Market valuation of intangible resources: The use of strategic human capital

Abstract

Economic theory posits that production factors that are both difficult to imitate and capable of creating organizational efficiencies can generate economic rents and sustain long-term competitive advantage. Using survey data for 106 firms, we measure four dimensions of strategic human capital and find that the market values strategic human capital that has the capability to create efficiencies in the organization and is also difficult for competitors to imitate. We discuss implications for the reporting of human capital in intellectual capital reports and offer suggestions for future research.

Citation

Bryant-Kutcher, L., Jones, D.A. and Widener, S.K. (2008), "Market valuation of intangible resources: The use of strategic human capital", Epstein, M.J. and Lee, J.Y. (Ed.) Advances in Management Accounting (Advances in Management Accounting, Vol. 17), Emerald Group Publishing Limited, Leeds, pp. 1-42. https://doi.org/10.1016/S1474-7871(08)17001-0