| Authors: |
P.J. Buckley
and M. Casson
|
| URL: |
http://dx.doi.org/10.1007/s11575-007-0009-1 |
| Tags: |
MBA
globalization
growth
multinational_companies
strategic_management
strategy
|
| Abstract: |
This paper provides a formal model of Edith Penroseâs Theory of
the Growth of the Firm which has important implications for the strategy
of multinational enterprises. The model provides an analysis of the
trade-off between product diversification and foreign market penetration.
It also can account for the speed of entry into foreign markets.
Formalizing Penroseâs Theory of the Growth of the Firm provides
an account of internationalization incorporating geographical expansion
patterns, sequential decision making and learning.
Key words Internationalization - Multinational Firms - Global Strategic
Management - Edith Penrose - Foreign Market Entry - Product Diversification
References Barney, J. B., Strategic Factor Markets, Management Science,
32,10, 1985, pp. 1231â1241. Baumol, W. J., Business Behavior, Value
and Growth, New York: Harcourt, Brace, Jovanovich 1967. Best, M.
H./ Humphries, J., Edith Penrose: A Feminist Economist?, Feminist
Economics, 9,1, 2003, pp. 47â73. CrossRef Buckley, P. J./ Casson,
M., The Future of the Multinational Enterprise, London: Macmillan
1976. Buckley, P. J./ Casson, M., The Theory of the Growth of the
Firm: Extending the Penrose Model, mimeo 2004. Caves, R. E./ Porter,
M. E., From Entry Barriers to Mobility Barriers: Conjectural Variations
and Contrived Deterrence to New Competition, Quarterly Journal of
Economics, 91,3, 1977, pp. 241â262. CrossRef Coase, R. H., The
Nature of the Firm, Economica, 4,4, 1937, pp. 387â405. Demsetz,
H., Industrial Structure, Market Rivalry, and Public Policy, Journal
of Law and Economics, 16,1, 1973, pp. 1â10. CrossRef Demsetz, H.,
Efficiency, Competition and Policy, Oxford: Basil Blackwell 1982.
Dunning, J. H., Trade, Location of Economic Activity and the Multinational
Enterprise: The Search for an Eclectic Approach, in Ohlin, B. et
al. (ededs.), The International Allocation of Economic Activity,
London: Macmillan 1977. Dunning, J. H., The Contribution of Edith
Penrose to International Business Scholarship, Management International
Review, 43,1, 2003, pp 3â19. Foss, N. J., Resources, Firms and
Strategies, Oxford: Oxford University Press 1997. Foss, N. J., Edith
Penrose, Economics and Strategic Management, in Pitelis, C. N. (ed.),
The Growth of the Firm: The Legacy of Edith Penrose, Oxford: Oxford
University Press 2002. Johanson J./ Vahlne, J. E., The Internationalisation
Process of the Firm: A Model of Knowledge Development and Increasing
Market Commitments, Journal of International Business Studies, 8,1,
1977, pp. 23â32. CrossRef Kor, Y. Y./ Mahoney, J. T., Edith Penroseâs
(1959) Contributions to the Resource-based View of Strategic Management,
Journal of Management Studies, 41,1, 2004, pp. 183â191. CrossRef
Lippman, S. A./ Rumelt, R. P., Uncertain Immutability: An Analysis
of Inter-firm Differences in Efficiency under Competition, Bell Journal
of Economics, 13,3, 1982, pp. 418â438. CrossRef Lockett, A./ Thompson,
S., Edith Penroseâs Contributions to the Resource-based View: An
Alternative Perspective, Journal of Management Studies, 41,1, 2004,
pp. 193â203. CrossRef Marris, R. L., Economic Theory of Managerial
Capitalism, London: Macmillan 1964. Penrose, E. T., The Theory of
the Growth of the Firm, Oxford: Blackwell 1959. Penrose, E. T., The
Growth of the Firm: A Case Study: The Hercules Powder Company, The
Business History Review, 34,1, 1960, pp. 1â20. CrossRef Penrose,
P./ Pitelis, C. N., Edith Elura Tilton Penrose: Life Contribution
and Influence, in Pitelis, C. N. (ed.), The Growth of the Firm: The
Legacy of Edith Penrose, Oxford: Oxford University Press 2002. Peteraf,
M. A., The Cornerstones of Competitive Advantage: A Resource-based
View, Strategic Management Journal, 14,3, 1993, pp. 179â91. Pitelis,
C. N. (ed.), The Growth of the Firm: The Legacy of Edith Penrose,
Oxford: Oxford University Press 2002. Pitelis, C. N., Edith Penrose
and the Resource-based View of (International) Business Strategy,
International Business Review, 13,4, 2002, pp. 523â532 CrossRef
Rugman, A. M./ Verbeke, A., Edith Penroseâs Contribution to the
Resource-based View of Strategic Management, Strategic Management
Journal, 23,7, 2002, pp. 769â80. CrossRef Rugman, A. M./ Verbeke,
A., A Final Word on Edith Penrose, Journal of Management Studies,
41,1, 2004, pp. 205â217. CrossRef Schumpeter, J. A., The Theory
of Economic Development, Cambridge, MA: Harvard University Press
1934. Teece, D. J., Economics of Scope and the Scope of the Enterprise,
Journal of Economic Behavior and Organization, 1,3, 1980, pp. 223â233.
