Going digital and intangible: intangible investments effects on a company’s success

Abstract

This paper empirically examines the success factors resulting from intangible capital, including computer-based information, as the main drivers of knowledge-based digital growth. The data were collected via a survey on investment in intangible capital and digital technologies. The Stata SEM package was used to estimate the model. The results show that investing in intangible capital has a positive impact on corporate success relative to the competition, and that investing in intangible assets, combined with business agility, enables rapid responses to competitive pressures and improves business performance. Companies operating in highly competitive markets, where intangible capital is a key success factor, would be well advised to focus on investing in intangibles when designing their business strategies.

Keywords

• investments
• business performance
• digitalisation
• intangible capital
• competition pressure