Abstract
How do capabilities-based resources focused on customers, supply chains, and how does innovation impact a firm’s strategic assets and performance? We develop a framework to (1) test strategic resource allocations as investments in future opportunities, (2) examine the influences of strategic resources on strategic assets, and (3) study the effects of strategic assets on performance. The model incorporates data from a 12-year period to examine the lagged effects over a “strategic” length period. The results show that the resources that affect assets include business-to-customer (B2C) marketing expenditures, sourcing attentiveness, inventory readiness, production capacity, and overall innovation creativity. Customer satisfaction and brand equity are two firm-level strategic assets that influence financial performance. The robustness of the overall results was also examined in two technological contexts (low/stable vs. high tech).
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