Dynamic Creation: Extending the Radical Austrian Approach to Entrepreneurship

Abstract

We develop a new perspective on entrepreneurship as a dynamic, complex, subjective process of creative organizing. Our approach, which we call ‘dynamic creation’, synthesizes core ideas from Austrian ‘radical subjectivism’ with complementary ideas from psychology (empathy), strategy and organization theory (modularity), and complexity theory (self-organization). We articulate conjectures at multiple levels about how such dynamic creative processes as empathizing, modularizing, and self-organizing help organize subjectively imagined novel ideas in entrepreneurs’ minds, heterogeneous resources in their firms, and disequilibrium markets in their environments. In our most provocative claim, we argue that entrepreneurs, by imagining divergent futures and (re)combining heterogeneous resources to create novel products, drive far-from-equilibrium market processes to create not market anarchy but market order. We conclude our exposition of each dynamic creative process by offering one possible direction for future research and articulating additional conjectures that help point the way. Throughout, we draw examples from CareerBuilder—a firm that has played a major role in creating and shaping the online model in the job search/recruiting industry—and its industry rivals (e.g. Monster, Yahoo’s HotJobs) to illustrate selected concepts and relationships in dynamic entrepreneurial creation.

Entrepreneurship and process studies

“…It is found, for example, in the adoption of sensemaking theory and rhetorical analysis (Anderson et al, 2009), and other interpretive conceptualizations (Leitch et al, 2009), to investigate how firms are talked into existence, something the burgeoning research agenda of 'effectuation thinking' (Sarasvathy, 2001) is also alive to. Processual approaches have also been instigated in historical analyses of entrepreneurship (Popp and Holt, 2013), to the study of entrepreneurial emergence (Shah and Tripsas, 2007) and in connecting processual thinking, entrepreneurship and philosophical inquiry (Chiles et al, 2010;Hjorth, 2014;Seymour, 2006;Styhre, 2008) Even then, following on from the review by Steyaert (2007), it is fair to say that there have been few sustained and explicit attempts to bring process thinking to bear in the field of entrepreneurship studies, while many possibilities remain quasi unexplored, such as practice-based, actor-network theory (ANT) oriented and so-called radical processual approaches. In our view, these recent and other advances in process thinking now make it even more urgent to progress further on processual entrepreneurship studies.…”

Entrepreneur`s Trinity and its manifestation under conditions of cognitive capitalism

“…For the purpose of this paper, we employ the theory of pillars and carriers of institutes (Scott, 2008), Weik`s conception of enactment and sense-making (Weick, 1988;1995;Maitlis, & Christianson, 2014), and Austrian Economic Theory of entrepreneurship, (Foss, Klein, Kor, & Mahoney, 2008) especially, its Radical Subjectivist version (Chiles et al, 2010) as a methodological foundation for the identification of entrepreneurial subjectivity, sources of its activity and specification of interactions that impact the http: //dx.doi.org/10.15405/epsbs.2017.07.02.47 Corresponding Author: Vitaliy V. Kashpur Selection and peer-review under responsibility of the Organizing Committee of the conference eISSN: 373 functioning of entrepreneurial subjectivity.…”

A Value-based Approach to Unspelling Entrepreneurship

“…In such conditions the entrepreneurship theory starts developing based on the notions, denoting the process of creative reality transformation such as judgment [6], alertness [7], empathy [8], effectuation, [9] creative team act [10], social network [11], imagination [12].…”