Organizational Capital and Firm Performance: Empirical Evidence for European Firms
9 Pages Posted: 15 Nov 2009 Last revised: 29 Nov 2009
Date Written: November 25, 2009
The paper assesses the impact of Organizational Capital (OC) on firm performance for a sample of European firms. OC is proxied by capitalizing an income statement item (SGA expenses). A rationale for this methodology is provided. The model is estimated in levels and first differences, and with different specifications (Cobb-Douglas and translog). Results are robust and show the strong effect of OC on firm performance.
Keywords: Intangibles, Knowledge-based resources, Organizational capital, R&D, Translog
JEL Classification: C210, D240, D290, L200
Suggested Citation: Suggested Citation