Organic and acquisitive growth : re-examining, testing and extending Penrose’s growth theory

Lockett, Andy, Wiklund, Johan, Davidsson, Per, & Girma, Sourafel (2013) Organic and acquisitive growth : re-examining, testing and extending Penrose’s growth theory. In Davidsson, Per & Wiklund, Johan (Eds.) New Perspectives on Firm Growth. Edward Elgar Publishing, Cheltenham, UK, pp. 291-324.

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The Theory of the Growth of The Firm by Edith Penrose, first published in 1959, is a seminal contribution to the field of management. Penrose's intention was to create a theory of firm growth which was logically consistent and empirically tractable (Buckley and Casson, 2007). Much attention, however, has been focused on her unintended contribution to the resource-based view (henceforth RBV) (e.g. Kor and Mahoney, 2004; Lockett and Thompson, 2004) rather than her firm growth theory. We feel that this is unfortunate because despite a rapidly growing body of empirical work, conceptual advancement in growth studies has been limited (Davidsson and Wiklund, 2000; Davidsson et ai., 2006; Delmar, 1997; Storey, 1994).

The growth literature frequently references Penrose's work, but little explicit testing of her ideas has been undertaken. This is surprising given that Penrose's work remains the most comprehensive theory of growth to date. One explanation is that she did not formality present her arguments, favouring verbal exposition over formalized models (Lockett, 2005; Lockett and Thompson, 2004). However, the central propositions and conclusions of her theory can be operationalized and empirically tested.

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ID Code: 59547
Item Type: Book Chapter
Additional URLs:
Keywords: Organic Growth, Acquisitive Growth, Penrose’s Growth Theory
ISBN: 9780857933607
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300) > Entrepreneurship (150304)
Divisions: Current > Research Centres > Australian Centre for Entrepreneurship
Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Management
Copyright Owner: Copyright 2013 Edward Elgar Publishing
Deposited On: 01 May 2013 01:28
Last Modified: 22 Oct 2015 16:12

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