Is knowledge really the most important strategic resource? A meta‐analytic review

Research Summary The knowledge‐based view (KBV) claims that knowledge is the most important strategic resource because it is the strongest determinant of firm competitive advantage and the glue that pulls resources together. We examine this assertion through a meta‐analysis of the accumulated evidence on the relationships among strategic resources and firm performance (stock market, financial performance, and growth). Findings from 348 samples reporting 248,136 firm‐level observations show that knowledge resources have the highest positive association with all three performance dimensions, with the highest positive relationship with growth, followed by market and then financial performance. Further, knowledge may serve as a foundational resource by augmenting other strategic resources and helping make firms different. These findings support the KBV's core prediction that knowledge resources offer superior strategic value. Managerial Summary Managers need to understand what resources yield the strongest and most consistent returns. We examined the often‐invoked claim that knowledge is the most important resource associated with firm success. Our study combines evidence from over 300 samples and finds that knowledge‐based resources are consistently associated with the strongest profit, stock market, and growth returns relative to other types of resource investments. For managers, the message is clear—acquire, integrate, retain, and motivate knowledge‐related resources because doing so pays off.