, Volume 47, Issue 2, pp 151-173

Edith Penrose’s Theory of the Growth of the Firm and the strategic management of multinational enterprises

Rent the article at a discount

Rent now

* Final gross prices may vary according to local VAT.

Get Access

Abstract and Key Results

  • This paper provides a formal model of Edith Penrose’s Theory of the Growth of the Firm which has important implications for the strategy of multinational enterprises.

  • The model provides an analysis of the trade-off between product diversification and foreign market penetration. It also can account for the speed of entry into foreign markets.

  • Formalizing Penrose’s Theory of the Growth of the Firm provides an account of internationalization incorporating geographical expansion patterns, sequential decision making and learning.