Reconceptualising the principles of Penrose’s (1959) theory and the resource based view of the firm-

Research adds to penrose s theory through its

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research adds to Penrose s theory through its inclusion of externally oriented factors and thus highlights that the boundaries of the firm can now become more blurred. This research also accords with Penrose s argument for the importance of learning within the firm but highlights that this learning can come from within the firm but also externally to it. External resources provide knowledge, contacts, tangible equipment and finance. Penrose s theory was generated based upon case studies of large manufacturing firms and therefore the current research provides insight into the applicability of her claims in product-/service-/ knowledge-based SMEs. As highlighted above, this research not only accords with many of her principles but also offers slight additions to them especially with regard to importance of intangible resources, thereby confirming extant literature (Barney and Arikan, 2001; Riley and Robinson, 2011; Dal Borgo et al. , 2012). The key insight which this research provides with regard to the RBV is through the identification of exactly what resources are important to a firm s development, why this is the case and how these develop over a firm s life, insight called for by Arend and Levesque (2010) and Lockett and Wild (2014). This is an important distinction from the RBV which only state types of resources which are of importance. The identification of critical sweet spots for each resource in this research also suggests that resource-based research needs to analyse resources from a process-based view in order to understand how these resources 950 JSBED 25,6 Downloaded by Walden University At 08:15 13 November 2018 (PT)
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influence growth. This identification also enables more direct and focussed advice to be given to firms than the RBVs principles allow. Therefore, this research explains the interrelations between resources, insight called for by Salazar (2017). Similarly to Penrose s (1959) view, this research found that no-one resource was of primary importance but rather it was the combination of them which aided firm growth. This research does disagree with some of the RBV claims such as the argument that resources need to abide by certain principles in order to be a resource. This research discovered that a resource did not necessarily need to be rare, or hard to imitate in order to aid the firm, supporting Frery et al. s (2015) and Warnier et al. s (2013) research, but instead needed to reach a certain level of development in order to aid the firm. As such, this research argues that level of development is more important than uniqueness to the firm. Importantly, the research findings accord with Barney and Arikan (2001) who suggest that the firm needs things other than resources in order to achieve growth. A key insight is derived from the factors open innovation, human capital, expertise and contacts, which highlight that resources can also be gained from external sources. The importance of external resources suggests that resource development in the modern firm relies on
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  • Spring '14
  • Dr.SeanStanley
  • Qualitative Research, edith penrose

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