Penrose, critical realism and the evolution of business knowledge: A methodological reappraisal

Abstract

This article examines the challenge of modifying orthodox ‘case study’ approaches to the growth of firms and interorganizational networks in the light of recent work on the evolution of business knowledge.We suggest that a modified Penrosian framework, combined with a qualified application of critical realist practices, could contribute to more coherent and insightful theorizing in this area.We begin with a critique of Edith Penrose’s legacy, including her efforts to initiate a historically informed tradition of social scientific research on the growth of the firm.We go on to consider the explanatory potential of critical realism, when adopted as a methodological adjunct to neo-Penrosian theorizing. Our main proposition is illustrated through a superfactual reinterpretation of certain aspects of the historical case study of the Rover Company (1896–1982) conducted by Richard Whipp and Peter Clark (1986).

Key words:

• critical realism
• Edith Penrose
• retroduction
• Rover
• superfactual