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A firm is essentially a pool of resources the utilization of which is organized in an administrative framework.

— Edith Penrose

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More quotes by Edith Penrose

Management tries to make the best use of the resources available.

Internal inducements to expansion arise largely from the existence of a pool of unused productive services, resources and special knowledge, all of which will always be found within any firm.

A firm is more than an administrative unit; it is also a collection of productive resources the disposal of which between uses and over time is determined by administrative decision.

There is no need to deny that other 'objectives' are often important—power, prestige, public approval, or the mere love of the game— it need only be recognized that the attainment of these ends more often than not is associated directly with the ability to make profits.

Difficulties arise when an attempt is made to acclimatize the theory to an alien environment and, in particular, to adapt the analysis of the expansion of the innovating multi-product, ‘flesh and blood’ organisations that businessmen call firms.

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Quote text and notes from Wikiquote: Edith Penrose (page history), available under CC BY-SA 4.0. Source quality and labels are our own summary of what Wikiquote records.