The Hart Asset at the Heart of Your Organisation

6 Pages Posted: 11 Dec 2020

Date Written: November 27, 2020

Abstract

What assets does a firm need to hold to develop a profitable business model? A ‘Hart asset’ is an asset that a firm cannot strategically afford a rival firm to own or control due to the risk of hold up, and therefore must be held within the firm, and upon which a profitable business model can be built. We tie the Hart asset to the problem of complementarities in profitable innovation, and conclude with an example Hart asset in digital platforms.

Keywords: strategic assets, theory of the firm, innovation, Oliver Hart

JEL Classification: D23, D86, L1, L2, M21

Suggested Citation

Davidson, Sinclair and Berg, Chris and Potts, Jason, The Hart Asset at the Heart of Your Organisation (November 27, 2020). Available at SSRN: https://ssrn.com/abstract=3738418 or http://dx.doi.org/10.2139/ssrn.3738418

Sinclair Davidson (Contact Author)

RMIT University ( email )

124 La Trobe Street
Melbourne, 3000
Australia

Chris Berg

RMIT University ( email )

124 La Trobe Street
Melbourne, 3000
Australia

Jason Potts

RMIT University ( email )

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