IDEAS home Printed from https://ideas.repec.org/p/trn/utwpde/1018.html
   My bibliography  Save this paper

Organizational capital and firm performance. Empirical evidence for European firms

Author

Listed:
  • Claudia Tronconi
  • Giuseppe Vittucci Marzetti

Abstract

The paper assesses the impact of Organizational Capital (OC) on firm perfor- mance for a sample of European firms. OC is proxied by capitalizing an income statement item (SGA expenses). A rationale for this methodology is provided. Results are robust and show the strong effect of OC on firm performance.

Suggested Citation

  • Claudia Tronconi & Giuseppe Vittucci Marzetti, 2010. "Organizational capital and firm performance. Empirical evidence for European firms," Department of Economics Working Papers 1018, Department of Economics, University of Trento, Italia.
    • Handle: RePEc:trn:utwpde:1018
    as

    Download full text from publisher

    File URL: http://www.unitn.it/files/download/8303/18_10.tronconivittucci.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Sandra E. Black & Lisa M. Lynch, 2005. "Measuring Organizational Capital in the New Economy," NBER Chapters, in: Measuring Capital in the New Economy, pages 205-236, National Bureau of Economic Research, Inc.
    2. Jacques Mairesse & Mohamed Sassenou, 1991. "R&D Productivity: A Survey of Econometric Studies at the Firm Level," NBER Working Papers 3666, National Bureau of Economic Research, Inc.
    3. Francesco Aiello & Paola Cardamone, 2005. "R&D spillovers and productivity growth: evidence from Italian manufacturing microdata," Applied Economics Letters, Taylor & Francis Journals, vol. 12(10), pages 625-631.
    4. Sandro Montresor, 2004. "Resources, capabilities, competences and the theory of the firm," Journal of Economic Studies, Emerald Group Publishing, vol. 31(5), pages 409-434, October.
    5. Kim, H Youn, 1992. "The Translog Production Function and Variable Returns to Scale," The Review of Economics and Statistics, MIT Press, vol. 74(3), pages 546-552, August.
    6. Carol Corrado & John Haltiwanger & Daniel Sichel, 2005. "Measuring Capital in the New Economy," NBER Books, National Bureau of Economic Research, Inc, number corr05-1.
    7. Elizabeth Webster & Paul H. Jensen, 2006. "Investment in Intangible Capital: An Enterprise Perspective," The Economic Record, The Economic Society of Australia, vol. 82(256), pages 82-96, March.
    8. Baruch Lev & Suresh Radhakrishnan, 2005. "The Valuation of Organization Capital," NBER Chapters, in: Measuring Capital in the New Economy, pages 73-110, National Bureau of Economic Research, Inc.
    9. Supriyo De & Dilip Dutta, 2007. "Impact of Intangible Capital on Productivity and Growth: Lessons from the Indian Information Technology Software Industry," The Economic Record, The Economic Society of Australia, vol. 83(s1), pages 73-86, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hiroki Arato & Katsunori Yamada, 2012. "Japan's Intangible Capital and Valuation of Corporations in a Neoclassical Framework," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 15(4), pages 459-478, October.
    2. Rammer, Christian & Roth, Felix & Trunschke, Markus, 2020. "Measuring organisation capital at the firm level: A production function approach," ZEW Discussion Papers 20-021, ZEW - Leibniz Centre for European Economic Research.
    3. Wen Chen & Robert Inklaar, 2016. "Productivity spillovers of organization capital," Journal of Productivity Analysis, Springer, vol. 45(3), pages 229-245, June.
    4. Hiroki, Takashi & Iwatsubo, Kentaro & Watkins, Clinton, 2022. "Does firm-level productivity predict stock returns?," Pacific-Basin Finance Journal, Elsevier, vol. 72(C).
    5. Cui, Huijie & Dai, Lixuan & Zhang, Yanan, 2021. "Organization Capital and Corporate Innovation: Evidence from China," Finance Research Letters, Elsevier, vol. 43(C).
    6. HARADA Nobuyuki, 2014. "Intangible Investments and their Consequences: New evidence from unlisted Japanese companies," Discussion papers 14058, Research Institute of Economy, Trade and Industry (RIETI).
    7. Xing, Xuejing & Yan, Shan, 2023. "Does organization capital increase firm risk? Evidence from firms with human resource executives☆," Finance Research Letters, Elsevier, vol. 51(C).
    8. Wen Chen, 2018. "Cross‐Country Income Differences Revisited: Accounting for the Role of Intangible Capital," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(3), pages 626-648, September.
    9. Konan Chan & Mei‐Xuan Li & Chu‐Bin Lin & Yanzhi Wang, 2022. "Organization capital effect in stock returns—The role of R&D," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 49(7-8), pages 1237-1263, July.
    10. Shenglang Yang, 2016. "Intangible capital and sectoral energy intensity: Evidence from 40 economies," ANU Working Papers in Economics and Econometrics 2016-646, Australian National University, College of Business and Economics, School of Economics.
    11. MORIKAWA Masayuki, 2014. "Are Large Headquarters Unproductive? Evidence from a panel of Japanese companies," Discussion papers 14036, Research Institute of Economy, Trade and Industry (RIETI).
