Measuring organization capital in Japan: an empirical assessment using firm-level data

Tsutomu Miyagawa and YoungGak Kim ()

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Globalization and the ICT revolution of the 1990s have forced many firms to reorganize in order to survive in a more competitive market. There are several approaches that can be used to assess the measurement of organization capital since it is unobservable. Using an optimizing firm model and assuming that a firm holds multiple assets as suggested by Yang and Brynjolfsson (2001) and Cummins (2005), we examined whether organization capital is accumulated with investment in several types of assets. In contrast to Cummins’s (2005) results, we found that the accumulation of organization capital is associated with investment in R&D assets and marketing assets. Using these results and following Basu, Fernald, Oulton, and Srinivasan (2003), we measured the contribution of organization capital to the conventional TFP growth. The estimation results implied that the growth of organization capital did not have significant effects on productivity growth.

Keywords: adjustment cost of investment; intangible asset; organizational capital; Tobin’s q; total factor productivity (search for similar items in EconPapers)
JEL-codes: L21 L23 L25 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2007-08
References: Add references at CitEc
Citations:

Downloads: (external link)
http://eprints.lse.ac.uk/19696/ Open access version. (application/pdf)

Related works:
Working Paper: Measuring Organization Capital in Japan: An Empirical Assessment Using Firm-Level Data (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:19696

Access Statistics for this paper

More papers in LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library LSE Library Portugal Street London, WC2A 2HD, U.K.. Contact information at EDIRC.
Bibliographic data for series maintained by LSERO Manager ().