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

Resources identified are intangible and thus

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resources identified are intangible and thus highlight how difficult it can be for them to be identified and controlled. Aspirations, contacts, customers, open innovation, human capital, management, expertise and learning are all intangible assets, while finance and software are tangible assets. Therefore, the majority of firms resources are intangible, Resources 1: low 2: intermediate low 3: intermediate high 4: high Contacts The firm has a small number of contacts that are utilised in order to aid the firm s early development New contacts are gained in a \variety of areas and as such the network and contact base of the organisation increases The firm s relationship with their contacts reaches a high level as the products and services develop with face to face relationships and rapport. Contacts are evident in the areas of finance, government, suppliers, customers and informal contacts. These contacts provide advice, finance, knowledge and equipment New contacts are continually gained meaning that the firms contact base reaches a high level with a high variety of contacts in a wide variety of areas Systems and software The firm has a small amount of unofficial quality procedures The firms quality procedures begin to increase and relevant software packages are brought into the company Quality procedures are implemented to a high level and the firm s use of software increases which aids the firm s resources in functioning to a high level The firms processes begin to develop to a high level appropriate to, and in line with, their growth Customers The firm gains their first customer The firm s customer base begins to increase and so too does the firm and the customers understanding of what needs to be supplied. Customer relationships begin to develop The firms relationships with their customers reach a high level and knowledge sharing is vital The firms customer base begins to diversify and the quantity/quality of the firms customer base reaches a point whereby it is providing stable high revenue to the firm Table III. 943 Principles of Penrose s (1959) theory Downloaded by Walden University At 08:15 13 November 2018 (PT)
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which may be due to these firms being highly knowledge based. However, the use of the research methods employed in this study means that the influences of these less easily observable factors have been discovered. These intangible resources interact with the tangible resources to enable them to develop, i.e. human capital relationships affecting finance and product/service development. This again highlights that one factor cannot be considered without reference to the others. The resources are in a continuous state of development and it is this development which aids each factor in influencing the firm s growth. For instance, without continual development of the firms human capital and expertise the firm would be in a less advantageous position from which to develop products and services. This highlights the dynamic nature of the resource base. Some of the resources highlighted influence the firm
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  • Spring '14
  • Dr.SeanStanley
  • Qualitative Research, edith penrose

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