    12. Chiu, Junmao & Li, Yi-Hua & Kao, Tsai-Hsuan, 2022. "Does organization capital matter? An analysis of the performance implications of CEO power," The North American Journal of Economics and Finance, Elsevier, vol. 59(C).
    13. Morikawa, Masayuki, 2015. "Are large headquarters unproductive?," Journal of Economic Behavior & Organization, Elsevier, vol. 119(C), pages 422-436.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Najah Attig & Sean Cleary, 2015. "Managerial Practices and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 131(1), pages 121-136, September.
    2. Juan M. Sanchez & Emircan Yurdagul, 2013. "Why are U.S. firms holding so much cash? an exploration of cross-sectional variation," Review, Federal Reserve Bank of St. Louis, vol. 95(July), pages 293-325.
    3. Wen Chen & Robert Inklaar, 2016. "Productivity spillovers of organization capital," Journal of Productivity Analysis, Springer, vol. 45(3), pages 229-245, June.
    4. Alev Yildirim & Linda Allen, 2021. "Measuring systematic risk from managerial organization capital," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 48(9-10), pages 2049-2072, October.
    5. De, Supriyo, 2014. "Intangible capital and growth in the ‘new economy’: Implications of a multi-sector endogenous growth model," Structural Change and Economic Dynamics, Elsevier, vol. 28(C), pages 25-42.
    6. Ugur, Mehmet & Trushin, Eshref & Solomon, Edna & Guidi, Francesco, 2016. "R&D and productivity in OECD firms and industries: A hierarchical meta-regression analysis," Research Policy, Elsevier, vol. 45(10), pages 2069-2086.
    7. Ellen McGrattan, 2012. "Transition to FDI Openness: Reconciling Theory and Evidence," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 15(4), pages 437-458, October.
    8. McDowell, William C. & Peake, Whitney O. & Coder, LeAnne & Harris, Michael L., 2018. "Building small firm performance through intellectual capital development: Exploring innovation as the “black box”," Journal of Business Research, Elsevier, vol. 88(C), pages 321-327.
    9. Ellen McGrattan, 2012. "Transition to FDI Openness: Reconciling Theory and Evidence," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 15(4), pages 437-458, October.
    10. Qiu, Buhui & Wang, Teng, 2018. "Does Knowledge Protection Benefit Shareholders? Evidence from Stock Market Reaction and Firm Investment in Knowledge Assets," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 53(3), pages 1341-1370, June.
    11. Marie Le Mouel & Mariagrazia Squicciarini, 2015. "Cross-Country Estimates of Employment and Investment in Organisational Capital: A Task-Based Methodology Using Piaac Data," OECD Science, Technology and Industry Working Papers 2015/8, OECD Publishing.
    12. Roth, Felix & Sen, Ali & Rammer, Christian, 2021. "Intangible Capital and Firm-Level Productivity – Evidence from Germany," Hamburg Discussion Papers in International Economics 9, University of Hamburg, Department of Economics.
    13. Keun Lee & Tsutomu Miyagawa & Shigesaburo Kabe & Junhyup Lee & Hyoungjin Kim & Young Gak Kim, 2009. "Management Practices and Firm Performance in Japanese and Korean Firms," Microeconomics Working Papers 22990, East Asian Bureau of Economic Research.
    14. Charles R. Hulten & Xiaohui Hao, 2008. "What is a Company Really Worth? Intangible Capital and the "Market to Book Value" Puzzle," NBER Working Papers 14548, National Bureau of Economic Research, Inc.
    15. Hall, Bronwyn H. & Mairesse, Jacques & Mohnen, Pierre, 2010. "Measuring the Returns to R&D," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 1033-1082, Elsevier.
    16. B. Atrostic, 2008. "Measuring U.S. innovative activity: business data at the U.S. Census Bureau," The Journal of Technology Transfer, Springer, vol. 33(2), pages 153-171, April.
    17. Kenneth A. Younge & Matt Marx, 2016. "The Value of Employee Retention: Evidence From a Natural Experiment," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 25(3), pages 652-677, September.
    18. William Collier & Francis Green & Young-Bae Kim & John Peirson, 2011. "Education, Training and Economic Performance: Evidence from Establishment Survival Data," Journal of Labor Research, Springer, vol. 32(4), pages 336-361, December.
    19. Fanti, Lucrezia & Guarascio, Dario & Tubiana, Matteo, 2019. "Skill Gap, Mismatch, and the Dynamics of Italian Companies’ Productivity," MPRA Paper 95694, University Library of Munich, Germany.
    20. Vincent Delbecque & Sylvie Le Laidier & Jacques Mairesse & Laurence Nayman, 2011. "L’évaluation des investissements incorporels en France : méthodes et premiers résultats," Économie et Statistique, Programme National Persée, vol. 450(1), pages 3-27.

    More about this item

    Keywords

    Intangibles; Knowledge-based resources; Organizational capital; R&D capital stock; Translog production function;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D29 - Microeconomics - - Production and Organizations - - - Other
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:trn:utwpde:1018. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Luciano Andreozzi (email available below). General contact details of provider: https://edirc.repec.org/data/detreit.html .

    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.