The Theory of the Growth of the Firm

The classic book from 1950s which paved the way for the resource-based view on the development of the firm. It outlines the primary factors which influence whether the firm will grow or fail. The most important contribution of this book to the later business and strategy theory has been the concept of the inherent management limit - it is the limited management capacity which is the primary limit for the business growth. The most valuable resources in any firm are the entrepreneurial and management resources.
Clear and logical conclusions, however when reading this book now, many of them seem rather trivial. This feeling is enhanced by Penrose's (author's) writing style - she tends to describe the same argument several times and remind of them later in the book. I would recommend to read the first three chapters which capture the main argument - the rest is becoming repetitive and specific.
The book might be especially interesting for the management consultants, those dealing with conceptualising M&A processes and business&strategy scholars. 

Review: The Theory of the Growth of the Firm

The classic book from 1950s which paved the way for the resource-based view on the development of the firm. It outlines the primary factors which influence whether the firm will grow or fail. The most ... Read full review