Where Do New Market Factors Come From?

28 Pages Posted: 22 Apr 2014 Last revised: 13 Apr 2017

See all articles by Per L. Bylund

Per L. Bylund

School of Entrepreneurship; Ratio Institute; Ludwig von Mises Institute

Robert Wuebker

University of Utah - David Eccles School of Business

Date Written: April 20, 2014

Abstract

There has been increased attention to the origins of value in both entrepreneurship and strategic management. This shift in attention to value creation underscores a mismatch between theories that take resources, exchange relationships, or opportunities as given and the need to explain how new value is created. Although several streams of conceptual work inform our understanding of how economic actors organize market factors to generate economic rents, prior work is silent as to the origins of new market factors. We provide an account of entrepreneurial factor markets where, in contrast to received theory, the entrepreneurial firm performs an important function as a precondition to and a creator of new market factors. In this perspective the firm is an island of entrepreneurial innovation, which increases efficiency through increasing returns, and provides the means through which goods otherwise not possible are endogenously created by entrepreneurs through action.

Keywords: Entrepreneurship, Austrian Economics, Resource-Based View, Strategic Factor Markets

Suggested Citation

Bylund, Per L. and Wuebker, Robert Joseph, Where Do New Market Factors Come From? (April 20, 2014). Available at SSRN: https://ssrn.com/abstract=2427141 or http://dx.doi.org/10.2139/ssrn.2427141

Per L. Bylund

School of Entrepreneurship ( email )

Oklahoma State University
424 Business building
Stillwater, OK 74078
United States
4057444301 (Phone)

HOME PAGE: http://https://business.okstate.edu/directory/bylund-per-694946.html

Ratio Institute ( email )

P.O. Box 3203
SE-103 64 Stockholm
Sweden

Ludwig von Mises Institute ( email )

Auburn, AL
United States

HOME PAGE: http://mises.org/bylund

Robert Joseph Wuebker (Contact Author)

University of Utah - David Eccles School of Business ( email )

1645 East Campus Circle Drive
Salt Lake City, UT 84112-9304
United States

HOME PAGE: http://about.me/rwuebker

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