Schumpeter's ‘conduct model of the dynamic entrepreneur': scope and distinctiveness

Schumpeter formulated a ‘conduct model' of entrepreneurial behaviour. Received wisdom has emphasised the economic functions of Schumpeter's entrepreneur, neglecting behavioural aspects. Schumpeter's model is examined; it posits a continuum of behaviours which are ‘entrepreneurial'...

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Bibliographic Details
Published in:Journal of evolutionary economics 2010-08, Vol.20 (4), p.583-607
Main Authors: Endres, Anthony M, Woods, Christine R
Format: Article
Language:English
Subjects:
20th century
Behavioural economics
Business economics
Cognitive limitations
Critical thinking
Economic development
Economic Growth
Economic theory
Economic Theory/Quantitative Economics/Mathematical Methods
Economics
Economics and Finance
Entrepreneurial behaviour
Entrepreneurs
Entrepreneurship
Exploitation
Handbooks
History of economic thought
Institutional/Evolutionary Economics
Microeconomics
optimization
Organizational behavior
R & D/Technology Policy
Regular Article
Schumpeter
Schumpeterian economics
Studies
Tacit knowledge
Traditions
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Summary:Schumpeter formulated a ‘conduct model' of entrepreneurial behaviour. Received wisdom has emphasised the economic functions of Schumpeter's entrepreneur, neglecting behavioural aspects. Schumpeter's model is examined; it posits a continuum of behaviours which are ‘entrepreneurial', that rely on socially situated, tacit knowledge and are expressions of conscious, subjective rationality. Schumpeter's model excluded unconscious optimisation and decision rules derived from bounded rationality. Comparisons are drawn with modern neoclassical, Austrian, and the older behavioural characterisations of entrepreneurial behaviour. The newer ‘effectuation' model of entrepreneurial behaviour is also contrasted with Schumpeter's approach. We find, among other things, that modern Schumpeterian economics associated with Nelson and Winter is not a natural continuation of Schumpeter's model. However, some developments in neo-Schumpeterian economics, including the effectuation model deriving from the older behavioural tradition, are congruent with both the original ‘conduct model' and Schumpeter's directions for further research.
ISSN:0936-9937
1432-1386
DOI:10.1007/s00191-009-0159-3