IDEAS home Printed from https://ideas.repec.org/a/bla/stratm/v22y2001i2p157-177.html
   My bibliography  Save this article

Specificity and opacity as resource‐based determinants of capital structure: evidence for Spanish manufacturing firms

Author

Listed:
  • José David Vicente‐Lorente

Abstract

In this work we develop an analytical framework to examine the effects of strategic investments on the financial policy of the firm. From the resource‐based approach of the firm, nontradable and difficult‐to‐copy assets are the basis of a sustainable competitive advantage. However, imperfections in the resource markets can also be interpreted as sources of costs and/or restrictions from a financial point of view. Specificity and opacity are the features of strategic resources that enable us to identify the financial implications of the resource‐based strategy. We have tested our theoretical framework using a sample of Spanish nonfinancial firms. Our results show that highly specific and opaque resources limit the borrowing capacity of the firm, while other transparent strategic assets affect financial leverage positively. Our findings suggest two main implications for strategy formulation and implementation: (1) there are unobservable financial costs that must be considered for a correct evaluation of a sustainable competitive advantage based on strategic resources; and (2) the financial policy of a ‘resource‐driven’ firm is partially determined by the features of its strategic resource bundle. Copyright © 2001 John Wiley & Sons, Ltd.

Suggested Citation

  • José David Vicente‐Lorente, 2001. "Specificity and opacity as resource‐based determinants of capital structure: evidence for Spanish manufacturing firms," Strategic Management Journal, Wiley Blackwell, vol. 22(2), pages 157-177, February.
    • Handle: RePEc:bla:stratm:v:22:y:2001:i:2:p:157-177
    DOI: 10.1002/1097-0266(200101)22:23.0.CO;2-2
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/1097-0266(200101)22:23.0.CO;2-2
    Download Restriction: no
    File URL: https://libkey.io/10.1002/1097-0266(200101)22:23.0.CO;2-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:stratm:v:22:y:2001:i:2:p:157-177. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1111/0143-2095 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.