CrossRef Vernon, R., International Investment and International Trade
in the Product Cycle, Quarterly Journal of Economics, 80,2, 1966,
pp. 190â207. |
@article{BuckleyEtAl2007Edith,
title = {{Edith Penroseâs Theory of the Growth of the Firm and the strategic
management of multinational enterprises}},
author = {P.J. Buckley and M. Casson},
journal = {Management International Review},
number = {2},
pages = {151--173},
publisher = {Springer},
url = {http://dx.doi.org/10.1007/s11575-007-0009-1},
volume = {47},
year = {2007},
abstract = {This paper provides a formal model of Edith Penroseâs Theory of
the Growth of the Firm which has important implications for the strategy
of multinational enterprises. The model provides an analysis of the
trade-off between product diversification and foreign market penetration.
It also can account for the speed of entry into foreign markets.
Formalizing Penroseâs Theory of the Growth of the Firm provides
an account of internationalization incorporating geographical expansion
patterns, sequential decision making and learning.
Key words Internationalization - Multinational Firms - Global Strategic
Management - Edith Penrose - Foreign Market Entry - Product Diversification
References Barney, J. B., Strategic Factor Markets, Management Science,
32,10, 1985, pp. 1231â1241. Baumol, W. J., Business Behavior, Value
and Growth, New York: Harcourt, Brace, Jovanovich 1967. Best, M.
H./ Humphries, J., Edith Penrose: A Feminist Economist?, Feminist
Economics, 9,1, 2003, pp. 47â73. CrossRef Buckley, P. J./ Casson,
M., The Future of the Multinational Enterprise, London: Macmillan
1976. Buckley, P. J./ Casson, M., The Theory of the Growth of the
Firm: Extending the Penrose Model, mimeo 2004. Caves, R. E./ Porter,
M. E., From Entry Barriers to Mobility Barriers: Conjectural Variations
and Contrived Deterrence to New Competition, Quarterly Journal of
Economics, 91,3, 1977, pp. 241â262. CrossRef Coase, R. H., The
Nature of the Firm, Economica, 4,4, 1937, pp. 387â405. Demsetz,
H., Industrial Structure, Market Rivalry, and Public Policy, Journal
of Law and Economics, 16,1, 1973, pp. 1â10. CrossRef Demsetz, H.,
Efficiency, Competition and Policy, Oxford: Basil Blackwell 1982.
Dunning, J. H., Trade, Location of Economic Activity and the Multinational
Enterprise: The Search for an Eclectic Approach, in Ohlin, B. et
al. (ededs.), The International Allocation of Economic Activity,
London: Macmillan 1977. Dunning, J. H., The Contribution of Edith
Penrose to International Business Scholarship, Management International
Review, 43,1, 2003, pp 3â19. Foss, N. J., Resources, Firms and
Strategies, Oxford: Oxford University Press 1997. Foss, N. J., Edith
Penrose, Economics and Strategic Management, in Pitelis, C. N. (ed.),
The Growth of the Firm: The Legacy of Edith Penrose, Oxford: Oxford
University Press 2002. Johanson J./ Vahlne, J. E., The Internationalisation
Process of the Firm: A Model of Knowledge Development and Increasing
Market Commitments, Journal of International Business Studies, 8,1,
1977, pp. 23â32. CrossRef Kor, Y. Y./ Mahoney, J. T., Edith Penroseâs
(1959) Contributions to the Resource-based View of Strategic Management,
Journal of Management Studies, 41,1, 2004, pp. 183â191. CrossRef
Lippman, S. A./ Rumelt, R. P., Uncertain Immutability: An Analysis
of Inter-firm Differences in Efficiency under Competition, Bell Journal
of Economics, 13,3, 1982, pp. 418â438. CrossRef Lockett, A./ Thompson,
S., Edith Penroseâs Contributions to the Resource-based View: An
Alternative Perspective, Journal of Management Studies, 41,1, 2004,
pp. 193â203. CrossRef Marris, R. L., Economic Theory of Managerial
Capitalism, London: Macmillan 1964. Penrose, E. T., The Theory of
the Growth of the Firm, Oxford: Blackwell 1959. Penrose, E. T., The
Growth of the Firm: A Case Study: The Hercules Powder Company, The
Business History Review, 34,1, 1960, pp. 1â20. CrossRef Penrose,
P./ Pitelis, C. N., Edith Elura Tilton Penrose: Life Contribution
and Influence, in Pitelis, C. N. (ed.), The Growth of the Firm: The
Legacy of Edith Penrose, Oxford: Oxford University Press 2002. Peteraf,
M. A., The Cornerstones of Competitive Advantage: A Resource-based
View, Strategic Management Journal, 14,3, 1993, pp. 179â91. Pitelis,
C. N. (ed.), The Growth of the Firm: The Legacy of Edith Penrose,
Oxford: Oxford University Press 2002. Pitelis, C. N., Edith Penrose
and the Resource-based View of (International) Business Strategy,
International Business Review, 13,4, 2002, pp. 523â532 CrossRef
Rugman, A. M./ Verbeke, A., Edith Penroseâs Contribution to the
Resource-based View of Strategic Management, Strategic Management
Journal, 23,7, 2002, pp. 769â80. CrossRef Rugman, A. M./ Verbeke,
A., A Final Word on Edith Penrose, Journal of Management Studies,
41,1, 2004, pp. 205â217. CrossRef Schumpeter, J. A., The Theory
of Economic Development, Cambridge, MA: Harvard University Press
1934. Teece, D. J., Economics of Scope and the Scope of the Enterprise,
Journal of Economic Behavior and Organization, 1,3, 1980, pp. 223â233.
CrossRef Vernon, R., International Investment and International Trade
in the Product Cycle, Quarterly Journal of Economics, 80,2, 1966,
pp. 190â207.},
timestamp = {2008.04.27}, owner = {test1},
keywords = {MBA globalization growth multinational_companies strategic_management strategy }
}
::