Asset-light valuation: a resource-based analysis of sustainable competitive advantage

This paper contributes to the development of asset-light valuation, which addresses the crucial reasoning on how the sustainable competitive advantages of firms produce superior financial performance. Past literature on resource-based theory is generally unclear on how the "sustainable advantage-generates-superior performance" inference can be realized. This paper provides a comprehensive picture of financial measures that can e applied to the determinants of asset-light valuation. It suggests five generic dimensions of the asset-light strategy, including brand equity, knowledge property, management capability, position in the value chain, and organizational culture. It further supplements this view in accordance wit the resource-based view and marketing productivity and discusses its impact on a firm's performance. The paper concludes by illustrating new research directions based upon understanding how the asset-light strategy enables firms to orchestrate operations within the knowledge-based economy more effectively.