 Specificity and opacity as resource‐based determinants of capital structure: evidence for Spanish manufacturing firmsJosé David Vicente‐Lorente Strategic Management Journal, 2001, vol. 22, issue 2, 157-177 Abstract: In this work we develop an analytical framework to examine the effects of strategic investments on the financial policy of the firm. From the resource‐based approach of the firm, nontradable and difficult‐to‐copy assets are the basis of a sustainable competitive advantage. However, imperfections in the resource markets can also be interpreted as sources of costs and/or restrictions from a financial point of view. Specificity and opacity are the features of strategic resources that enable us to identify the financial implications of the resource‐based strategy. We have tested our theoretical framework using a sample of Spanish nonfinancial firms. Our results show that highly specific and opaque resources limit the borrowing capacity of the firm, while other transparent strategic assets affect financial leverage positively. Our findings suggest two main implications for strategy formulation and implementation: (1) there are unobservable financial costs that must be considered for a correct evaluation of a sustainable competitive advantage based on strategic resources; and (2) the financial policy of a ‘resource‐driven’ firm is partially determined by the features of its strategic resource bundle. Copyright © 2001 John Wiley & Sons, Ltd. Date: 2001 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:stratm:v:22:y:2001:i:2:p:157-177 Ordering information: This journal article can be ordered from Access Statistics for this article More articles in Strategic Management Journal from Wiley Blackwell |
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