Stakeholder Value Equilibration, Disequilibration, and the Entrepreneurial Process

Posted: 24 Nov 2009

See all articles by Dean Shepherd

Dean Shepherd

University of Colorado at Boulder - Department of Management

Moren Lévesque

University of Waterloo

Date Written: 2002

Abstract

Entrepreneurs profit from discrepancies betweencurrent prices and the value of a stakeholder's resource.Thus, in theory(and particularly in the writings of S. Venkataraman), the entrepreneurialprocess tends toward equilibrium. The process can, however, also represent avalue disequilibrating process by permitting entrepreneurs to generate ormaintain personal wealth through the exploitation of a stakeholder group (atthe expense of societal wealth). While Venkataraman's argument that the equilibrating force invariablyovercomes the disequilibrating force is valid, the speed of that processremains indeterminate.Both the "visible hand of government" andthe entrepreneur's decisions have an impact on the speed of the process ofvalue equilibration. By keeping patent lives short, the government may promote competition andlow prices (in other words, equilibrium) in the product market.Theentrepreneur, meanwhile, can aid the movement toward value equilibration bymaking the "moral" decision to sacrifice personal wealth for increasedsocietal wealth.In the quest for value equilibrium, time is of theessence, particularly in the minds of exploitable stakeholders. (SAA)

Keywords: Social wealth, Venkataraman, Sankaran, Public policies, Ethics, Employee exploitation, Equilibrium, Wealth creation, Stakeholders, Patents

Suggested Citation

Shepherd, Dean and Lévesque, Moren, Stakeholder Value Equilibration, Disequilibration, and the Entrepreneurial Process (2002). Ethics and Entrepreneurship, Vol. , p. 151-156 2002. Available at SSRN: https://ssrn.com/abstract=1512282

Dean Shepherd (Contact Author)

University of Colorado at Boulder - Department of Management ( email )

Boulder, CO 80309-0419
United States
303-492-5962 (Fax)

Moren Lévesque

University of Waterloo ( email )

Waterloo, Ontario N2L 3G1
Canada

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