Is intellectual capital‐based strategy market‐based or resource‐based?

Purpose – The purpose of this paper is to construct a strategy model based on Intellectual Capital (IC) theory and to demonstrate that it is not purely resource‐based (RBV), but includes many elements that are rooted in the market based view (MBV). The authors' analysis indicates that only strategies which lead to both tangible and intangible revenues are sustainable in a knowledge‐based economy. Design/methodology/approach – The paper takes the form of an extensive review of IC and strategy literature, and in‐depth comparative analysis of IC concept and the strategy management frameworks, particularly Porter's framework. Findings – It is found that the IC‐based view (ICBV) is much closer to the MBV than what one would expect and the ICBV is more appropriate for a knowledge‐based economy than both the MBV and the RBV in general. Originality/value – It is widely assumed that IC theory is strongly related to resource‐based strategy. The authors question this simple view and maintain that the IC‐based view relates to both MBV and RBV.