ABSTRACT
Growth behaviour of the firm, in the E. T. Penrose' conception, is a matter of a historical process, and based on the cumulative effect of the firm's idiosyncratic knowledge and purposive investment decisions. Penrose argued that, regarding the idea of technological diseconomies, given the possibility of expansion by multi-plant operation, the technological diseconomies of scale did not seem, on theoretical grounds, satisfactory. Penrose observed that the collection of human and other productive resource endowments that each firm has at any particular time are unequal and firm-specific, and it is these unequal firm specific endowments that determine the set of opportunities of which it can take advantage. It should be pointed out that, given the hard core assumptions, the growth theory, like evolutionary theory, can be located between neoclassical research programme of 'situational determinism' and Austrian research programme of 'situational indeterminism'.
