%0 Journal Article %1 buckley2007eps %A Buckley, P.J. %A Casson, M. %D 2007 %I Springer %J Management International Review %K MBA globalization growth multinational_companies strategic_management strategy %N 2 %P 151--173 %T Edith Penrose’s Theory of the Growth of the Firm and the strategic management of multinational enterprises %U http://dx.doi.org/10.1007/s11575-007-0009-1 %V 47 %X This paper provides a formal model of Edith Penrose’s 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 Penrose’s 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. 1231–1241. 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. 47–73. 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. 241–262. CrossRef Coase, R. H., The Nature of the Firm, Economica, 4,4, 1937, pp. 387–405. Demsetz, H., Industrial Structure, Market Rivalry, and Public Policy, Journal of Law and Economics, 16,1, 1973, pp. 1–10. 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 3–19. 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. 23–32. CrossRef Kor, Y. Y./ Mahoney, J. T., Edith Penrose’s (1959) Contributions to the Resource-based View of Strategic Management, Journal of Management Studies, 41,1, 2004, pp. 183–191. 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. 418–438. CrossRef Lockett, A./ Thompson, S., Edith Penrose’s Contributions to the Resource-based View: An Alternative Perspective, Journal of Management Studies, 41,1, 2004, pp. 193–203. 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. 1–20. 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. 179–91. 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. 523–532 CrossRef Rugman, A. M./ Verbeke, A., Edith Penrose’s Contribution to the Resource-based View of Strategic Management, Strategic Management Journal, 23,7, 2002, pp. 769–80. CrossRef Rugman, A. M./ Verbeke, A., A Final Word on Edith Penrose, Journal of Management Studies, 41,1, 2004, pp. 205–217. 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. 223–233. CrossRef Vernon, R., International Investment and International Trade in the Product Cycle, Quarterly Journal of Economics, 80,2, 1966, pp. 190–207.

@article{buckley2007eps, abstract = {This paper provides a formal model of Edith Penrose’s 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 Penrose’s 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. 1231–1241. 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. 47–73. 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. 241–262. CrossRef Coase, R. H., The Nature of the Firm, Economica, 4,4, 1937, pp. 387–405. Demsetz, H., Industrial Structure, Market Rivalry, and Public Policy, Journal of Law and Economics, 16,1, 1973, pp. 1–10. 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 3–19. 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. 23–32. CrossRef Kor, Y. Y./ Mahoney, J. T., Edith Penrose’s (1959) Contributions to the Resource-based View of Strategic Management, Journal of Management Studies, 41,1, 2004, pp. 183–191. 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. 418–438. CrossRef Lockett, A./ Thompson, S., Edith Penrose’s Contributions to the Resource-based View: An Alternative Perspective, Journal of Management Studies, 41,1, 2004, pp. 193–203. 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. 1–20. 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. 179–91. 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. 523–532 CrossRef Rugman, A. M./ Verbeke, A., Edith Penrose’s Contribution to the Resource-based View of Strategic Management, Strategic Management Journal, 23,7, 2002, pp. 769–80. CrossRef Rugman, A. M./ Verbeke, A., A Final Word on Edith Penrose, Journal of Management Studies, 41,1, 2004, pp. 205–217. 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. 223–233. CrossRef Vernon, R., International Investment and International Trade in the Product Cycle, Quarterly Journal of Economics, 80,2, 1966, pp. 190–207.}, added-at = {2008-03-30T07:53:58.000+0200}, author = {Buckley, P.J. and Casson, M.}, biburl = {https://www.bibsonomy.org/bibtex/2d4e70505fa2b9caaa0162d1be698cd68/acf}, interhash = {9f8ba75a00722617f7115894de30092e}, intrahash = {d4e70505fa2b9caaa0162d1be698cd68}, journal = {Management International Review}, keywords = {MBA globalization growth multinational_companies strategic_management strategy}, number = 2, pages = {151--173}, publisher = {Springer}, timestamp = {2008-03-30T07:53:59.000+0200}, title = {{Edith Penrose’s Theory of the Growth of the Firm and the strategic management of multinational enterprises}}, url = {http://dx.doi.org/10.1007/s11575-007-0009-1}, volume = 47, year = 2007 }