According to the Resource-Based View (RBV), firms achieve a sustainable
competitive advantage and earn superior profits by owning or controlling strategic
assets. The RBV literature, Hall's empirical findings (1992, 1993), and other
corroborating literature indicate that certain intangible resources, such as
reputation, know how, and organizational culture, possess the characteristics of
strategic assets. This study empirically tests the relationship between these
intangible strategic assets and relative return on shareholders' equity using 100
randomly selected Fortune 500 and Service 500 firms. The results are statistically
significant and strongly support RBV.
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