Contributions of Huerta de Soto to the Understanding of the Firm

This article analyzes Prof. Huerta de Soto’s contributions to entrepreneurship, focusing on their relevance for understanding the firm and its internal organization. While his conception of Perceptiveness and his Theory of Dynamic Efficiency are usually applied to explain the market process, I argue that they also provide a coherent explanation of entrepreneurship within firms. Entrepreneurs are perceptive agents who create particular arrangements of resources to achieve desired ends. Firms, therefore, emerge as a consequence of entrepreneurial perception, pursuing profits in the market economy. Huerta de Soto’s approach highlights how dynamic efficiency and entrepreneurial knowledge shape the internal organization of firms, combining planning and command with employee creativity. This study fills a gap in the Austrian School by applying Huerta de Soto’s framework to the theory of the firm, advancing the understanding of entrepreneurship, organizational design, and the coordination of knowledge.