Define the concept of synergy and how it relates to management of organizations?

The concept of synergyis at the core of resource-based thinking, dating back to Edith

Penrose's seminal contribution. More specifically Penrose (1959), without using the actual

Word though, was concerned with two forms of synergy: the possibility of sharing particu-

larly managerial resources, which is brought about due to inevitable indivisibilities of

resources, and transfer of excess (and limitedly tradeable) resources. According to Porter

(1987) those are the only kinds of synergy available to firms, but this paper will hopefully

make it clear that his conception is too narrow in scope.