The Hart Asset at the Heart of Your Organisation
6 Pages Posted: 11 Dec 2020
Date Written: November 27, 2020
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: Suggested Citation