Frank Knight, uncertainty and knowledge spillover entrepreneurship

Audretsch, David B.; Belitski, Maksim

doi:10.1017/s1744137421000527

Cited by 19 publications

(12 citation statements)

References 86 publications

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“…Entrepreneurship is inherently social. As Knight (1921, p. 4; Emmett, 2021) emphasized, “Economics deals with the social organization of economic activity” and the key to understanding profit is the entrepreneur's response to uncertainty (Knight, 1921; Audretsch and Belitski, 2021; Foss and Klein, 2012). When institutions create uncertainty beyond what would increase entrepreneurial activity, entrepreneurial efforts are likely to diminish, leading to a disruption in people's plans (Emmett, 2021).…”

Section: Discussionmentioning

confidence: 99%

Richard Cantillon and public policy

Thornton¹,

Brown

2023

JEPP

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PurposeRichard Cantillon (168?–173?) is known as the first economic theorist and the founder of entrepreneurship theory. Few would describe him as engaged in policy issues, but he did write about policy issues of interest to scholars interested in entrepreneurship and economic development. He has long been classified as a mercantilist of a bygone day, even as many believe he was resolute in not commenting on policy matters at all. His views could be a key to pursuing the policy goals of entrepreneurship scholars.Design/methodology/approachThe authors look at several topics in Cantillon's Essay on the Nature of Commerce in General (1755), read in its historical/political context, to better understand Cantillon's views. The authors then relate Cantillon's views to recent interventions in the economy.FindingsThe authors found that Cantillon held clearly antimercantilist, or free market, views. The authors also recognize that his views, given his status as the founder of entrepreneurship theory, can contribute to modern economics. As in Cantillon's day, institutional uncertainty has negative economic consequences and often leads to unproductive entrepreneurship, which is only made worse by the increased complexity of the modern economy.Originality/valueThe authors clarify Cantillon's views against modern-day interpretations and offer a clearer understanding of Cantillon's writings in the context of his Essay on the Nature of Commerce in General (1755). The authors also show the importance of the proper role of institutions for productive entrepreneurship—and the danger of unproductive or destructive entrepreneurship when such institutions do not have policies favorable to entrepreneurship.

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Section: Discussionmentioning

confidence: 99%

Richard Cantillon and public policy

Thornton¹,

Brown

2023

JEPP

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“…Our findings confirm this notion in the form of works councils. A relatively older stream of literature has highlighted the performance disadvantages of unions (Acs and Audretsch, 1987; Audretsch and von der Schulenburg, 1990; Bradley et al. , 2016; Hirsch and Link, 1987).…”

Section: Discussionmentioning

confidence: 99%

“…A works council is a group of elected workers within a firm who represent the workforce – including temporary workers – to the employer. The impact of employee representation on organizational innovation is typically studied using the context of unionization in the United States, where a negative relationship between unions and innovation performance is suggested (Acs and Audretsch, 1987; Audretsch and von der Schulenburg, 1990; Bradley et al. , 2016; Hirsch and Link, 1987).…”

Section: Introductionmentioning

confidence: 99%

The effect of temporary workers and works councils on process innovation

Durach

Wiengarten

Pagell

2022

IJOPM

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PurposeThis study aims to investigate the effects of temporary workers and works councils on process innovations at manufacturing sites. The impact of temporary workers, commonly viewed as a means of operational flexibility and cost savings, on firms’ ability to innovate is underexplored. Works councils represent and help integrate temporary workers, but are often equated with unions, which have been criticized as barriers to innovation, especially in the US.Design/methodology/approachThe authors use secondary data collected by the Institute for Employment Research (IAB) of the German Federal Employment Agency. Specifically, the authors conduct a series of regression analyses using 11-year panel data covering the period 2009–2019 with 11,641 manufacturing site-year observations.FindingsThe results suggest that the use of temporary workers initially promotes process innovation, but at too high a level, it impairs firms’ ability to innovate. Furthermore, the results suggest that works councils have a positive impact on innovation and dampen the curvilinear effect found with respect to temporary workers.Originality/valueResearch has largely focused on the cost and flexibility benefits of temporary workers. The authors analyze the effectiveness of temporary workers in terms of innovativeness. By including works councils, the study also consider the contextual environment in which temporary workers are employed. Finally, the results reject the assumption that works councils have a similar negative impact as unions on innovation; in fact, the authors find the opposite.

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“…However, with the increase of the number of FDI, the negative impact of institutional distance began to ease, and the “outsider advantage” gradually emerged [ 44 ]. Existing studies show that previous M&A experience has a critical impact on subsequent M&A activities through knowledge transfer, and successful cross-border M&A experience in international business services can overcome the impact of institutional distance and improve the completion efficiency [ 45 ].…”

Section: Methodsmentioning

confidence: 99%

Social Environment and Healthy Investment Behavior: Joint Influence of Culture and Institution on China

Shen

2022

IJERPH

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The influence of the social environment on healthy investment behavior is a vital research topic. This paper focuses on foreign direct investment (FDI) as an important part of its broad impact in improving the level of capital circulation and diversifying the non-systemic risk of a single country portfolio. Using data from 35 countries on direct investment in China, we find that the impact of the social environment on healthy investment behavior is mainly reflected in investors’ resistance to cultural distance and their benefit compensation across institutional distance. In addition, their joint influence is still negative, dominated by cultural distance, which can still verify that institutional distance mitigates the negative effect of cultural distance on FDI. Therefore, in order to promote international healthy investment behavior, it is feasible to improve both the mitigation effect of the institution in the short term and promote the level of cultural exchange in the long term, according to the research results of this paper.

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Frank Knight, uncertainty and knowledge spillover entrepreneurship

Cited by 19 publications

References 86 publications

Richard Cantillon and public policy

Richard Cantillon and public policy

The effect of temporary workers and works councils on process innovation

Social Environment and Healthy Investment Behavior: Joint Influence of Culture and Institution on China

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