Institutional Entrepreneurship: Productive or Destructive?

30 Pages Posted: 14 Feb 2012 Last revised: 29 Jan 2014

See all articles by Tomáš Otáhal

Tomáš Otáhal

Mendel University - Faculty of Economics and Business Administration

Date Written: February 12, 2012

Abstract

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

Otáhal, Tomáš, Institutional Entrepreneurship: Productive or Destructive? (February 12, 2012). Available at SSRN: https://ssrn.com/abstract=2003747 or http://dx.doi.org/10.2139/ssrn.2003747

Tomáš Otáhal (Contact Author)

Mendel University - Faculty of Economics and Business Administration ( email )

Staňkova 578/16b
Brno, 602 00
Czech Republic

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