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2928. Selecting and Switching Knowledge Assets for the Firm Growth and Performance

Invited abstract in session WB-8: Applications of Knowledge and Technology, stream Knowledge, Technology, and Innovation.

Wednesday, 10:30-12:00
Room: 1020 (building: 202)

Authors (first author is the speaker)

1. A. D. Amar
Management Department, Seton Hall University

Abstract

Due to the emergence of robotics and autonomics, there has been a burst of interest in understanding the relationship between knowledge assets and firm performance. It is also observed that firms are keen to enhance performance by managing knowledge assets. On the research side, while much effort is going into this problem, clearcut answers have yet not come out. This research works on optimal answer to this problem by manipulating knowledge assets in their four prevalent forms, i.e., research and development, capital expenditure, selling, general, and administrative expenses, and property, plant, and equipment. We take performance as given by the rates of growth in seven most common metrics, i.e., revenue growth, cost of revenue, earnings from interest and taxes, profit, gross profit margin, cash flow, and times interest earned ratio. We formulate four hypotheses and conduct twenty-eight tests linking four knowledge assets to seven performance metrics. Using data from IT industries belonging to the SIC Code 737, we study the relationships and find that for different metrics, there are different knowledge assets. There is no one knowledge asset that will work for all performance metrics. It is true even for R&D. Therefore, to find the right knowledge asset for the desired performance metric, we design search methods employing selection maps to apply our findings to show how to strategically assign resources to the four knowledge assets for getting any targeted performance.

Keywords

Status: accepted

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