Beyond strategy: a critical review of Penrose’s ‘single argument’ and its implications for economic development

Abstract

This paper offers a critical review of the ‘single argument’ that underpins Penrose’s (1959) study, The Theory of the Growth of the Firm (TGF) It aims to complement and counter-point recent examinations of Penrose’s influence on strategic management, and on the resource-based view (RBV) in particular, including Jacobsen’s (2011) study. The paper examines six components of the argument, tracing their inter-connected journey towards TGF’s relatively neglected final chapters, which address the economic consequences of the growth of large firms. It also reflects on the implications for economic development research, with reference to Penrose’s later (1992) critique of contemporary liberalisation policies.