Value Creation Effect Research Articles

Integration of Agile Technologies in Internal Audit

The study is devoted to the processes of integration of Agile technologies in internal audits. It was determined that Agile is a method and a way of thinking simultaneously, which ensures timeliness of receiving information, quick response to risks, and acceleration of audit cycles, thanks to which the effect of value creation is achieved for both top management and stakeholders. The analysis of statistical studies of the implementation of Agile technologies allowed the authors to conclude that the Agile approach is increasingly used in enterprises to achieve planned results, and to single out key changes in the concepts of internal audit, which became possible thanks to the implementation of the Agile approach. It is noted that there is no single path for transitioning to the use of Agile methodology for all organisations. In addition, such a transition can cause difficulties associated with rethinking the audit process. That is why the authors attempted to unify the work cycles of the internal Agile audit.

Enterprise value creation effects of artificial intelligence technology from the perspective of digital agility: evidence from China

ABSTRACT As a pivotal technology driving the latest wave of technological revolution and industry transformation, artificial intelligence (AI) is permeating the processes of business operations widely. Grounded in the dynamic capability theory, the research use Word2Vec and Python to extract metrics for AI technology from annual reports of Chinese A-share listed companies from 2012 to 2022. This research empirically investigates the impact of AI technology on the level of enterprise value creation. The findings reveal that the application of AI technology by listed companies significantly enhances their value creation, a conclusion that remains robust following various endogeneity and robustness tests. AI technology empowers enterprise value creation through the mechanisms of sensing, integrating, and restructuring digital agility. Furthermore, the value-creation effect of AI technology is more significant in manufacturing and the eastern region. The results elucidate the logic behind the influence of AI technology on enterprise value creation and provide practical support for organisations in implementing AI strategic planning and decision-making.

Business Model Innovation and Corporate Competitive Advantages in the Digital Economy Era

In the digital economy era, enterprises face unprecedented challenges and opportunities driven by the rapid advancement of digital technologies. To thrive in this dynamic environment, enterprises must continuously innovate their business models to create and capture value in new ways. This paper explores the relationship between business model innovation and corporate competitive advantage in the context of digital transformation. Drawing on the resource-based view, dynamic capabilities framework, and other theoretical perspectives, this paper examines the characteristics, mechanisms, and strategies of business model innovation in the digital age. Through a comprehensive literature review and analysis of representative cases, we identify three key trends shaping business model innovation: digitalization, platformization, and intelligentization. We argue that enterprises need to leverage these trends to design customer-centric value propositions, build digital capabilities, construct open and collaborative value networks, and foster an agile and innovative organizational culture. Our findings highlight the importance of value creation, value capture, and value network effects in driving competitive advantage through business model innovation. We propose a framework that integrates these mechanisms with the core components of business models, providing a holistic and systemic view of business model innovation in the digital economy. We also discuss the implications of our research for theory and practice, emphasizing the need for further studies on the dynamics and outcomes of business model innovation in different contexts and industries. This paper contributes to the growing literature on business model innovation and competitive strategy in the digital age. By bridging the gaps between different theoretical perspectives and providing actionable insights for practitioners, we aim to advance the understanding and application of business model innovation as a key driver of corporate competitive advantage. Our research suggests that enterprises that can effectively align their business models with the evolving digital landscape will be better positioned to create and sustain superior performance in the face of increasing complexity and uncertainty.

DIGITAL TRANSFORMATION, INTERNAL CONTROL AND ENTERPRISE VALUE: THE MODERATING ROLE OF HUMAN CAPITAL

This study looks at panel data from Chinese A-share listed companies from 2011 to 2021 to see how internal control affects the relationship between digital transformation and enterprise value. It also looks at how human capital affects that relationship. The results show that digital transformation significantly contributes to enhancing enterprise value, with internal control playing a significant mediating role in this effect. However, the value creation effect of digital transformation varies among enterprises of different scales, ownership attributes, and industries. Further analysis demonstrates that human capital has a significant and positive moderating effect on the impact of digital transformation on enterprise value, indicating that enterprises with better human capital experience a more pronounced effect on enhancing enterprise value through digital transformation. These findings provide valuable managerial insights for enterprise decision-makers to utilize digital practices to enhance their competitiveness and achieve value creation.

