In this lecture, we explore Edith Penrose’s groundbreaking work The Theory of the Growth of the Firm and her lasting impact on strategy. Penrose reframed the firm as a bundle of resources whose growth is shaped by managerial limits, learning, and the redeployment of capabilities. We look at how her insights anticipated the resource-based view of strategy and remain relevant for understanding both opportunities and constraints in corporate growth. Through examples from 3M to Amazon, the episode shows how Penrose’s ideas help us see growth not just as expansion, but as a dynamic process rooted in resources, capacity, and responsibility.