managers? How does firm organization (e.g., the allocation of residual income and control rights) affect the quantity and quality of entrepreneurial ideas? Can entrepreneurship be a property of a managerial team – or is it strictly an individual phenomenon?
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