The subjective power of intangibles in a firm’s growth: Unlocking hidden assets within a company strategy

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Abstract

This paper explores the often-underestimated influence of intangible assets, such as brand reputation, customer loyalty, intellectual property, and organizational culture, on firm growth and competitive advantage. Intangible assets are increasingly recognized as critical drivers of sustainable success, yet their subjective nature and challenges in measurement leave gaps in understanding their true impact on a firm’s performance. As Hussinki et al. (2024) claim that the discussion around intangibles extends beyond their role in value generation to encompass their impact on a firm’s overall risk and value creation profile. Moreover, the recorded goodwill value on companies’ balance sheets has grown over time, both as a proportion of their total assets and as a share of their net assets (Chen et al., 2021). This study investigates how these intangible elements contribute to revenue growth. Results indicate a strong correlation between high intangible asset valuation and superior firm growth trajectories, suggesting that intangibles provide firms with unique, hard-to-replicate advantages that fuel resilience and adaptability in dynamic markets. By shedding light on the “subjective power” of intangibles, this research advocates for refined frameworks in accounting and management that better capture the value of these assets, offering insights into optimizing intangible asset investment strategies for long-term growth. This study contributes to the growing field of intangible asset valuation, proposing that a strategic focus on cultivating and leveraging intangibles is essential for firms aiming to maintain relevance and drive sustainable growth in an increasingly intangible-driven economy.

Keywords: Goodwill, Intangibles, Revenue, Strategy, Business Performance, IFRS

Authors’ individual contribution: Conceptualization — V.B.; Investigation — V.B.; Methodology — V.B. and P.B.; Visualization — V.B.; Writing – Original Draft — V.B. and P.B.; Writing — Review & Editing — P.B.; Supervision — N.S.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: F01, M41, O49

Received: 21.01.2025
Revised: 12.04.2025; 09.06.2025; 29.10.2025
Accepted: 20.11.2025
Published online: 24.11.2025

How to cite this paper: Balla, V., Ballas, P., & Sykianakis, N. (2025). The subjective power of intangibles in a firm’s growth: Unlocking hidden assets within a company strategy. Corporate and Business Strategy Review, 6(4), 184–193. https://doi.org/10.22495/cbsrv6i4art17