Entrepreneurship, Organization Capital and the Evolution of the Firm

24 Pages Posted: 5 Mar 2008

See all articles by Atsushi Oshima

Atsushi Oshima

University of Iowa - Henry B. Tippie College of Business - Department of Economics

B. Ravikumar

Federal Reserve Bank of Saint Louis

Raymond G. Riezman

University of Iowa - Henry B. Tippie College of Business - Department of Economics; Aarhus University - Department of Economics and Business; University of California, Santa Barbara (UCSB) - Department of Economics; GEP; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: March 1, 2008

Abstract

We view the entrepreneur as an agent who possesses human capital in the form of specific skills or talents. When she starts a firm, her human capital is essential to the firm and it has substantial private value. The entrepreneur transforms her human capital over time into what we call 'organization capital'. This organization capital can be sold as part of the firm, so the dynamic process of transforming specific human capital into organization capital means that the value of the firm increases over time.

Keywords: organization capital, entrepreneur

JEL Classification: L26, D92

Suggested Citation

Oshima, Atsushi and Ravikumar, B. and Riezman, Raymond G., Entrepreneurship, Organization Capital and the Evolution of the Firm (March 1, 2008). CESifo Working Paper Series No. 2242. Available at SSRN: https://ssrn.com/abstract=1102971

Atsushi Oshima

University of Iowa - Henry B. Tippie College of Business - Department of Economics ( email )

108 Pappajohn Building
Iowa City, IA 52242
United States

B. Ravikumar

Federal Reserve Bank of Saint Louis ( email )

411 Locust St
Saint Louis, MO 63011
United States

Raymond G. Riezman (Contact Author)

University of Iowa - Henry B. Tippie College of Business - Department of Economics ( email )

316 PBB
Iowa City, IA 52242
United States

HOME PAGE: http://www.biz.uiowa.edu/faculty/rriezman/

Aarhus University - Department of Economics and Business ( email )

Fuglesangs Alle 4
Aarus, 8210
Denmark

HOME PAGE: http://www.biz.uiowa.edu/faculty/rriezman/

University of California, Santa Barbara (UCSB) - Department of Economics ( email )

2127 North Hall
Santa Barbara, CA 93106
United States

GEP ( email )

University Park
Nottingham, NG7 2RD
United Kingdom

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.cesifo.de

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