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How Strategic Entrepreneurship and The Institutional Context Drive Economic Growth

Christian Bjørnskov¹; Nicolai Foss^2,3

¹ Department of Economics and Business Aarhus University Aarhus Denmark · ² Department for Strategic Management and Globalization Copenhagen Business School Frederiksberg Denmark · ³ Department of Strategy and Management Norwegian School of Economics and Business Administration Bergen Norway

The economics of growth has shown that countries grow by better allocating whatever resources are at their disposal and by introducing productivity‐enhancing innovations. Strategic entrepreneurship plays a key role in this process by searching for, combining, trying out, etc., new resource combinations in the pursuit of profits under uncertainty. Institutions that support economic freedom allow such experimentation to take place at low transaction costs, positively influencing total factor productivity. We test these ideas on a unique panel data set derived from Compendia, World Bank data, and the Fraser Institute's economic freedom data. Copyright © 2013 Strategic Management Society.

DOI

10.1002/sej.1148

Volume

7 (1)

Pages

50-69

Language

en

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