Abstract
In this research, we explored the relationship between investments in intangible resources and the performance of publicly traded banks. We applied a quantitative approach, based on hand-collected public data from banks’ financial statements of investments on intangible resources, combined with a history of trading and accounting values, covering the period from 2008 to 2015. The results suggest that investments in intangible resources provide superior performance. The banking sector is not particularly sensitive to investments on Human Intangible Resources (HR) and Relation Intangible Resources (RR), but respond in an economically significant way to investments on Structural or Organizational Intangible Resources (SR).
Highlights
In this paper, we examine how the investment in intangible resources by Brazilian publicly traded Banks affect their performance, in terms of accounting and market returns
There are four important shortcomings that limit the outreach of these contributions to theory: (a) they disregard the synergy between intangible assets by not focusing on a set of resources as drivers of organizational performance (BRAHIM; ARAB, 2011; KAMASAK, 2017); (b) they concentrate on case studies, relegating quantitative research to the background, which would contemplate more than one organization as unit of analysis, as well as longitudinal data (CHEN; DANBOLT; HOLLAND, 2014; YING; HASSAN; AHMAD, 2019); (c) they do not explore how intangible resources add value (ZIGAN, 2013); and d) they lack a multidisciplinary theoretical and methodological approach that takes into account scholars’ assumptions from different areas of knowledge (MOLLOY et al, 2011)
Given the difficulty to measure the individual impact of the investment in different categories of intangible resources individually, we propose our Hypothesis 1 by considering that the sum of investments in intangible resources affects organizational performance positively: H1: The higher the investment in intangible resources (HR, SR and RR), the higher the organizational performance
Summary
We examine how the investment in intangible resources (human, structural or organizational and relational) by Brazilian publicly traded Banks affect their performance, in terms of accounting and market returns. There are four important shortcomings that limit the outreach of these contributions to theory: (a) they disregard the synergy between intangible assets by not focusing on a set of resources as drivers of organizational performance (BRAHIM; ARAB, 2011; KAMASAK, 2017); (b) they concentrate on case studies, relegating quantitative research to the background, which would contemplate more than one organization as unit of analysis, as well as longitudinal data (CHEN; DANBOLT; HOLLAND, 2014; YING; HASSAN; AHMAD, 2019); (c) they do not explore how intangible resources add value (ZIGAN, 2013); and d) they lack a multidisciplinary theoretical and methodological approach that takes into account scholars’ assumptions from different areas of knowledge (MOLLOY et al, 2011) These limitations inhibit a better understanding of the relationship between intangible resources and organizational performance, as RBV states, consisting on an important research gap that this paper addresses. We show that the return to investments on HR are larger for larger Banks which have nationwide operations
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