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The Canonical Classical Model of Political Economy

Journal of Economic Literature 2016
Adam Smith, David Ricardo, Thomas Robert Malthus, and John Stuart Mill shared in common essentially one dynamic model of equilibrium, growth, and distribution. When the limitation of land and natural resources is added to the model of Karl Marx, he also ends up with this same canonical classical model. In its present version the model is stripped down to its minimal essentials. For brevity I employ modern mathematical tools, but only to characterize in modern terms the relations that were actually common to all these writers. The reader should of course be warned that any simple codification of the classical economists' discursive writings must be an oversimplification: in some of their passages they qualify what they have written elsewhere; in some they provide negations and contradictions. Not a few of the stereotypes about the classical writers are, to paraphrase Voltaire, myths agreedupon by later commentators-distortions that both improve and libel the originals. The relevant object of study for a modern scholar is the corpus of original texts and the commentaries on them, the latter not being genuinely of less interest than the former once we have succeeded in telling them apart. To the fascinating question of whether classical political economy does, or can be made to, offer an alternative paradigm --in the sense of Thomas Kuhn [11, 1962]-to modern mainstream economics, the present investigation provides an instructive answer. So to speak, within every classical economist there is to be discerned a modern economist trying to be born. A Ricardo or Mill did not so much replace supply and demand by quite different mechanisms but rather sought to be able to say something significant and limiting about their properties, quite in the same way that we moderns endeavor to do. I describe and analyze here the basic classical model in its essential form.

Entrepreneurial inception: The role of imprinting in entrepreneurial action

Journal of Business Venturing 2015 30(1), 11-28
Recent research highlights that founders' early decisions and the environmental conditions at founding each imprint upon a new venture in ways that affect growth and survival. However, we know much less about how the entrepreneur is imprinted and how the outcome of this imprinting process influences the entrepreneur and the venture. Through semi-structured interviews and content analysis, our study examines entrepreneurs' formative experiences during sensitive periods of transition, which we refer to as sources of imprint. We illustrate how these sources of imprint impact entrepreneurial decision making and explain how they guide entrepreneurs' decisions as they progress through their entrepreneurial careers. In doing so, we improve our understanding of how entrepreneurs navigate the entrepreneurial process.

Where Do Born Globals Come from? A Neoconfigurational Institutional Theory

Organization Science 2022 33(4), 1251-1272
Born globals, recently established firms that obtain a substantial share of their revenue from foreign markets, can help strengthen countries’ economic vitality and increase innovation levels. The extent of born global formation varies considerably across countries, yet it is unclear why this is the case. Drawing on the neoconfigurational institutional perspective, we develop a typology of institutional contexts associated with high born global formation rates. We posit that high rates of born global formation occur where institutional features favorable to border-spanning activities complement institutional features conducive to entrepreneurial activity, thus forming an institutional configuration that enables, equips, and motivates more societal members to launch born globals. Accordingly, we hypothesize a primary institutional configuration where international transaction facilitators, entrepreneurial educational capital, and entrepreneurial norms combine to propel born global formation. Further, we draw on the internationalization literature to propose two alternative types of institutional configurations conducive to born global formation. These two types provide functional substitutes for the primary type and are distinctly propelled by (1) escapism from low-quality public governance institutions or (2) immigrant entrepreneurship. Fuzzy-set qualitative comparative analysis on data from 66 countries supports our typology and illustrates why born global activity may thrive even in contexts with institutional weaknesses. Our study develops a neoconfigurational model to advance a holistic understanding of the born global phenomenon’s theoretical drivers, contributing to research on comparative capitalism and international entrepreneurship.