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

2001 peteraf and barney 2003 but what is less clear

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2001; Peteraf and Barney, 2003), but what is less clear is which specific resources need to be combined and in what way, in order to influence firm growth. According to Barney and Arikan (2001), empirical research conducted into the RBV has in the main supported it. Newbert (2007), however, argues that the methodology used to reach this conclusion was flawed and in their assessment of the literature find that only half of the tests were empirically supported. Newbert (2008) concludes that there is little direct empirical evidence for the RBV and that its acceptance is based upon its logic. However, Wiklund et al. (2009) argue that the RBV is important to consider when studying firm growth, while Peteraf and Barney (2003) suggest that both its strength and weakness are that it attributes firm 933 Principles of Penrose s (1959) theory Downloaded by Walden University At 08:15 13 November 2018 (PT)
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performance differences to internal firm variables. However, the transaction cost economics perspective argues that resources can be utilised externally to the organisations benefit (Teece, 1980), while Dyer and Singh (1998) argue that resources can span firm boundaries and be acquired from other firms, therefore suggesting that resources can also be bought in from other organisations. More recently, Yim et al. (2015) find that inter-firm relationships and relational strategies improve a firm s competitive position. Rugman and Verbeke (2002) argue that although there has been a large amount of research conducted based on the RBV, its definitions are still vague with no agreement as to what exactly a resource is. It has also been argued that the RBV does not explain how resources add to a firm s competitive advantage, meaning that it is vague and tautological (Priem and Butler, 2001). Arend and Levesque (2010) argue that future research needs to identify the exact resources that are crucial for organisations to prosper and analyse their process of development over time in order to identify how to develop them to their full value. Lockett and Wild (2014) also agree with this need for process-based research in the RBV literature and also argue that research exploring the RBV has tended to neglect the use of case studies, which is surprising given that it stems from Penrose s (1959) case study research. Salazar (2017) argues that it is important to analyse the interrelations between resources instead of looking at resources in a singular way. Almarri and Gardiner (2014) argue that the RBV needs to be integrated with other theories to overcome the shortcomings associated with it and that case study research may be the best way to achieve this. This research aims to add insight into each of these issues by identifying exactly which key resources are required for high growth and analysing their process of development through case study-based research. The research will use principles from the RBV of the firm as well as Penrose s principles and by considering more than one perspective, a more holistic framework will be created.
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  • Spring '14
  • Dr.SeanStanley
  • Qualitative Research, edith penrose

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