THE BUSINESS FIRM AS A HYBRID HAYEKIAN ORDER: WHAT IS THE ROLE OF THE ENTREPRENEUR?

Abstract

Starting from Hayek’s distinction between spontaneous and man-made orders, we attempt to analyze the role of the entrepreneur in business organizations. The business firm shares important elements of both categories, thus we describe it as a hybrid order. We proceed to construct an account of the entrepreneur that is consistent both with the attributes of the firm that reflect its affinity with man-made organizations, as well as those that reflect its affinity with spontaneous orders. We highlight the concept of entrepreneurial leadership as the major factor for the existence of business organizations and we discuss why the actual mode in which entrepreneurial leadership is exercised has important implications for the development of the firm.

Citation

Ioannides, S. (2003), "THE BUSINESS FIRM AS A HYBRID HAYEKIAN ORDER: WHAT IS THE ROLE OF THE ENTREPRENEUR?", Koppl, R., Birner, J. and Kurrild-Klitgaard, P. (Ed.) Austrian Economics and Entrepreneurial Studies (Advances in Austrian Economics, Vol. 6), Emerald Group Publishing Limited, Leeds, pp. 153-171. https://doi.org/10.1016/S1529-2134(03)06010-1