A Heterodox Theory of the Business Enterprise

Jo, Tae-Hee. 2016. “A Heterodox Theory of the Business Enterprise.” MPRA Working Paper  72426. [Download the paper]

Note: This paper is an early draft of the chapter to be published in the Routledge Handbook of Heterodox Economics, edited by Tae-Hee Jo, Lynne Chester, and Carlo D’Ippoliti, 2017.

Abstract: The business enterprise directs and controls the social provisioning process. Enterprise decisions on price, investment, output and employment, in particular, directly affect the material basis of society as well as the material standard of living of working class households. The understanding the structure of and changes in the capitalist capitalists system thus requires a theory of the business enterprise that offers relevant and convincing explanations of business decisions and actions embedded in the wider social context. Such a theory must replace the mainstream-neoclassical theory of the firm, which is not only theoretically incoherent but also practically irrelevant since it confines itself to the hypothetical market structure and individual optimizing behavior. With this rationale this chapter attempts to build a heterodox theory of the business enterprises incorporating contributions made by various theoretical traditions in heterodox economics.

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Dr. Tae-Hee Jo

Associate Professor
Economics and Finance Department
SUNY Buffalo State
1300 Elmwood Ave. Buffalo, NY 14222 USA

o: Classroom Building B203
t: 716-878-4514
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e: taeheejo [at] gmail [dot] com

Fall 2019 office hours:
Tuesday/Thursday 12:30 – 1:30 and 4:00 – 5:00 PM


The Routledge Handbook of Heterodox Economics (2017)

Essays in Honor of Frederic S. Lee

Advancing the Frontiers of Heterodox Economics: Essays in Honor of Frederic S. Lee (2015)

Marx, Veblen, and Foundations of Heterodox Economics

Marx, Veblen, and the Foundations of Heterodox Economics: Essays in Honor of John F. Henry (2015)

Heterodox Analysis of Financial Crisis and Reform (2011)

Heterodox Analysis of Financial Crisis and Reform (2011)