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

Sme growth literature it is generally accepted that

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SME growth literature It is generally accepted that small firms which do grow contribute greatly to the economy (Acs, 2006; Autio, 2007, 2012), and the greatest contributors are high growth small firms (Autio, 2005; Anyadike-Danes et al. , 2013). Holzland and Friesenbichler (2007) and Allman et al. (2011) argue that even though high growth firms play an essential role in economic development and employment, knowledge about them is extremely limited while Roper and Hart (2013, p. 11) argue that growth remains something of an enigma . Barringer et al. (2005) suggest that gaining knowledge on the attributes of high growth firms will greatly inform our knowledge of the attributes of normal growth firms. Ultimately despite the recognised value of extant research, there remains a considerable knowledge gap as to the process by which SMEs achieve growth and how policy makers and government bodies can support this (Bennett, 2008, 2012; Lee et al. , 2016). In an attempt to overcome this, Yandle (2014) created the growth platform model detailing 15 factors critical to the achievement of firm growth, their development over time and to what level they need to be developed to in order for growth to occur. This built upon Klofstens (2010) business platform model but for the start up to growth phase of development. The current research builds upon the growth platform model (Yandle, 2014) attempting to develop a theoretical framework to sit alongside it. This theoretical framework needs not only to be grounded in existing theories but also to merge and 931 Principles of Penrose s (1959) theory Downloaded by Walden University At 08:15 13 November 2018 (PT)
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extend them. Forson et al. (2014) argue that a conceptual framework is required that is able to bring together the various silos of work that have taken place in the field of small business. As such, a review is now undertaken of the most dominant theoretical perspectives in the firm growth literature. Theoretical perspectives on firm growth The theory of the growth of the firm (Penrose, 1959) By far, one of the most influential theories of firm growth is Penrose s (1959) The Theory of the Growth of the Firm , in which many ideas are presented that are centred on the processes of firm growth (Mahoney, 2005). Penrose s theory has been focussed upon due to the large number of academic papers published which cite Penrose s work (Rugman and Verbeke, 2002; Lockett et al. , 2007; Foss et al. , 2008; McKelvie and Wiklund, 2010; Nason et al. , 2012) and due to the influence it has had on current academic thought resulting in, for example, the development of the RBV of the firm (Wernerfelt, 1984). Penrose argues that the firm is a bundle of productive resources that can be combined in different ways to create different goods for sale, and this combination of resources is what makes the firm unique. The firm creates a learning environment for all those involved, which leads to new resources that can be used for further expansion, with material resources being of great importance. Penrose believes that internal limits on expansion include unused resources, lack of managerial familiarity and lack of specialised knowledge. Penrose (1959) views
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  • Spring '14
  • Dr.SeanStanley
  • Qualitative Research, edith penrose

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