Expansion Without Merger: The Receding Managerial Limit

Edith Penrose

in The Theory of the Growth of the Firm

Third edition

Published in print September 1995 | ISBN: 9780198289777
Published online November 2003 | e-ISBN: 9780191596759 | DOI:
 Expansion Without Merger: The Receding Managerial Limit

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This chapter examines the fundamental and inescapable limits to the amount of expansion a firm can undertake at given time, when there is no rigid barrier to its expansion. It discusses the nature of the managerial limit, and the effects of uncertainly and risk. It shows that the firm cannot and will not extend its expansion plans, and with them its ‘management team’ in an effort to take advantage of all available market opportunities.

Keywords: expansion; firms; management

Chapter.  10204 words. 

Subjects: Microeconomics

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