The Influence of Innovation in Tangible and Intangible Resource Allocation: A Qualitative Multi Case Study

Abstract

Considering the current turbulent macroeconomic environment, the aim of this research is to explore the influence of innovation in tangible and intangible resource allocation. The literature underlines that organizations are facing a revolution in their business processes. As such, there is a need to understand the value of knowledge resources and to identify ways to manage them. This paper explores the field of resource allocation, namely dynamic capabilities, and highlights the importance of monitoring intangible resources. This research has three specific contributions. The first contribution provides a comprehensive picture of what has occurred in the field of tangible and intangible resource allocation, such as intellectual capital and its importance towards organizational performance. Secondly, it offers evidence about the actual need for performance measurement tools that foster intangible resource monitoring. Organizations devote special attention to market demands which consequently lead managers to adapt their strategies in areas concerning resource allocation. Given this importance, this research, comprising major innovative organizations in Portugal from diverse activity sectors, provides new insights and stresses the importance of tools to follow the overall performance of resource allocation. Managers of innovative organizations recognize the very powerful features of the Balanced Scorecard (BSC) in monitoring and linking strategic resources of both tangible and intangible natures. Thirdly, this research, with a view to enrich the field of intangible natures, points out some aspects for future research areas, bearing in mind the relevance of this research area confirmed by managers of the major innovative organizations. Thus, it provides prominent information for both academia and innovative organizations.

The synergistic impact of market and technology orientations on sustainable innovation performance: evidence from manufacturing firms

“…According to this view, resources are “any tangible or intangible entity available to the firm that enables it to produce efficiently and/or effectively a market offering that has value for some market segment(s)” (Hunt and Morgan, 1995, p. 11). “For organizations to reach opportunities at the heart of the market, resources are assumed to be crucial” (Silva and Oliveira, 2020, p. 3). Resources “have been widely defined in the literature as all the various types of assets that enable a company to conceive and carry out strategies that improve its efficiency, effectiveness, and competitiveness” (Camelo-Ordaz et al.…”

Implementation of Balanced Scorecard

“…For managers, it is extremely relevant to have a guide to provide them an orientation of how to allocate resources, independently of being tangible or intangible (Silva & Oliveira, 2020).…”

Discovering the Intangible Innovation of Knowledge Sharing for Improving Rural Tourism Destinations' Competitiveness: A Collaborative Approach

“…Knowledge sharing is regarded as a critical component of developing one's competitive capabilities in the current competitive environment (Nickerson and Zenger, 2004). Due to the increasingly competitive environment, numerous previous studies have used the Resource Based View as the fundamental theory to underpin the research framework on innovation and knowledge as resources for organisational competency enhancement (Hansen and Schaltegger, 2016;Guenther and Heinicke, 2019;Silva and Oliveira, 2020). According to those studies, knowledge is considered an intangible resource that aids in the innovation process.…”

“…However, given today's enormous development and increasing challenges, particularly post-pandemic tourism development (Campón-Cerro et al, 2017), innovation has emerged as the primary factor that differentiates one rural tourism destination from another, particularly in determining a tourism destination's level of competency, and "knowledge" has long been recognised as the key to success (Albino et al, 2010). Previous research has repeatedly affirmed that innovation can be classified into tangible and intangible innovations (Fouad et al, 2017;Silva and Oliveira, 2020). Tangible innovation is related with physical products, whereas intangible innovation is associated with the knowledge, skills, and processes necessary to generate long-term value.…”