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Economic Opportunity and Evolution: Beyond Landscapes and Bounded Rationality
Author(s) -
Felin Teppo,
Kauffman Stuart,
Koppl Roger,
Longo Giuseppe
Publication year - 2014
Publication title -
strategic entrepreneurship journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 5.061
H-Index - 46
eISSN - 1932-443X
pISSN - 1932-4391
DOI - 10.1002/sej.1184
Subject(s) - bounded rationality , entrepreneurship , novelty , affordance , rationality , focus (optics) , bounded function , economics , management science , sociology , neoclassical economics , positive economics , political science , microeconomics , computer science , mathematics , psychology , social psychology , physics , optics , finance , human–computer interaction , law , mathematical analysis
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. Copyright © 2014 Strategic Management Society.