A Theory of Entrepreneurial and Managerial Services: Revisiting Penrose from an Agency Perspective
31 Pages Posted: 24 Aug 2011
Date Written: April 1, 2010
Abstract
Using a parsimonious principal-agent model, this paper builds a theory of how responsibility for entrepreneurial and managerial services should be allocated among managers within a firm. The paper offers an alternative explanation for the Penrose effect, whereby firm growth is said to be retarded by the time required to assimilate new managers. The paper shows a combination of moral hazard and causal ambiguity can similarly retard firm growth.
Suggested Citation: Suggested Citation
Ross, David Gaddis, A Theory of Entrepreneurial and Managerial Services: Revisiting Penrose from an Agency Perspective (April 1, 2010). Available at SSRN: https://ssrn.com/abstract=1916137 or http://dx.doi.org/10.2139/ssrn.1916137
Do you have negative results from your research you’d like to share?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.