Strategy development based on intangibles in SMEs – an integrated approach

Abstract

The approach in this paper is based on the principles of action research and rapid prototyping. The paper shows the current status of a ‘bottom-up’ research process dedicated to continuously developing and improving management instruments that suit the requirements of small and medium-sized enterprises (SMEs): pragmatic, easy-to-use and generating direct practical benefit. As a result, this paper links the concept of intangibles to the practical strategy development process in SMEs. The integration shown concerns several challenges: (1) Integrate the internal and external perspective on intangibles, and, by that, link the concept of intellectual capital (IC) as a resource-based view with the concept of customer value as a market-based view. (2) Integrate the theoretical concept of IC with a methodology for comprehensive strategy development. (3) Integrate the formulation and implementation of business strategies taking into account the actual practice in SMEs.