Using cointegration methods to estimate the interconnectedness of intangible strategic assets : Empirical evidence for management decision making

Purpose – The aim of this paper is to advocate and implement cointegration methods for the estimation of interconnectedness of service quality and customer loyalty as intangible strategic assets within management decision. Design/methodology/approach – Using longitudinal time series quarterly data on loyalty and service quality, the paper uses cointegration methods to empirically estimate the weight of interconnectedness of customer loyalty and service quality as intangible strategic assets. Findings – The research evidence suggests that customer loyalty and service quality are interconnected intangible strategic assets that managers can develop, accumulate, estimate and deploy for superior competitive advantage. Originality/value – To the extent that the global economies are increasingly service‐driven, managerial capability to estimate intangible strategic assets as drivers of superior competitive advantage will remain strategically important. Assumedly, this paper is the first to illustrate how cointegration methods can be used by managers to estimate interconnectedness of intangible strategic assets. In this sense, to the extent that this method is new to managers, it represents another toolkit of intangible strategic asset management for managers.