Intangible resource influence on sustainable firm performance: A qualitative analysis of Chinese firms

From a strategic management perspective, the Resource-Based View (RBV) emphasizes that organizations can achieve exceptional performance by effectively identifying and utilizing their unique resources.The role of resources towards the exceptional performance of a firm is vital as they constitute the foundational blocks that determine the firm's ability to create value.Resources are categorized as tangible and intangible, contrasting with the traditional approach to prioritizing tangible resources.These days, firms are increasingly shifting their focus to valuing intangible resources.However, uncertainties persist about the extent to which these intangible assets, when integrated with other resources, impact the overall performance of Small and Medium-Sized Enterprises (SMEs).This qualitative study presents the exploration of the contribution of five intangible resources, namely managerial capabilities, organizational culture, research and innovation, marketing, and customer service, towards the performance of top SMEs from China.In this study, the data were collected through 60 interviews along with 10 Focus Group Discussions (FGDs) involving diverse stakeholders such as employees, suppliers/distributors, and consumers.Using thematic frameworks, the study explores and identifies how firms generate, manage, and utilize intangible resources to establish competitive advantages and ensure long-term sustainability.The findings reveal significant variations in core competencies and strategic approaches between different firms at different levels, emphasizing the importance of aligning intangible resource management practices with organizational goals.The findings of this study could provide valuable guidance for SMEs, helping them make more informed investment decisions regarding resource allocation.The findings of the study offer practical insights for managers and contribute to future research aimed at enhancing sustainable performance through effective utilization of intangible resources.