Edith T. Penrose: Economist of ‘The Ordinary Business of Life’

Pattit, Jason M. and Pattit, Katherina G. and Spender, J-C (2024): Edith T. Penrose: Economist of ‘The Ordinary Business of Life’.

Abstract

When Edith T. Penrose became Fritz Machlup’s student in the late-1940s, she found little in mainstream or Austrian economics to guide her as she began her explorations into the growth of the firm. While she acknowledged Kenneth Boulding’s influence on her work, we suspect she drew on a broader tradition that includes, among others, Alfred Marshall, Frank Knight (Boulding’s teacher), and Ronald Coase. We seek to demonstrate Penrose’s connection to this ‘invisible college’, particularly to Knight, and its influence on her investigation of the growth of the firm. Given mainstream economists’ pursuit of rigor at the expense of practical relevance and their continuing inattention to Coase’s work, we suggest Penrose’s work on the growth of the firm can be understood as part of a broader tradition represented by this ‘invisible college’, lending to useful new insights for business strategy and business ethics scholarship.

• Item Type: MPRA Paper
• Language: English
• Keywords: Edith T. Penrose, Frank Knight, Theory of the Firm, Management History
• Subjects: B - History of Economic Thought, Methodology, and Heterodox Approaches > B3 - History of Economic Thought: Individuals > B31 - Individuals; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M0 - General; N - Economic History > N8 - Micro-Business History

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