The Theory of the Growth of the FirmWhy do some firms perform better than others? What enables a firm to grow and take advantage of its opportunities? Currently much discussion of these questions pivots around the ideas of competences and capabilities, and the concept of the learning organization or knowledge creating company. The Theory of the Growth of the Firm is a rich and pioneering work that addresses these questions and laid the foundation for this approach referred to as the 'resource-based view of the firm'. Penrose analyses managerial activities and decisions, organizational routines, and knowledge creation within the company and argues that they are critical to the ability of a firm to grow. Offering a different perspective to dominant equilibrium models and the competitive forces framework the book is a classic contribution to the theory of the firm and the development of our understanding of business strategy. For this new edition the author has written a new foreword which reviews the influences of her ideas and considers significant new developments such as the increased importance of the global firm and the rise of competition among alliances of firms which may call for a revision of the traditional approach to the relation between firms and markets. |
Contents
I | 1 |
Different ways of looking at firms | 9 |
THE PRODUCTIVE OPPORTUNITY OF THE FIRM AND | 31 |
Copyright | |
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ability acquiring firm acquisition advantage Alpha amount of expansion analysis areas assets become Beta capital changes Chapter competition concentration consumers Corporation cost demand discussion diversification economies of growth effect efficient enterprise entrepreneurs example existing firms existing products expansion plans expected extensive external fact factors factors of production Federal Trade Commission fields Fritz Machlup given product growth of firms important increase individual firm industrial firm innovation integration internal investment kind knowledge labour large firms larger firms least common multiple limit managerial services required merger merger and acquisition Motors Corporation obtain operations opportunity cost output particular firm personnel plant position possible problems productive activities productive opportunity productive services available profitable rate of growth reason reduce relation restrictions risk Roland Christensen scale sell significance small firms smaller specialized sumers technological theory tion uncertainty Unilever United unused productive services