Intangible Resources Analysis

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Any firm that consider creating a sustainable competitive advantage must create a strategy capitalizing on its resources tangible and intangible , prior this step the firm needs to identify ,assess its own sources of intangible resources and value it. This paper is concerned with the intangible resources and its effect on creating a sustainable competitive advantage .

Intangible resources has always been considered as a corner stone for developing strategies and framing identity to firms . Intangible resources is to be considered as the primary source for generating revenue to the firm. Today an increasing focus by companies to control their intangible assets and resources (Kaufmann and Schneider ,2004 ). A lot of definitions that were …show more content…

Classification
Itami, et al. (1991) Technology , accumulated consumer information ,Brand name , reputation & corporate culture )
“intangible assets are invisible assets that include a wide range of activities such as technology, consumer trust, brand image, corporate culture and management skills.”
Brooking, 1996; Edvinsson & Malone, 1997 ;Sveiby, 1997; Roos, 1998, Bontis et al. 2000 Human capital: a source of value through his knowledge and both, implicit and explicit knowledge.
Organizational capital : "all explicit knowledge produced by the organization, intellectual property (patents, licenses …), processes and formalized procedures. It represents the internal structure of the company, the infrastructure (technologies, methodologies, communication system…), processes and culture "
Relational capital: "the elements linking the organization with its customer or business relationships , external stakeholders such as suppliers, shareholders, external partners,& allies.
Hall, R. (1992) Intellectual property & Knowledge

Harrison, et al.( 2000) Intangibles such as reputation, customer loyalty, name recognition, leadership, and standard setting, and these are vitally dependent upon human capital to ensure repeat …show more content…

Technology patent Motion Picture films company systems Tools
Knowledge Mortgage servicing rights Import quotas
Relational Cpital
Supplier relationship Customer relationship Consumer trust Reputation
Customer Loyalty Trademarks Franchise Marketing rights
Brand name Advertising

Measuring intangible assets

On the financial side , Intangible assets are not well clearly stated in accounting sheets ( Saunders , Brynjolfsson , 2010) and in most of the cases it is treated as expenses not as an investment in the balance sheet ( Lev ,B 2001).

30% of all the business investments are rooted back the IT sector ˡ . In one of the known studies ,

it was found that spending one dollar of computer hardware is correlated to ten dollars of market value . These results concluded that there are nine dollars of unmeasured IT intangible assets for every dollar measured of hardware ( Brynjolfsson, Hitt, and Yang , 2002). A further study clearly reveals that

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