Edith Penrose: Firm

Edith Penrose was economist. Explore interesting quotes on firm.

Edith Penrose: 14 quotes0 likes

“A firm is essentially a pool of resources the utilization of which is organized in an administrative framework.”

p 149
The Theory of the Growth of the Firm, 1959

“A firm is more than an administrative unit; it is also a collection of productive resources the disposal of which between uses and over time is determined by administrative decision.”

Source: The Theory of the Growth of the Firm, 1959, p. 24

“Difficulties arise when an attempt is made to acclimatize the theory to an alien environment and, in particular, to adapt the analysis of the expansion of the innovating multi-product, ‘flesh and blood’ organisations that businessmen call firms.”

Source: The Theory of the Growth of the Firm, 1959, p. 13

“If profits are a condition of successful growth, but profits are sought primarily for the sake of the firm, that is, to reinvest in the firm rather than to reimburse owners for the use of their capital or their 'risk bearing,' then, from the point of view of investment policy, growth and profits become equivalent as the criteria for the selection of investment programmes.”

Source: The Theory of the Growth of the Firm, 1959, p. 30

“Internal inducements to expansion arise largely from the existence of a pool of unused productive services, resources and special knowledge, all of which will always be found within any firm.”

Source: The Theory of the Growth of the Firm, 1959, p. 66