Intangible Strategic Assets and Firm Performance: A Multi-Industry Study of The Resource-Based View

Abstract

According to the Resource-Based View (RBV), firms achieve a sustainablecompetitive advantage and earn superior profits by owning or controlling strategicassets. The RBV literature, Hall's empirical findings (1992, 1993), and othercorroborating literature indicate that certain intangible resources, such asreputation, know how, and organizational culture, possess the characteristics ofstrategic assets. This study empirically tests the relationship between theseintangible strategic assets and relative return on shareholders' equity using 100randomly selected Fortune 500 and Service 500 firms. The results are statisticallysignificant and strongly support RBV.