Intellectual Capital and Firm Performance of U.S. Multinational Firms: A Study of the Resource-Based and Stakeholder Views
26 Pages Posted: 27 Jan 2003
Date Written: December 2002
The resource-based view of the firm maintains that firms achieve a sustainable comparative advantage and earn superior profits by owning or controlling tangible as well as intangible strategic assets. The stakeholder view recommends that a better measure of financial performance than accounting profit is the total wealth created or net value added. Accordingly, this study examines the relationship between a return on total assets based on net value added and the specific intangible asset of intellectual capital to test the resource view of the firm. The results using a sample of U.S. multinational firms are statistically significant in support of both the resource-based and stakeholder views.
Keywords: intellectual capital, value added reporting, resource-based view, stakeholder view
JEL Classification: M41, M44
Suggested Citation: Suggested Citation