Strategic Resources and Firm Performance: An Application of the Resource Based View

Under the influence of the framework that defines the Resource Based View, the purpose of this paper is to examine the contribution of the strategic resources (intellectual capital) that create value for the firm. More specifically, we assess the effect of intellectual capital on operating, financi...

Full description

Saved in:
Bibliographic Details
Main Authors: Rana Tanveer Hussain, Abdul Waheed
Format: Article
Language:English
Published: Lahore School of Economics 2019-05-01
Series:The Lahore Journal of Business
Subjects:
Online Access:https://journals.lahoreschool.edu.pk/LJB/LJB/article/view/74
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1850075079959904256
author Rana Tanveer Hussain
Abdul Waheed
author_facet Rana Tanveer Hussain
Abdul Waheed
author_sort Rana Tanveer Hussain
collection DOAJ
description Under the influence of the framework that defines the Resource Based View, the purpose of this paper is to examine the contribution of the strategic resources (intellectual capital) that create value for the firm. More specifically, we assess the effect of intellectual capital on operating, financial and stock market performance of the firms listed in the personal goods sector of Pakistan Stock Bourse, for the period of 2005 to 2014. The notion of intellectual capital is measured by intellectual capital efficiency, and the “value added intellectual coefficient” method proposed by Pulic (1998), which comprises of capital employed efficiency, human capital efficiency, and structural capital efficiency. The results depict that intellectual capital has a significant, positive effect on operating and financial performance of the firms, while capital employed resources have an insignificant, and mixed effect on operating and financial performance of the firms. This means that the more the firms will accumulate intellectual capital resources, the higher will be their operating and financial performance. Capital employed resources have a significant, positive effect on stock market performance of the firm, and intellectual capital also affects stock market performance, but this relationship is insignificant in nature. The accumulated effect of all the resources (physical & intellectual) shows a positive relationship with the performing areas of the firm in the sector.
format Article
id doaj-art-8dae62edcf8c4e1aaa0a91a86044aeed
institution DOAJ
issn 2223-0025
2791-3139
language English
publishDate 2019-05-01
publisher Lahore School of Economics
record_format Article
series The Lahore Journal of Business
spelling doaj-art-8dae62edcf8c4e1aaa0a91a86044aeed2025-08-20T02:46:24ZengLahore School of EconomicsThe Lahore Journal of Business2223-00252791-31392019-05-0172Strategic Resources and Firm Performance: An Application of the Resource Based ViewRana Tanveer Hussain0Abdul Waheed1School of Business and Management Sciences, Minhaj University, Lahore, Pakistan.Assistant Professor, UCP Business School, University of Central Punjab, Lahore, Pakistan. Under the influence of the framework that defines the Resource Based View, the purpose of this paper is to examine the contribution of the strategic resources (intellectual capital) that create value for the firm. More specifically, we assess the effect of intellectual capital on operating, financial and stock market performance of the firms listed in the personal goods sector of Pakistan Stock Bourse, for the period of 2005 to 2014. The notion of intellectual capital is measured by intellectual capital efficiency, and the “value added intellectual coefficient” method proposed by Pulic (1998), which comprises of capital employed efficiency, human capital efficiency, and structural capital efficiency. The results depict that intellectual capital has a significant, positive effect on operating and financial performance of the firms, while capital employed resources have an insignificant, and mixed effect on operating and financial performance of the firms. This means that the more the firms will accumulate intellectual capital resources, the higher will be their operating and financial performance. Capital employed resources have a significant, positive effect on stock market performance of the firm, and intellectual capital also affects stock market performance, but this relationship is insignificant in nature. The accumulated effect of all the resources (physical & intellectual) shows a positive relationship with the performing areas of the firm in the sector. https://journals.lahoreschool.edu.pk/LJB/LJB/article/view/74Resource based viewintellectual capitalcapital employed efficiencyhuman capital efficiencysocial capital efficiency
spellingShingle Rana Tanveer Hussain
Abdul Waheed
Strategic Resources and Firm Performance: An Application of the Resource Based View
The Lahore Journal of Business
Resource based view
intellectual capital
capital employed efficiency
human capital efficiency
social capital efficiency
title Strategic Resources and Firm Performance: An Application of the Resource Based View
title_full Strategic Resources and Firm Performance: An Application of the Resource Based View
title_fullStr Strategic Resources and Firm Performance: An Application of the Resource Based View
title_full_unstemmed Strategic Resources and Firm Performance: An Application of the Resource Based View
title_short Strategic Resources and Firm Performance: An Application of the Resource Based View
title_sort strategic resources and firm performance an application of the resource based view
topic Resource based view
intellectual capital
capital employed efficiency
human capital efficiency
social capital efficiency
url https://journals.lahoreschool.edu.pk/LJB/LJB/article/view/74
work_keys_str_mv AT ranatanveerhussain strategicresourcesandfirmperformanceanapplicationoftheresourcebasedview
AT abdulwaheed strategicresourcesandfirmperformanceanapplicationoftheresourcebasedview