The Role of a Manager’s Intangible Capabilities in Resource Acquisition and Sustainable Competitive Performance

Qianwei Ying,Hazrat Hassan,Habib Ahmad

doi:10.3390/su11020527

Qianwei Ying, Hazrat Hassan + Show 1 more

Open Access

https://doi.org/10.3390/su11020527

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Journal: Sustainability	Publication Date: Jan 19, 2019
Citations: 74	License type: CC BY 4.0

Affiliation: Sichuan University, Hamdard University

Abstract

The answer to the challenging question, “Should one either invest in tangible resources or intangible resources/capabilities?” is still fragmented. In prior studies, more emphasis is given to tangible resources, while intangible resources have comparatively received minor attention, despite their significant role in the success of small and medium enterprises (SMEs). Particularly the role of the intangible skills; intellectual capital, financial literacy (FL), and business experience (BE) in resource acquisition and sustainable competitive performance has missed in prior studies. Grounded on the resource-based view and upper echelon theory, this study examines the role of intellectual capital in sustainable competitive performance with a mediating role of resource acquisition. This research also assesses the moderating role of financial literacy and business experience between intellectual capital and resource acquisition. Data are collected through structured questionnaires from 384 owners/managers of Pakistani SMEs. After analyzing the data through structural equation modeling (SEM), the results indicate that intellectual capital helps managers in acquiring valuable resources, which in turn enhance sustainable competitive performance. Resource acquisition partially mediates the relation between intellectual capital and sustainable competitive performance. Financial literacy is a significant predictor of resource acquisition, but it does not significantly moderate the relation between intellectual capital and sustainable competitive performance. Business experience significantly boosts the acquisition of resources and strengthens the path between intellectual capital and resource acquisition. SMEs should encourage their managers to acquire unique, rare, and immutable external resources in the turbulent markets.

Highlights

In the current era of globalization, firms must have ample tangible and intangible resources to survive in the long run
Little is known about the role of intangible skills in acquiring external resources that are essential for competitiveness
Based on the Resource base view (RBV) and upper echelon theory, this study examines the role of intellectual capital (IC) in sustainable competitive performance (SCP) with a mediating role of resource acquisition

Summary

Introduction

In the current era of globalization, firms must have ample tangible and intangible resources to survive in the long run. A plethora of research has confirmed the significant influence of resources on firms’ performance (e.g., [3,4,5]). Acquiring resources such as land, equipment, machineries, information, finance, technology, and customers is a great challenge for business organizations. Though a few studies (e.g., [6,7,8]) have investigated how firms’ internal capabilities can facilitate access to external resources, the results are still fragmented. The question of how to acquire unique, rare, and immutable external resources is still under-discussed in the context of intangible management skills. These skills and capabilities (e.g., IC, financial literacy, and business experience) are essential for SMEs, as they do not have enough tangible resources (e.g., finance and technology) to acquire the external tangible and intangible resources to sustain their performance [4,9]

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