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Penrose, critical realism and the evolution of business knowledge

A methodological reappraisal

Queen Mary, University of London, p.a.clark{at}qmul.ac.uk

Richard Blundel

Brunel University, richard.blundel{at}brunel.ac.uk

This ar ticle 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 effor ts to initiate a historically informed tradition of social scientific research on the growth of the firm. We go on to consider the explanator y 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

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