How property rights economics furthers the resource-based view: Resources, transaction costs and entrepreneurial discovery

An understanding of Austrian entrepreneurship, in conjunction with property rights, resource-based and transaction costs theory allow us to understand economic rent generation as a dynamic process. The current paper expands Foss and Foss' (2005) application of property rights theory in explaining economic value creation to include not only economising on transaction costs, but also Austrian entrepreneurial discovery for generating new combinations and adaptive responses for transaction costs economising, particularly as a basis for managing strategic change.