THE CHANGING ROLE OF INTANGIBLES OVER THE ECONOMIC CRISIS

Starting a new stage of the research project in the frame of

the Lab “Intangible Driver of the New Economy”

Things expected to be achieved…

To conduct empirical study following “right” way from design and theoretical foundation to result interpretation and discussion

To base on the results established on the previous stage validating, improving methodology and going deeper in the interpretation

To take into account most of the shortcomings and mistakes made on previous stage

The Idea

Apparently, most of the success factors of

companies change across economic fluctuations

Companies have to be aware of the potentially

effective investment strategies (being the

common representative of the country, industry)

Empirically validate the drivers of companies success Compare and establish statistically significant difference in the models of value creation before, during and after the crisis Provide the insight into established cohesion, interpret the results and draw recommendations for policy makers

We can contribute by conducting the following analysis

Research Framework

Key Issues

Microfoundation of companies’ investment policy influenced by exogenous shocks

identification of value drivers under changing economic conditions

identification of country and industry effectsEmphasis on intangibles as key production factors

study of the interrelation of these resources

study of the return to scale

Exploration of the following cohesion

Interrelated Intangible Resources

Enhancer & Obstructer (external ones)

Company’s Value

Research Framework

The Analysis to be conducted

Design of the specificationsusing theoretical background – production function

underlying the role of the intangiblesincluding all relevant control variables

Validation of the proxies of IC and Value creation

starting from the critical analysis of literature

validating statistically by implementing SEM and hedonic approach

Research Framework

The Analysis to be conducted

Conducting statistical analysis of the sample and subsamples

cluster analysis

correlation analysis (including cross-panel analysis to establish time lag effects – important for “investment issues”)

Conducting SEM, HLM, Random-coefficient models and fixed-effect models

trying to solve endogeneity problem

Research Framework

Base The established results about:HC particular importance during the economic

crisisthe irrelevance of the SC during the economic

instabilitythe role of marketing capital before and after

the crisisthe increasing return to scale of intangible

resourcesThe database (representative according to UE and industries):

companies from 5 EU countries: UK, Germany, France, Spain, Italy

proxy indicators of companies’ intangibles designed on the previous stage

value creation proxies

Prospectives of the Analysis: Research Questions

Comparative study of different time periods: before, during and after the economic crisis

Comparative study of different European markets: UK+Germany+France (prosperous economy) and Spain+Italy (protracted economic crisis)

Comparative study of different industries: traditional vs. innovative, production vs. services, high concentrated vs. industries with high competition …

Examples of the Hypotheses

The more flexible the company was (in terms of changing investment strategy) the better its chances of survival during the crisis

The return to scale of intangibles employment changes across the prosperity, crises and recovery periods

Traditional industries were less influenced by the crisis shocks in relation to innovative ones

International penetration of companies in UK and Germany provided them with the survival support during the recovery period