RBV & Financial Capability




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Mohan Fonseka
Student (University), China

RBV & Financial Capability

The Chinese security regulation commission regulates the access to equity and bond. Only firms which meet the qualifications are eligible to obtain access to external finance.
Do you think a firms' ability to access equity or bond can be an intangible asset? Is it a capability? Do these capabilities give a competitive advantage? Anbd last but not least, can we apply RBV?
 

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Warren D. Miller, CPA, CFA
Strategy Consultant, United States
 

RBV & Financial Capability

Mohan, I think that a firm's ability to access capital is a resource. It is not an intangible asset because access alone does not earn a rate of return; any asset must have a rate of return. In the case of access to capital, it's how that a firm can invest that capital to generate a rate of return that is higher than its own cost of capital. That is the challenge.
As for apply the RBV, the RBV can be applied to the capability of just about any enterprise. I say "just about any" because I have reservations about applying to very small firms and mom-and-pop types of businesses. Those aren't really businesses - they are just jobs. But for any substantive enterprise (full-time-equivalent employees >= 12), the RBV can be used with great benefits... If it's used properly.

 
2
Mohan Fonseka
Student (University), China
 

Accessibility to Equity and Bonds for Chinese Firms - Intangible Assets?

@Warren Miller, CFA, CPA : thanks! I agree with your comments for mature and liberal economy. A reg... Sign up

 
2
Piotr Wojcik
Student (Other), Poland
 

Intangible Assets versus Capabilities

Dear Mohan, the case you are describing is very interesting to discuss about. You made a good poin... Sign up

 
2
Warren D. Miller, CPA, CFA
Strategy Consultant, United States
 

Intangible Assets versus Capabilities

@Piotr Wojcik: The origins of the RBV go back to Edith Penrose's classic book, The theory of the ... Sign up

 
2
Piotr Wojcik
Student (Other), Poland
 

Access to Capital: Resource or Capability?

@Warren Miller, CFA, CPA: following Penrose (despite the fact that her work was issued in 1959, it i... Sign up

   

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