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The Growth of the Firm—A Case Study: The Hercules Powder Company

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  • Penrose, Edith T.
Abstract
Growth is governed by a creative and dynamic interaction between a firm's productive resources and its market opportunities. Available resources limit expansion; unused resources (including technological and entrepreneurial) stimulate and largely determine the direction of expansion. While product demand may exert a predominant short-term influence, over the long term any distinction between “supply” and “demand” determinants of growth becomes arbitrary.

Suggested Citation

  • Penrose, Edith T., 1960. "The Growth of the Firm—A Case Study: The Hercules Powder Company," Business History Review, Cambridge University Press, vol. 34(1), pages 1-23, April.
    • Handle: RePEc:cup:buhirw:v:34:y:1960:i:01:p:1-23_00
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