Accounting for performance variation: how important are intangible resources?
International Journal of Organizational Analysis
ISSN: 1934-8835
Article publication date: 1 May 2006
Abstract
Purpose
The purpose of this paper is to explore the degree to which intangible resources explain performance variation among firms.
Design/methodology/approach
The method includes a purpose‐designed survey to measure the impact of tangible resources, intangible resources and industry structure on firm performance.
Findings
The results suggest that, in the main, intangible resources do explain performance variation, even when measured against other potential performance impacting factors. Research limitations/implications – The results suggest that capabilities, conceptualized as an intangible resource, might not be the firm's most important, contrary to theory. Further, this study suggests that future research might best be served by exploring relationships between resources and the degree to which resource combinations are important to firm performance.
Practical implications
Resource allocation is a constant struggle for management. The results of this study suggest that investment in intangible resources might be a means to drive, and possibly sustain, competitive advantage.
Originality/value
This paper studies intangible resources in conjunction with other potential performance determinants, thus demonstrating a more stringent test of the resource‐based view of the firm than previous studies.
Keywords
Citation
Galbreath, J. and Galvin, P. (2006), "Accounting for performance variation: how important are intangible resources?", International Journal of Organizational Analysis, Vol. 14 No. 2, pp. 150-170. https://doi.org/10.1108/10553180610742773
Publisher
:Emerald Group Publishing Limited
Copyright © 2006, Emerald Group Publishing Limited