Entrepreneurship, Appropriability and the Co-Creation of Markets and Ecosystems

Abstract

While purposive action is widely viewed as a sine qua non of entrepreneurship, the purpose of such purposive action, is often muted. We submit that exploring the purpose of entrepreneurial behavior, can yield valuable insights into the study of entrepreneurship. We leverage Ronald Coase’s concepts of the ‘nature’ and ‘essence’ of the firm to the logically prior questions of why do entrepreneurs exist and what do they do. We stress the importance of ‘appropriability’, as an entrepreneurial objective. We propose and develop the concept of market and ecosystem co-creation as a hitherto neglected entrepreneurial function and capability, aimed at appropriating co-created value. We employ case examples and present a case study that puts our analysis to test.

Keywords: Entrepreneurship, Appropriability, Markets, Ecosystem, Co-creation

JEL Classification: L22, L26, L11, M21, D52, D40