Effectiveness of Company Value Creation Based on Excess Market Value-Added Assessment

This article aims to assess the usefulness of excess market value added to equity as an external measure of company value creation from the perspective of meeting shareholder expectations. This measure compares the expected value as an increase in stock exchange capitalisation in relation to return on equity, equivalent to its cost, decreased by this capital, in relation to the actually achieved level of capitalisation. This paper investigates relations with other external and internal measures. This research is based on measuring value creation in WIG30 Warsaw Stock Exchange companies in 2017–2023. The assessment of the research results was based on mathematical statistics tools, the density measure and the taxonomic measure of similarity. The study tested four hypotheses. The results of this research showed that the excess measure does not distort market information and can be used to assess the effectiveness of shareholder value creation, taking into account shareholder expectations. Secondly, the paper pointed to an unsatisfactory level of value creation in WSE WIG30 companies. The negative assessment of value creation management refers both to effectiveness and efficiency. Thirdly, shareholders continue to use classical financial measures despite the existence of a wide spectrum of value measures. Fourthly, the paper points to the lack of theoretical equality between the market value added (an external measure) and capitalised economic value added (an internal measure). The presented research contributes to unbiased assessments of whether or not shareholder value is simultaneously created and realised in increased share prices (capitalisation) to a higher degree than shareholder expectations. Up to now, no such research studies have been conducted for Polish and foreign capital markets. The research methodology has practical applications in expectations-based management.

Explaining the non-adoption of blockchain technology in global value chains: a micro-foundational perspective

The business potential of blockchain technology in global value chains (GVCs) includes the creation of permanent records of information, to facilitate specifications regulation, to mitigate risk using smart contracts and through full, transparent transaction traceability at reduced costs. Blockchain as a general-purpose technology (GPT) thus has the potential to increase the effectiveness and efficiency of value creation for firm specific advantages owned and/or controlled by multinational enterprises (MNE), yet adoption of blockchain is uneven. This study adopts a micro-foundational lens to explain the non-adoption of blockchain technology in multinational enterprises’ (MNE) global value chains (GVC), emphasizing the influence of the technology, organization and environment (TOE) influences on the technology acceptance (TAM) for blockchain, due to the impact on managers’ perception of blockchain's usefulness and ease of use. The empirical results are based on a multiple-case study research design, that collected interview data from supply chain managers in small, medium, and large-sized manufacturing MNEs that participate in global value chains that differ in their governance patterns. The results identified fifteen different drivers of the non-adoption of blockchain technology across the technological, organizational and external environments of the MNE. The results of the study allow a parsimonious model of blockchain technology non-adoption that is aligned with the digital technology adoption literature using a TOE–TAM approach.

From Evaluation to Valorising: Three Moments in the Making of Social Impact Value

Value creation is central to entrepreneurship. Within social entrepreneurship research, value is discussed in relation to impact assessment as either pertaining to the thing assessed or dependent on the assessor. These are two perspectives that are blind to the value creation effects of the impact assessment process itself. Following pragmatist developments in the sociology of valuation, the article examines social impact evaluation activities and their performative effects. Findings, based on an analysis of a nascent social venture’s efforts to assess impact, suggest that the very acts of evaluating value are implicated in enacting social and organisational value. As a result, the article calls for a shift in focus from merely social value metrics and perspectives to social valuation processes and practices. This analytical shift helps uncover the social and political dimensions inherent in social impact assessment processes.

Shifting Paradigm? Long-Term Value Creation as a Normative Principle in a Hostile Takeover: Evidence from the Netherlands

Abstract This article provides additional insight on the effectiveness of long-term value creation as a legally enforceable norm in the corporate governance system and provides a framework to anchor long-term value creation in takeover decisions. Since the 2008 financial crisis, a growing number of voices in the business world, government and academia, have urged Western economies to move towards a long-term sustainable growth agenda. Boards have a vital part to play in the development of responsible companies. Corporate governance should encourage boards to do so. This could be viewed as a reaction to the negative effects of capital markets and the resulting short-termism. One key method to encourage sustainable value creation in companies is by incorporating long-term value creation as an open norm in corporate governance systems. In the case of a hostile takeover, the risk of short-termism is exacerbated. As a guiding principle, long-term value (LTV) creation should prevent hostile takeovers that could harm the success of the company concerned. In this research paper, we argue that the recent shift in Dutch case law and revision of the Corporate Governance Code in the Netherlands may serve as an important catalyst for ‘sustainable’ takeover decisions. Through ground-breaking judgments by the Dutch Supreme Court and Enterprise Court, Cancun and Akzo Nobel, LTV has acquired the status of an enforceable norm. We investigated whether this legal norm is empirically substantiated. The research results allow us to make well-grounded statements about the effectiveness of enforcing LTV in future hostile takeover situations.

