Abstract and Key Results
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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.
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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.
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Formalizing Penrose’s Theory of the Growth of the Firm provides an account of internationalization incorporating geographical expansion patterns, sequential decision making and learning.
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Buckley, P.J., Casson, M. Edith Penrose’s Theory of the Growth of the Firm and the strategic management of multinational enterprises. MANAGE. INT. REV. 47, 151–173 (2007). https://doi.org/10.1007/s11575-007-0009-1
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DOI: https://doi.org/10.1007/s11575-007-0009-1