The Theory of the Growth of the Firm or Psychological Capital

The Theory of the Growth of the Firm

Author: Edith Tilton Penros

Why do some firms perform better than others? What enables a firm to grow and take advantage of its opportunities?
Currently much discussion of these questions pivots around the ideas of competencies and capabilities, and the concept of the learning organization or knowledge-creating company. The Theory of the Growth of the Firm is a rich and pioneering work that addresses these questions and laid the foundation for this approach often referred to as the "resource based view of the firm." Edith Penrose analyzes managerial activities and decisions, organizational routines, and knowledge creation within the company and argues that they are critical to the ability of a firm to grow.

Table of Contents:

Foreword, Edith Penrose (1955)

Preface

1. Introduction

2. The Firm in Theory

3. The Productive Opportunity of the Firm and the 'Entrepreneur'

4. Expansion Without Merger: The Receding Managerial Limit

5. 'Inherited' Resources and the Direction of Expansion

6. The Economies of Size and the Economies of Growth

7. The Economics of Diversification

8. Expansion Through Acquisition and Merger

9. The Rate of Growth of Firms Through Time

10. The Position of Large and Small Firms in a Growing Economy

11. Growing Firms in a Growing Economy: The Process of Industrial Concentration and the Pattern of Dominance

See also: Off the Shelf Cooking or A Nantucket Christmas

Psychological Capital: Developing the Human Competitive Edge

Author: Fred Luthans

Although there are as many answers to the question of how organizations can gain competitive advantage in today's global economy as there are books and experts, one lesson seems very clear: traditional answers and resources are no longer sufficient. This seminal book offers not only an answer regarding how to gain competitive advantage through people, but also a brand new, untapped human resource--psychological capital, or simply PsyCap. Generated from both the positive psychology movement and the authors' pioneering work on positive organizational behavior, PsyCap goes beyond traditionally recognized human and social capital. But PsyCap is not a vague or unscientific concept: to be included in PsyCap, a given positive construct must be based on theory, research, and valid measurement, must be open to development, and must have measurable performance impact. The positive constructs that have been determined to best meet these PsyCap criteria, efficacy (confidence), hope, optimism, and resiliency, are covered in separate chapters in Psychological Capital. After exploring other potential positive constructs such as creativity, wisdom, well being, flow, humor, gratitude, forgiveness, emotional intelligence, spirituality, authenticity, and courage, the authors summarize the research demonstrating the performance impact of PsyCap. They go on to provide the PsyCap Questionnaire (PCQ) as a measurement tool, and the PsyCap Intervention (PCI) as a development aid. Utility analysis indicates that investing in the development of PsyCap as presented in this book can result in a very substantial return. In total, Psychological Capital provides theory, research, measurements, andmethods of application for the new resource of psychological capital, a resource that can be developed and sustained for competitive advantage.