Hans Ecomics is blogging through a new book by Peter Klein and Nicolai Foss.
Foss and Klein (FK) lament from the start the schism between the firm and the entrepreneur which has been erected in economic science. They argue that for a full understanding of the firm, one must understand the entrepreneurs who make decisions within the firm; while for a full understanding of the entrepreneur, one must understand the environment of the firm in which he acts. Their effort is to make the needed connection where a substantial gap currently exists between the firm and the entrepreneur.
Foss and Klein draw on the Austrian school of economics view of heterogenous capital goods and an active, thinking entrepreneur to establish their definition of entrepreneurship.
Chapter three of Nicolai Foss and Peter Klein’s book Organizing Entrepreneurial Judgment: A New Approach to the Firm takes a detailed look at the opportunity discovery view of entrepreneurship put forth by Kirzner (as we discussed in part 2 yesterday) and compares and contrasts it with the views of those in the Austrian School of economics.