The Origins of the Firm: Theoretical Insights and Empirical Evidence from Italian SMEs - A Preliminary Study

This paper explores the fundamental question of why firms exist by examining the theoretical and psychological drivers behind their emergence. Building on the foundational insights from behavioral and entrepreneurial perspectives, particularly the Theory of Planned Behavior and the Theory of Entrepreneurial Orientation, the paper also reviews alternative theoretical explanations from Ronald Coase’s Theory of Transaction Costs to Property Rights Theory, Resource-based View, and Evolutionary Economics. Using a quantitative methodology based on a sample of 111 Italian small and medium-sized enterprises (SMEs), this study empirically explores the underlying motivations behind firm creation. Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed to test the theoretical relationships. The findings indicate that attitude and subjective norms significantly influence the intention to establish a firm, whereas resource-based capabilities and perceived behavioral control little or no substantial effect. Through historical examples, theoretical frameworks, and empirical testing, the article concludes that firms emerge not only as efficient solutions to coordination problems but also as institutional responses to social, psychological, and entrepreneurial stimuli.