QUT ePrints

Organic and acquisitive employment growth : re-examining,testing and extending Penrose's Growth Theory.

Lockett, Andy, Wiklund, Johan, Davidsson, Per, & Girma, Sourafel (2011) Organic and acquisitive employment growth : re-examining,testing and extending Penrose's Growth Theory. Journal Of Management Studies, 48(1), pp. 48-74.

View at publisher

Abstract

Edith Penrose’s theory of firm growth postulates that a firm’s current growth rate will be influenced by the adjustment costs of, and changes to a firm’s productive opportunity set arising from, previous growth. Although she explicitly considered the impact of previous organic growth on current organic growth, she was largely silent about the impact of previous acquisitive growth. In this paper we extend Penrose’s work to examine that the relative impact of organic and acquisitive growth on the adjustment costs and productive opportunity set of the firm. Employing a panel of commercially active enterprises in Sweden over a 10 year period our results suggest the following. First, previous organic growth acts as a constraint on current organic growth. Second, previous acquisitive growth has a positive effect on current organic growth. We conclude that organic growth and acquisitive growth constitute two distinct strategic options facing the firm, which have a differential impact on the future organic growth of the firm.

Impact and interest:

13 citations in Scopus
Search Google Scholar™
7 citations in Web of Science®

Citation countsare sourced monthly from Scopus and Web of Science® citation databases.

These databases contain citations from different subsets of available publications and different time periods and thus the citation count from each is usually different. Some works are not in either database and no count is displayed. Scopus includes citations from articles published in 1996 onwards, and Web of Science® generally from 1980 onwards.

Citations counts from the Google Scholar™ indexing service can be viewed at the linked Google Scholar™ search.

Full-text downloads:

3,320 since deposited on 15 Oct 2009
1,246 in the past twelve months

Full-text downloadsdisplays the total number of times this work’s files (e.g., a PDF) have been downloaded from QUT ePrints as well as the number of downloads in the previous 365 days. The count includes downloads for all files if a work has more than one.

ID Code: 28021
Item Type: Journal Article
Keywords: acquisitive growth, organic growth, penrose, growth theory, resourced-based view
DOI: 10.1111/j.1467-6486.2009.00879.x
ISSN: 0022-2380
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300) > Entrepreneurship (150304)
Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300) > Organisation and Management Theory (150310)
Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300) > Organisational Planning and Management (150312)
Divisions: Current > Research Centres > Australian Centre for Entrepreneurship
Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Management
Copyright Owner: Copyright 2011 Blackwell Publishing Ltd and Society for Management Studies
Copyright Statement: The definitive version is available at www.blackwell-synergy.com
Deposited On: 15 Oct 2009 13:06
Last Modified: 01 Mar 2012 00:36

Export: EndNote | Dublin Core | BibTeX

Repository Staff Only: item control page