How servitization affects firm performance: the moderating roles of corporate social responsibility and green innovation

PurposeThis study aims to examine how degree of servitization and breadth of servitization affect the firm performance, and the moderating roles of corporate social responsibility (CSR) and green innovation.Design/methodology/approachThe hypotheses are tested using panel data regression models from 2010 to 2020 based on 10,539 firm-year observations from 2,362 Chinese listed manufacturers.FindingsConsidering the classification of servitization, the results show that both degree and breadth of servitization have positive impacts on firm performance. In addition, CSR strengthens these impacts, while green innovation only strengthens the impact of degree of servitization on firm performance.Practical implicationsThis study suggests that manufacturers should obtain greater profits by actively implementing the servitization strategy, and effectively take their social responsibility by achieving value co-creation with stakeholders. Also, they should carry out green innovation, develop green products and provide eco-friendly services.Originality/valueThis study contributes to the servitization literature by deepening the understanding of the value creation effect of services based on the service-oriented logic. Also, this study contributes to the sustainability literature stream by revealing the moderating roles of CSR and green innovation based on the stakeholder theory.

Effect of Customer Engagement on Customer Value Creation and Subjective Well-being

Purpose: This study analyzes the intermediate effect of customer value creation on the relationship between customer engagement and subjective well-being. It highlights the importance of customer engagement and interest while, validating the impact of customer's psychological happiness and satisfaction through customer value creation.Methods: Using the SPSS Ver.21.0 program as an analysis method, this study performed frequency analysis, factor analysis, reliability analysis, and three-stage mediated multi-regression. The survey included 240 customers who experienced experience and demonstration services at the cosmetics stores in Seoul and the metropolitan area from December 3 to 31, 2021. For the analysis, 232 samples were used, excluding 8 samples that were deemed unusable.Results: First, customers who experienced experience and demonstration services in cosmetics stores have a positive effect on customer value creation. Furthermore, this positive effect extends to customers' psychological well-being and satisfaction. Second, in the context of the relationship between customer information and subjective well-being, customer value creation has been demonstrated to have a partial mediating effect.Conclusion: Experience and demonstration services offer by cosmetics stores with high-quality content can enhance customer participation and encourage active customer engagement. Consequently, they contribute in, improving functional satisfaction, enjoyment and social value for customers. By efficiently achieving mutual value creation between companies and customers through leveraging such customer information, these services can function as strategic marketing tools. Moreover, they play a crucial role in completing the image improvement of companies and their cosmetic products by projecting customers' happiness on to cosmetics and services offered.

The Effect of Value Creation on Startups Performance in the Digital Environment: Evidence from Chinese Digital Startups

The use of digital technology has enabled consumers to play an essential role in the success of startups. Priem et al. proposed a demand-value creation-performance framework, which argues that firms can create value for the consumer by exploring consumer demand, and this type of value-creation activity can help firms gain better performance. However, empirical evidence supporting this framework remains scarce. To address this challenge, this study empirically tests Priem et al.’s framework in the context of entrepreneurship. A unique on-site survey dataset of 323 digital startups in the digital environment was employed to explore how consumer demand drives startups to value creation activities and gain better performance. The study results show that consumer demands, in terms of demand heterogeneity, demand uncertainty, and demand interactivity, are positively related to value creation, as reflected by opportunity recognition and consumer innovation. Furthermore, both opportunity recognition and consumer innovation are positively related to the performance of startups. These findings support the demand-side perspective by providing empirical evidence for its key arguments from an entrepreneurial view and extend the demand-side perspective by contextualizing it in the increasingly digital environment.

How you get it matters: Moderating role of transfer method in guiding ownership assignments for modified objects.

