An Essential Service in Penrose's Economies of Growth

Abstract

The strategic theory of resource-based view (RBV) put Penrose (1959) in the spotlight. The key to understanding Penrose's assertion is the concept of economies of growth independent of economies of size. According to Penrose, even when economies of size are not working, economies of growth exist regardless of size. Further, the economies of growth are temporary in nature and disappear once expansion is completed. In which managerial services are the economies of growth embodied? This paper hypothesizes that the economies of growth occur where there are unused start-up expert managerial services. Regardless of size, where these services exist, paving the company's way by step-by-step growth should produce profits.

Pure Dynamic Capabilities to Accomplish Economies of Growth

“…Furthermore, we summarize the concept of corporate capability based on the study by Helfat and Winter (2011). Further, we highlight the meaning of dynamic capabilities from the examples given therein, suggesting the possibility that dynamic capabilities are similar to the competencies of "start-up experts" that Takahashi (2015) discovered from Penrose (1959).…”

“…This book uses the concept of "economies of size" and "economies of growth" to answer the question regarding firms' growth. Thus, she focused on unused resources that create "economies of growth" to explain the reason for corporate growth (Takahashi, 2002(Takahashi, , 2015. Here, the concept of "economies of size" is primarily the same in conventional usage, with the average cost decreasing with an expansion in scale.…”

“…However, economies of growth are not always economies of size. Penrose (1959) Using the real-world example of organizations that specialize in corporate start-ups, Takahashi (2015) considered "resources that are unused in normal operations, and used only as corporations grow" to be unused managerial services. More specifically, Takahashi (2015) referred to "competencies for start-up experts" that are required to start new businesses.…”

Japanese Work Ethic and Culture

“…It also comprises those in middle management and lower ranks, as well as individual factory workers at plants, in some firms. In fact, veteran factory workers in Japanese firms, whether major corporations or medium-sized manufacturers, have created "start-up expert" services (Takahashi, 2002b(Takahashi, , 2015a…”

Four Side Views of Blue LED Patent Pricing

“…Consequently, several other lawsuits concerning inventor compensation were filed in Japan, paving the way for research into the evaluation of intellectual property rights, including patents (Goto & Nagaoka, 2003;Goto & Odagiri, 2003;Kikuchi, 2002;Okada, 2002;Takahashi, 2002).…”