The paper examines the process of firm growth as an emerging area of entrepreneurship research and identifies ways of conceptualizing this process by combining an approach known as the resource-based view (RBV) with transaction cost theory (TCT). Contemporary research into company expansion focuses on the process of growth while recommending an inductive and exploratory approach, the author notes. However, this research area belongs to a broader strain of research into firm boundaries based on theories including RBV and TCT. In her paper, the author adopts what she calls a deductive method based on these two theories. The paper is based on a review of theoretical literature on firm boundaries developed in economics, entrepreneurship and strategic management. The author analyzes the resource-based view and transaction cost economics as alternative approaches to firm boundaries through a review of theoretical studies. She formulates conclusions about the process of company expansion based on a combination of the resource-based view and transaction cost theory. The author identifies the predictive value of the RBV and TCT with regard to the mechanisms and modes of growth. She also highlights a system of interactions between these two approaches in terms of variables and assumptions. According to Gancarczyk, the results of her research provide material for further theoretical and empirical studies.