‘Inherited’ Resources and the Direction of Expansion

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:
 ‘Inherited’ Resources and the Direction of Expansion

Show Summary Details


This chapter examines the internal factors affecting the direction of expansion of firms. Internal obstacles arise when specialised services required for expansion in a particular direction are insufficient within the firm. Internal inducements arise from the existence of a pool of unused productive services, resources, and special knowledge. The reasons why there will always be unused productive services within a firm, and the significance of the existence of such services for ‘external’ opportunities for expansion are discussed.

Keywords: firms; expansion; internal obstacles; resources; services

Chapter.  10343 words. 

Subjects: Microeconomics

Full text: subscription required

How to subscribe Recommend to my Librarian

Buy this work at Oxford University Press »

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.