Previous research has found that value change and creation drive people to support the laborer more than the original owner in ownership reasoning for modified objects; however, the transfer methods used to resolve conflicts have largely been ignored. In this work, two studies were designed to investigate the role of value change and creation in adults' labor-based ownership judgments in four transfer conditions (i.e., take/steal/borrow/find). Scenarios involving different extent of value change and creation in different transfer ways were presented to Chinese adult subjects after which they were asked to judge who is the owner. People were more likely to assign ownership to the original owner in the take, steal and borrow conditions but not in the find condition, and this reasoning held regardless of whether the original materials showed high or low value appreciation or successful creation, and it was applicable to raw materials with low (Study 1) and high values (Study 2). In addition, the effect of value change and creation on ownership reasoning varied according to different transfer methods. The results suggest the moderating role of transfer method in people's ownership assignments, which will provide insights for real-life mediation of ownership conflicts.

Research on the Problems and Causes of Home and Community Elderly Care Services

From the development status of home and community elderly care services in XX County, we can see the following problems in this field: insufficient public participation; The effectiveness of public value creation is insufficient; The realization of public value is insufficient. These problems are mainly attributed to the following aspects: single publicity means of government and relevant departments, no enough promotion of it, unchanged public pension concept and insufficient government funding.

The digital adoption of blockchain technology in the project management information systems: A value creation mediation model

Blockchain technology adoption among the businesses has become a new updated technological improvement and calls all businesses to care with it. This research aims to address its effect with project management information systems with a possible moderation effect of the value creation gained of this factor. The study used a quantitative research method to meet its objective and collected the data from Jordanian e-commerce enterprises with a total of 320 participants. PLS-SEM technique was used to perform the key analyses. The results found a significant effect of all hypothesized research assumptions and a significant moderating effect of value creation on the respective effect of study’s variables. The findings also expanded the current understanding and application of this technology and showed some implications and applicable insights that supported the existing literature and evidence in this field. The study would contribute to cover the limited research works and knowledge gaps with a suggestion to integrate this technology and application within different contextual settings.

Influence of CEO Human Capital and Behavioral Characteristics on Economic Profit of Russian Companies

We investigate how different personal traits of a chief executive officer (CEO) influence value creation in one of the largest emerging capital markets in Russia. Our research model considers several components of human capital of a CEO.
 Moreover, we include CEO’s behavioral biases looking at overconfidence measured by industry adjusted ratio of capital expenditures and narcissism captured by the analysis of CEO’s photos following previous academic research approaches. The CEO power is applied to understand its impact over value creation and possible mitigating effect. Our sample consists of 111 Russian publicly traded companies and 235 CEOs for 8 years (from 2013 to 2020). We apply economic profit criteria to measure corporate performance with economic value added (EVA) which captures the spread between actual return on capital derived from financial reports and overall cost of capital based on the risks of a company collected from Bloomberg .
 We use first-order differences in company’s contribution to EVA after adjustments to the industry and overall market contributions to EVA for the sample. We find empirical evidence that CEO’s human capital affects value creation measured by first-order differences to industry adjusted EVA yearly. Furthermore, the CEO power has positive impact over value creation in Russian corporations while behavioral biases such as overconfidence ad narcissism do not have significant relationship with the changes in EVA.

Corporate Mergers, Acquisitions and Value Creation of Firms in Nigeria

This study seeks to scrutinize the effect of corporate mergers, acquisition and value creation of firms in Nigeria and to identify areas of synergy. The study employed secondary data collected from the bank’s annual report. The data collected covered a period of fourteen years, which is divided into the pre and post-merger periods of seven years respectively. The study adopted panel least square estimation technique and other estimation for the analysis. The study finds out that shareholders’ funds and earnings per share are significant in determining the return on asset. Also shareholders’ funds and total asset values are statistically significant in the pre-merger periods in determining return on asset. That profit after tax is statistically significant in explaining financial efficiency in the pre-merger periods; the study concludes that there was increase in the shareholders’ funds for the post-merger periods.

