Its Contribution to Economic Growth, Well-being and Rationality
Chapter 5: The Impact of Organizational Capital on Economic Performance: Evidence from Netherlands-based Multinational Corporations
Bart Eikelenboom* INTRODUCTION An organization (or, more speciﬁcally in this chapter, a corporation) can be looked upon as a bundle of resources or capital.1 This perspective derives from the resource-based view (RBV) within the domain of strategic management. There are multiple classiﬁcations of an organization’s resources or capital. First is the distinction between the tangible and intangible assets of the corporation. Another distinction that has emerged in the RBV is the division between resources and capabilities (Makadok, 2001). A resource is an observable (but not necessarily tangible) asset that can be valued and traded – such as a brand, a patent, a parcel of land or a license. A capability on the other hand, is not observable (and hence necessarily intangible) and hard to value (Hoopes et al., 2003). A third classiﬁcation stems from Barney and Hesterly (1999) who distinguish several categories of a corporation’s capital: ● ● ● ● Physical capital: This is the physical manifestations of the technology used in a ﬁrm, a ﬁrm’s plant and equipment. Human capital: These are resources or capabilities linked to individuals associated with a ﬁrm. Organizational capital: This refers to the relationships among organization members (Tomer, 1987). Financial capital: This refers to the debt and equity ﬁnancing available to ﬁrms. The ﬁrst category is tangible; the second, human capital, is intangible and embodied in individuals. The standard human capital part of the latter includes the knowledge and skills that contribute to employees’ productive 64 Impact of organizational capital on economic performance 65 capacity (Becker,...
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