Organic and acquisitive growth : re-examining, testing and extending Penrose's Growth Theory
Lockett, Andy, Wiklund, Johan, Davidsson, Per and Girma, Sourafel. (2011) Organic and acquisitive growth : re-examining, testing and extending Penrose's Growth Theory. Journal of Management Studies, Vol.48 (No.1). pp. 48-74. ISSN 0022-2380Full text not available from this repository.
Official URL: http://dx.doi.org/10.1111/j.1467-6486.2009.00879.x
Edith Penrose's theory of firm growth postulates that a firm's current growth rate will be influenced by the adjustment costs of, and changes to a firm's productive opportunity set arising from, previous growth. Although she explicitly considered the effect of previous organic growth on current organic growth, she was largely silent about the effect of previous acquisitive growth. In this paper we extend Penrose's work to examine how previous rates of organic and acquisitive growth influence current organic growth. Employing a panel of Swedish firms over a 10-year period, our results suggest the following. First, previous organic growth acts as a constraint on current organic growth. Second, previous acquisitive growth has a positive effect on current organic growth. We conclude that organic growth and acquisitive growth constitute two distinct strategic options facing the firm, which have a differential impact on the future organic growth of the firm.
|Item Type:||Journal Article|
|Subjects:||H Social Sciences > HF Commerce|
|Divisions:||Faculty of Social Sciences > Warwick Business School > Centre for Small & Medium-Sized Enterprises
Faculty of Social Sciences > Warwick Business School > Entrepreneurship, Innovation & Management
Faculty of Social Sciences > Warwick Business School
|Journal or Publication Title:||Journal of Management Studies|
|Publisher:||Wiley-Blackwell Publishing Ltd.|
|Number of Pages:||27|
|Page Range:||pp. 48-74|
|Access rights to Published version:||Restricted or Subscription Access|
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