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

Extant theoretical linkages with new empirical

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Extant theoretical linkages with new empirical framework 953 Principles of Penrose s (1959) theory Downloaded by Walden University At 08:15 13 November 2018 (PT)
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must be developed to the level at which they are providing the firm with revenue and new resources. It is the interaction of these resources, mediating factors and output factors which enable growth. This finding is important as it suggests that there is a pattern in the way in which factors influence growth, meaning that more structured research and policy decisions could take place focussing on these interactions. For instance in combination with the growth platform model, policy makers could analyse organisations to determine which areas of the framework organisations need the most support in. This could be in developing their resources, supporting the mediating factors or supporting the outputs. Crucially, the framework suggests that whichever area policy makers are able to provide support in then the other areas of the framework will benefit. This approach could be particularly beneficial to SME policy development as SME assistance is often personalised and one to one, something that this framework lends itself to well. Further work needs to take place in an attempt to transform these findings into a self-assessment tool for use by all SMEs. The majority of firm growth research identifies which factors may be of importance and some research works suggest how these factors influence growth but there is a distinct lack of integrative research which also analyses relationships and provides an explanation as to how factors enable growth. The framework developed through this research suggests a new context, in which to research and place firm growth variables and as such provides a base from which further research can stem. The framework was created with practicality in mind and therefore the framework should be able to be disseminated with its accompanying growth platform model (Yandle, 2014) to SME practitioners and policy makers, as well as being disseminated academically. The framework will be of use to practitioners as it enables them to understand how the different parts of their firm interact to enable firm growth to be achieved. This understanding enables an abstract process to be made concrete and observable. Practitioners could determine which parts of the conceptual framework require the most amount of improvement and which are developed to an acceptable state. However, further research is required in order to test this framework on a wider range of firms in order to test the level to which it can be generalised. For instance, are the same themes discovered as well as the same factors being encompassed beneath them? This research is a vital step in the right direction towards the generation of a new conceptual framework for firm growth theory that is capable of explaining firm growth in modern economic society. However, there are additional advances to be made and the framework generated through this research requires further testing and development.
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  • Spring '14
  • Dr.SeanStanley
  • Qualitative Research, edith penrose

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