Question

What are the differences between tangible and intangible resources, Why is it important for decision makers to understand these differences? Are tangible resources more valuable for creating capabilities than are intangible resources, or is the reverse true? Why?

Answer 1

Tangible resources are the assets which can be observed and quantified. While, the intangible resources involves assets which are rooted very deeply in the history of a firm and also lumped with overtime. When comparing to the tangible resources, intangible resources are much difficult for the competitors to analyse the process.

The importance of tangible and intangible resources will effects more for the decision makers because, the resource are the inevitable source of a firm's capabilities.And the capabilities can be taken as the source which are the firm's core competencies. It paves many advantages in the sense of competitive behaviour. In my view, intangible resources are more valuable than the tangible resources.when analysing the global economic features, the main elements which leads to the success of corporation are the intellectual and system capabilities.

The importance of intangible resources will effect in each business due to the reason that, they are not a physical things.and also the intangible resources involves word of mouth and reputation and this would create or break a firm's business and it is not something other companies can reproduce or create on their own.