Tag
intangible_capital
3 findings
Finance & microfinanceIntangible Management Capital Borrowing BarrierLarge manufacturing firms easily executed physical equipment investments of $1,000,000 or more without credit constraints, yet could not secure debt financing for managerial consulting because organizational practices lack seizeable collateral.Observational StudyFinance & microfinanceIntangible Management Capital Financing AsymmetryWhile large manufacturing firms routinely secure physical equipment financing exceeding $1,000,000, zero firms obtain commercial loans to hire management consultants due to lack of collateralizable physical assets and bank skepticism.Observational StudyFirms & operationsManagement Practices as Complementary Intangible CapitalModern management practices yielded an estimated annual profit increase of $325,000 per plant from reduced mending labor, lower yarn inventory, and increased output. Net direct implementation costs (excluding consulting) averaged under $3,000 per firm, representing a 130% one-year return on investment based on commercial consulting fees of $250,000.RCT