Institutional Entrepreneurship: Productive or Destructive?
30 Pages Posted: 14 Feb 2012 Last revised: 29 Jan 2014
Date Written: February 12, 2012
I develop a new and original theoretical concept of productive and destructive institutional entrepreneurship that explains institutional change as being the result of entrepreneurial decision-making. I argue that William Baumol’s (1990) classification of productive, unproductive, and destructive entrepreneurship can be transformed into the more general theoretical concept of the productive and destructive institutional entrepreneurship. More precisely, I argue that William Baumol’s theoretical explanation of destructive entrepreneurship in essence describes a destructive institutional change, which is the result of destructive entrepreneurial decision-making. Therefore, I argue that productive institutional change can be explained on a similar basis within the context of a more general theoretical framework.
Keywords: Economic development, entrepreneurship, institutional change, rent-seeking, rules of game
JEL Classification: B52, B53, L26
Suggested Citation: Suggested Citation