Title: Did relational capital matter during the financial crisis?

Authors: Evgeniia Kuminova; Anna Bykova

Addresses: National Research University 'Higher School of Economics', Perm Campus, 27, Lebedeva str., of. 303, Perm, 614017, Russia ' National Research University 'Higher School of Economics', Perm Campus, 27, Lebedeva str., of. 303, Perm, 614017, Russia

Abstract: This paper aims to contribute to the body of empirical studies that address the importance of investments in companies' relationships and the way in which they influence value creation in the global economic crisis. We employ linear panel analysis using the Hausman-Taylor model to analyse panel data for companies from the five largest European countries in the period 2004-2011. Different types of exogenous and endogenous links which a company could have in different stages of the crisis are investigated. The findings suggest that there is a statistically significant and positive link between relational capital and a firm's value. Moreover, we identify several differences in the significance of the inputs during different crisis periods. The study provides both theoretical and practical insights into investments in intangibles for framing strategy decisions with a particular focus on the role of relational capital. This could provide scholars and practitioners with a working basis for understanding connections and the implications of strategising in the context of a company's networks.

Keywords: relational capital; economic crisis; value creation; Hausman-Taylor model; Europe; firm value; intangibles; intangible assets; strategy decisions.

DOI: 10.1504/IJLIC.2014.066647

International Journal of Learning and Intellectual Capital, 2014 Vol.11 No.4, pp.286 - 305

Received: 05 Nov 2013
Accepted: 26 May 2014
Published online: 11 Jan 2015 *

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