Economic Opportunity and Evolution: Beyond Landscapes and Bounded Rationality
Strategic Entrepreneurship Journal, Forthcoming
35 Pages Posted: 8 Jan 2013 Last revised: 23 Apr 2014
Date Written: January 7, 2013
The nature of economic opportunity has recently received significant attention in entrepreneurship, organization science and strategy. The notion of boundedly rational search on an (NK) opportunity landscape has been particularly relevant to these conversations and debates. We argue that the focus on bounded rationality and search is highly problematic for the fields of entrepreneurship and strategy and does not allow us to explain the origins of economic novelty. We contrast the NP problem with the frame problem to illustrate our point, and highlight the role of adjacent possibilities and novel affordances. We discuss the entrepreneurial and economic implications of these arguments by building on unique insights from biology, the natural and computational sciences.
Keywords: entrepreneurship, organization science, econonomic opportunity, phase space, NK landscapes, complexity theory, biology, evolutionary theory
JEL Classification: C63, D8, D83, L1, L2, P00, B25
Suggested Citation: Suggested Citation