Edith Penrose's (1959) Contributions to the Resource-based View of Strategic Management

Abstract

ABSTRACTWe argue thatRugman and Verbeke (2002) underestimate the importance ofPenrose's (1959) contributions to the modern resource-based view of the firm. In particular, we take issue withRugman and Verbeke's (2002) arguments concerningPenrose's (1959) contributions to our knowledge of: (1) thecreationof competitive advantage, (2)sustainingcompetitive advantage, (3) isolating mechanisms, and (4) competitive advantage and economic rents. In our response, we show thatPenrose (1959) has bothdirectlyand indirectly influenced the modern resource-based view of strategic management.