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STRATEGY AND ENTREPRENEURSHIP: OUTLINES OF AN UNTOLD STORY
Saras D. Sarasvathy
University of Washington
S. Venkataraman
University of Virginia
Invited book chapter in the Strategic Management Handbook edited by Hitt et.al.
(Revised December 10, 2000)
In his book “Invention,〞 Professor Norbert Wiener (1993), commenting on the relative
importance accorded to individuals and institutions in historical narratives of science and
inventions, asks us to imagine Shakespeare and Juliet’s “Romeo〞 without either Romeo or the
1
balcony. The story is just not the same. He likens much of the study of the economic history of
science and accounts of inventions as “all balcony and no Romeo.〞 The balcony for Norbert
Wiener captures the context in which the story unfolds –the culture, the institutions, the
constraints and the catalysts that move the plot forward and thicken it. Romeos, for Wiener, play
the leading parts in the story, because there is a strong fortuitous element to inventions and there
is no inevitability that a possible discovery will be made at a given time and space. Take away
either one, Romeo or the balcony, and the whole story falls apart. In a similar vein, we would
liken studies of strategic managementto “allbalcony and no Romeo.〞 But if we accuse
strategic managementof being “allbalcony and no Romeo,〞 strategic managementscholars
could legitimately accuse entrepreneurship of being “all Romeo and no balcony.〞
In this chapter we wish to suggest a point of view from entrepreneurship that will allow
strategic management
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