ABSTRACT
In the resource-based view, the firm grows because it possesses distinctive, costly-to-copy resources (Barney 1991) that open ‘productive opportunities’ (Penrose 1959) for it to exploit. As the firm ‘sees’ and entrepreneurially exploits these opportunities, new business areas are opened, and the firm needs to undergo an administrative reorganisation to manage efficiently the new businesses created. In the resource-based view, the firm thus constitutes a ‘coherent administrative framework’ (Ghoshal et al. 1997) that manages internal and external resources or competencies for growth.
