Edith Penrose, Organisational Economics and Business Strategy: An Assessment and Extension
Pitelis, Christos N.
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The article examines the career of Edith Penrose, who published the book "The Theory of the Growth of the Firm" in 1959. The author discusses the theory of the growth of firms (TGF), and how it relates to the size of firms, innovation, and productive opportunity. The author discusses why Penrose's work has become more influential in more modern work, and her views on organizational economics and business strategy. The article also examines some limitations and generalizations of TGF that inhibit its usefulness, such as the assumption that knowledge-related intra-firm advantages lead to growth.