Most scholarly work on trust recognizes its importance as part of a non-market form of governance in exchanges between firms. However, trust is only one such governance device that can be used, other devices such as reputation, bargaining power, and contracts can also be used to govern...

Macroeconomic theory assumes that factors of production in the economy are homogeneous and fungible. As a result, it is poorly suited for analyzing and developing policy responses to the recent financial crisis. Theories of strategic management and organization, with their emphasis on...

Prior work in experimentation assumes that the choice about when and how to experiment on a business idea is a trade-off between the cost of an experiment and the value of the information it reveals. This paper captures the possibility that experimentation can also change the value of an idea -...

As the study of entrepreneurship continues to advance, recognition of the role of theory in the development of the field grows. In this paper, we build on our collective experiences to offer a peak into the inner working of theorizing, discuss different types of theoretical insights for...

In the extant organizational, management, and strategy literatures there are now frequent calls for microfoundations. However, there is little consensus on what microfoundations are and what they are not. In this paper we first (briefly) review the history of the microfoundations discussion and...

Stringent bankruptcy laws are generally understood to increase the costs of failure and thus not conducive for entrepreneurship. In this paper, theory is developed and tested exploring the moderating influences of the dimensions of culture — individualism — collectivism, masculinity–...

This paper focuses on the role of kinship or family ties in entrepreneurial activities. We develop theoretical models of entrepreneurial market opportunity recognition and resource acquisition for family firms based upon social network theory. Building upon Granovetter’s (1973) distinction...

Two theories of entrepreneurial action - Discovery Theory and Creation Theory - are discussed. While Discovery Theory and its assumptions have been addressed in the literature, neither the assumptions of Creation Theory nor how they are related to the assumptions of Discovery Theory have yet...