Resource allocation choices in asset‐intensive industries

Abstract The purpose of this study is to examine the determinants of tangible and intangible resource allocation in asset‐intensive organizations, by employing a qualitative and a quantitative study in the setting of the maritime shipping industry. First, the study employs seven in‐depth interviews to identify the firm‐specific factors that shape resource allocation decision‐making. Second, the study utilizes a unique panel dataset of public maritime shipping companies for the period 2010–2020 to empirically investigate the identified determinants of resource allocation choices. The results indicate that factors, such as firm's risk‐seeking profile, smaller size, limited cash liquidity, capability to access capital, lower cost of equity capital, higher cost of debt capital, lower level of insiders' ownership, younger CEO, and limited environmental‐related disclosures are positively affecting the number of tangible resources allocated. The findings, apart from enriching the body of literature, have some managerial implications that are discussed herein.