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.
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.
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|Item Type:||Journal Article|
|Keywords:||acquisitive growth, organic growth, penrose, growth theory, resourced-based view|
|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|
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