Asset‐light strategy, managerial ability, and corporate performance of the Asian telecommunications industry

Abstract

This paper examines the effects of asset‐light strategy on the corporate performance of listed Asian telecommunications corporations and the moderating effect of managerial ability on the association between asset‐light strategy and corporate performance. The study applies the dynamic slacks‐based measure (DSBM) model and Tobit regression to measure managerial ability. The empirical results show that asset‐light strategy positively affects corporate performance and that managerial ability has a significant moderating effect on the relationship between the degree of asset‐lightness (DAL) and corporate performance. The findings further show that the greater the managerial ability, the stronger the relationship between DAL and corporate performance.