The Equilibrating and Disequilibrating Effects of Entrepreneurship: Revisiting the Central Premises.
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| Authors: | Keyhani, Mohammad1, Lévesque, Moren2 |
|---|---|
| Source: | Strategic Entrepreneurship Journal. Mar2016, Vol. 10 Issue 1, p65-88. 24p. |
| Subject Terms: | *Entrepreneurship, *Businesspeople, *Corporate founders, *Simulation methods & models, Computer simulation |
| Abstract: | Research summary We review existing theoretical propositions on the equilibrating and disequilibrating effects of entrepreneurship in the market process. We then introduce a game theoretical model of the market process and employ computer simulation to analyze it through time. The formal analysis suggests that entrepreneurship as the creation of new opportunities may not always be disequilibrating, and entrepreneurship as the discovery and exploitation of existing opportunities may not always be equilibrating. We identify specific conditions that produce counterexamples to the generic equilibration and disequilibration propositions previously considered to be the central premises of entrepreneurship research. Managerial summary Many entrepreneurs advance society by building businesses around creative new ideas. Yet, other entrepreneurs start businesses by discovering opportunities to profit without necessarily innovative ideas. In reality, most entrepreneurship involves both creation and discovery. We run computer simulations of a small hypothetical economy to analyze the impact of creation and discovery actions on the extent to which the economy contains unexploited opportunities at any given time. Our results largely support previous ideas on how entrepreneurs help clear the markets by discovering opportunities or how innovations disrupt the market through creative destruction. Our results also highlight ways in which these ideas may be oversimplified and may have boundary conditions. [ABSTRACT FROM AUTHOR] |
| Database: | Entrepreneurial Studies Source |
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| FullText | Links: – Type: pdflink Text: Availability: 1 |
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| Header | DbId: ent DbLabel: Entrepreneurial Studies Source An: 113900770 AccessLevel: 6 PubType: Academic Journal PubTypeId: academicJournal PreciseRelevancyScore: 0 |
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| Items | – Name: Author Label: Authors Group: Au Data: <searchLink fieldCode="AR" term="%22Keyhani%2C+Mohammad%22">Keyhani, Mohammad</searchLink><relatesTo>1</relatesTo><br /><searchLink fieldCode="AR" term="%22Lévesque%2C+Moren%22">Lévesque, Moren</searchLink><relatesTo>2</relatesTo> – Name: TitleSource Label: Source Group: Src Data: <searchLink fieldCode="JN" term="%22Strategic+Entrepreneurship+Journal%22">Strategic Entrepreneurship Journal</searchLink>. Mar2016, Vol. 10 Issue 1, p65-88. 24p. – Name: Subject Label: Subject Terms Group: Su Data: *<searchLink fieldCode="DE" term="%22Entrepreneurship%22">Entrepreneurship</searchLink><br />*<searchLink fieldCode="DE" term="%22Businesspeople%22">Businesspeople</searchLink><br />*<searchLink fieldCode="DE" term="%22Corporate+founders%22">Corporate founders</searchLink><br />*<searchLink fieldCode="DE" term="%22Simulation+methods+%26+models%22">Simulation methods & models</searchLink><br /><searchLink fieldCode="DE" term="%22Computer+simulation%22">Computer simulation</searchLink> – Name: Abstract Label: Abstract Group: Ab Data: Research summary We review existing theoretical propositions on the equilibrating and disequilibrating effects of entrepreneurship in the market process. We then introduce a game theoretical model of the market process and employ computer simulation to analyze it through time. The formal analysis suggests that entrepreneurship as the creation of new opportunities may not always be disequilibrating, and entrepreneurship as the discovery and exploitation of existing opportunities may not always be equilibrating. We identify specific conditions that produce counterexamples to the generic equilibration and disequilibration propositions previously considered to be the central premises of entrepreneurship research. Managerial summary Many entrepreneurs advance society by building businesses around creative new ideas. Yet, other entrepreneurs start businesses by discovering opportunities to profit without necessarily innovative ideas. In reality, most entrepreneurship involves both creation and discovery. We run computer simulations of a small hypothetical economy to analyze the impact of creation and discovery actions on the extent to which the economy contains unexploited opportunities at any given time. Our results largely support previous ideas on how entrepreneurs help clear the markets by discovering opportunities or how innovations disrupt the market through creative destruction. Our results also highlight ways in which these ideas may be oversimplified and may have boundary conditions. [ABSTRACT FROM AUTHOR] |
| PLink | https://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=ent&AN=113900770 |
| RecordInfo | BibRecord: BibEntity: Identifiers: – Type: doi Value: 10.1002/sej.1210 Languages: – Code: eng Text: English PhysicalDescription: Pagination: PageCount: 24 StartPage: 65 Subjects: – SubjectFull: Entrepreneurship Type: general – SubjectFull: Businesspeople Type: general – SubjectFull: Corporate founders Type: general – SubjectFull: Simulation methods & models Type: general – SubjectFull: Computer simulation Type: general Titles: – TitleFull: The Equilibrating and Disequilibrating Effects of Entrepreneurship: Revisiting the Central Premises. Type: main BibRelationships: HasContributorRelationships: – PersonEntity: Name: NameFull: Keyhani, Mohammad – PersonEntity: Name: NameFull: Lévesque, Moren IsPartOfRelationships: – BibEntity: Dates: – D: 01 M: 03 Text: Mar2016 Type: published Y: 2016 Identifiers: – Type: issn-print Value: 19324391 Numbering: – Type: volume Value: 10 – Type: issue Value: 1 Titles: – TitleFull: Strategic Entrepreneurship Journal Type: main |
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