Unlocking Intangible Assets Boosts Productivity in Service Sector Firms
The article explores how intangible assets like organizational capital and IT impact the productivity of service sector firms. By analyzing data from UK firms, the researchers found that organizational capital and IT play a significant role in firms' productivity, especially in knowledge-intensive sectors. These assets not only directly affect productivity but also indirectly through their involvement in the innovation process. The relationship between organizational capital and productivity is particularly strong, even when considering firms' use of human capital.