Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Reconceptualising the principles of Penrose’s (1959) theory and the resource based view of the firm

Reconceptualising the principles of Penrose’s (1959) theory and the resource based view of the firm The purpose of this paper is to develop a conceptual framework to explain the firm growth process based on an integration and extension, through empirical research, of Penrose’s theory of the growth of the firm and the resource-based view. Theoretical development within the firm growth literature has been noticeably limited. Firm growth studies use different theoretical bases and what is needed is integration of multiple theories and empirical testing of these to form a new conceptual framework capable of explaining the modern growth process fully.Design/methodology/approachThe key perspectives are critically reviewed and integrated and empirical qualitative research is undertaken analysing the process of growth in two firms. Semi-structured interviews, participant observation and analysis of company documentation are utilised.FindingsThe key insight this research provides is detailed information with regard to which resources, mediators and outputs are vital to firm growth, how they need to be developed and why this is the case. The study shows that these act in a cyclical nature to enable firm growth and development.Practical implicationsThese findings could be used by practitioners to determine which part of the conceptual framework requires the most amount of improvement and which are developed to an acceptable state, enabling them to make plans for the achievement of growth.Originality/valueThis research is able to reconceptualise two dominant theoretical perspectives resulting in the generation of a new firm growth framework, thereby addressing a distinct gap in the firm growth literature. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Small Business and Enterprise Development Emerald Publishing

Reconceptualising the principles of Penrose’s (1959) theory and the resource based view of the firm

Download PDF
30 pages

Loading next page...
 
/lp/emerald-publishing/reconceptualising-the-principles-of-penrose-s-1959-theory-and-the-aBBpEgh3SY

References (87)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1462-6004
DOI
10.1108/jsbed-11-2017-0361
Publisher site
See Article on Publisher Site

Abstract

The purpose of this paper is to develop a conceptual framework to explain the firm growth process based on an integration and extension, through empirical research, of Penrose’s theory of the growth of the firm and the resource-based view. Theoretical development within the firm growth literature has been noticeably limited. Firm growth studies use different theoretical bases and what is needed is integration of multiple theories and empirical testing of these to form a new conceptual framework capable of explaining the modern growth process fully.Design/methodology/approachThe key perspectives are critically reviewed and integrated and empirical qualitative research is undertaken analysing the process of growth in two firms. Semi-structured interviews, participant observation and analysis of company documentation are utilised.FindingsThe key insight this research provides is detailed information with regard to which resources, mediators and outputs are vital to firm growth, how they need to be developed and why this is the case. The study shows that these act in a cyclical nature to enable firm growth and development.Practical implicationsThese findings could be used by practitioners to determine which part of the conceptual framework requires the most amount of improvement and which are developed to an acceptable state, enabling them to make plans for the achievement of growth.Originality/valueThis research is able to reconceptualise two dominant theoretical perspectives resulting in the generation of a new firm growth framework, thereby addressing a distinct gap in the firm growth literature.

Journal

Journal of Small Business and Enterprise Development – Emerald Publishing

Published: Oct 25, 2018

Keywords: Penrose; RBV; Framework; Growth theory

There are no references for this article.