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.