How scientists interpret and address funding criteria: value creation and undesirable side effects

Scientists and funding bodies are interdependent actors involved in an ongoing two-way signalling interaction; however, we lack insight on the social mechanisms underpinning this interaction. To address this issue, we examine how successfully funded scientists interpret and address criteria set by the funding body to maximise their chances of funding success. We also consider the possible adverse side effects that can arise from scientists’ competitive efforts to address these criteria. Our findings identify a portfolio of funding criteria—research feasibility, research alignment and team credentials—that scientists address when preparing grant applications. Effectively addressing these criteria enhances the prospects of funding success and value creation. However, we also find that scientists can over-address funding criteria, which is counterproductive and yields undesirable side effects. Our research therefore makes an important distinction between the possibilities for value creation and the value creation frictions that can unintentionally arise based on how grant-submitting scientists interpret and address the criteria signalled by the funding body. Our research has implications for policymakers, funding bodies and scientists which we also discuss.

Shared auditors, information asymmetry degree, and mergers and acquisitions value creation.

The social network is an important factor that affects the value creation of mergers and acquisitions (M&A). The M&A events of China’s Listed Companies in 2011–2018 were used as research samples, and this study used the ordinary least square method to test the value creation effect of shared auditors. First, it analyzed the impact of shared auditors on the current, short-term, and long-term M&A value creation. Second, it analyzed the moderating effect of information asymmetry degree. The research results show that shared auditors can increase the enterprise value of both sides of M&A. In addition, related M&A and industry attributes can moderate the relationship between shared auditors and M&A value creation. When the M&A are unrelated and in different industries, shared auditors play a more significant role in the value creation of M&A that have more asymmetric information.

Social Media Usage and SME Firms’ Sustainability: An Introspective Analysis from Ghana

Social media is gradually transforming diverse business ecosystems due to the limitless capabilities they offer. Given this, emerging businesses across the globe are leveraging this innovation to improve their operations. While the literature on the usage of social media by small and medium enterprises (SMEs) is still emerging, the outcomes from existing research have not been coherent. Amid this, limited empirical evidence has been adduced on the affordance of the technology for the SME ecosystem in developing economies, particularly Ghana. Following this, this study aims to fill this research gap by investigating the impact of social media usage on the long-term sustainability of SMEs, specifically in Ghana. Using empirical data from 424 respondents who are representatives of manufacturing SMEs in Ghana, using SmartPLS techniques, the study confirmed that, generally, social media usage does not only have a positive impact on SMEs but drastically drives their motivations towards resilience and sustainability. The results further revealed a positive and significant effect of social media usage value creation, business connections and opportunities on SMEs’ sustainability. This study contributes to knowledge of social media usage and sustainability from a developing country’s perspective. This study offers several implications for theory and practice.

Value Creation and Firm Innovativeness of Small and Medium-Sized Enterprises in Ogun State, Nigeria

Background: Small and medium-sized enterprises are globally viewed as an important force driving economic development and employment creation in both developing and developed countries, which is well acknowledged. However, the performance of SMEs in developed and developing economies has been slow and in some cases even collapsed due to a number of challenges such as the inability to respond to rapidly changing market demand, technical advancements, and capacity constraints related to knowledge, innovation and creativity all of which have negatively impacted on SMEs' performance leading to inability to sustain SMEs competitive advantage, decline in sales-growth, profitability and reduced innovative-capability. Extant studies have attempted to elucidate on the challenges of SMEs and the attendant supposed solutions, conversely, most of the extant research focus more on developed countries than developing countries such as Nigeria.
 Purpose: This study examined the effect of value creation on firm innovativeness of small and medium-sized enterprises in Ogun State, Nigeria.
 Methodology: The study adopted a survey research design. The population was 2,465 registered small and medium scale enterprises in Ogun State, Nigeria. A sample size of 432 was determined using Cochran formula. Proportionate stratified sampling technique was adopted. A validated questionnaire was used to collect data. Cronbach’s alpha reliability coefficients for the constructs ranged from 0.79 to 0.92. The response rate was 87.9%. Data were analyzed using descriptive and inferential statistics. 
 Findings: Findings revealed that value creation components had significant effect on innovativeness (Adj.R2 = 0.792; F (3,407) = 522.888, p < 0.05). The study concluded that value creation had a significant effect on firm innovativeness of SMEs in Ogun state, Nigeria.
 Recommendation: The study recommended that value creation components enhanced small and medium enterprises’ innovativeness and therefore, owners/managers should continually create value in other to enhance SMEs innovativeness.