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The bulk of the value of many modern businesses lies not in their physical assets but in their intangible capabilities.
Sustained growth can be achieved by leveraging your company's hidden assets, a wide array of underutilized, intangible capabilities and advantages that most established companies already possess.
The resource based view (RBV) of the firm highlights the importance of both tangible and intangible capabilities as the source of competitive advantage (Barney et al. 2001).
Such intangible capabilities include a better understanding of consumer concerns, a higher capability to create value for consumers and society (H1a/b: recycling convenience, eco-friendly practices), advanced technological capabilities (H1b: eco-friendly practices), and a low purchase risk from cheating and hidden quality problems (H1c: ethical behavior).
Based on signaling theory, our study suggests that CSR practices enable firms to signal intangible capabilities to consumers (also Frombrun et al. 2000; Su et al. 2016), which we posited to be of particular importance in the less transparent environment of developing countries, where information access is limited and information frequently is not trustworthy (Miller et al. 2009).
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The opposite happens when output heterogeneity and the use of intangible assets and capabilities increase.
As a result, many American companies invest too little, particularly in those intangible assets and capabilities required for competitiveness R&D, employee training and skills development, information systems, organizational development, and supplier relations.
Firm intangible resources and capabilities that dynamically enable organizations to adapt their resources to the evolution of the environment are an element of diversity among firms (Prahalad and Hamel 1990).
While the image of the oil and gas industry is that it is all about assets, competitive advantage generally results from a combination of tangible assets, capabilities, and intangible assets such as reputation and intellectual property (IP).
Accordingly, this study designs an empirical model for verifying the influence of intangible assets on innovative capability within the Taiwanese biopharmaceutical industry.
Therefore, it can be said that where the most businesses emphasize only on the entrepreneurs' international experience in the international markets, intangible resources such as innovation capability and market capability can improve the internationalization speed of EBSs.
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