Future Value Creation Research Articles

57 Nature based social prescribing for enhancing mental health and well-being

Abstract Objectives Nature Based Social Prescribing (NBSP) is a means of connecting people with non-clinical, nature-based community-led interventions delivered by 3rd sector organisations using local community assets. This research used a mixed-method Social Return on Investment (SROI) of a six-month pilot ‘Making Well’ NBSP programme to support individuals with chronic mental health conditions in Wales. Methods The ‘Making Well’ programme costs were estimated by means of SROI along projected 20% overheads, were incorporated to reflect sustainable costs as the charity develops and more accurately estimate the future social value expected to be generated. The ‘Making Well’ project delivered two separate programmes between October 2021 and April 2022. Data was collected from participants (n = 12) at baseline and eight-week follow-up along with interviews to collect in-depth data on individuals lived experience of participating in the programme. The ‘Making Well’ programme costs were estimated and financial proxies from the HACT Social Value (SV) bank were applied to identified benefits. Results The estimated cost of ‘Making Well’ programme inputs were £1,312 per participant and the net value of well-being benefits were £4,313 to £6,130 per participant, giving a range of SVR’s between £3.30 to £4.70 for every £1 invested in this NBSP intervention. The SROI forecast provides a three-year projection of the annual social value created and the estimated forecast cost of programme inputs was £797 per participant. The net value of well-being benefits was £4,313 to £6,130 per participant, giving a range of social value ratios between £5.40 to £7.70 for every £1 invested. Conclusions The SROI results demonstrate that the ‘Making Well’ programme is an effective NBSP intervention for supporting people with enduring mild to moderate mental health conditions. This SROI contributes to emerging evidence on the use of community assets and NBSP in generating a return on investment and positive social value. SROI forecasting for socially prescribed interventions delivered by local community assets, such as The Fathom Trust, can help organisations demonstrate transparent and effective investment of public funds and support optimal future social value creation and long-term public health outcomes.

A Composite Study of HDFC Bank Financial Performance

This composite study delves into the financial performance of HDFC Bank, a cornerstone of India's banking sector renowned for its innovation and customer-centric approach. Established in 1994, HDFC Bank has ascended to become one of India's largest private sector banks, epitomizing operational excellence and financial prudence. The study underscores the importance of analyzing financial performance in the dynamic banking landscape, serving as a linchpin for strategic decision-making, risk management, and stakeholder engagement. Through a comprehensive analysis of HDFC Bank's financial metrics, the study aims to unravel underlying performance drivers, elucidate emerging trends, and delineate strategic imperatives for future growth and value creation. Methodologically, the study employs a structured approach encompassing primary and secondary data sources, financial ratio analysis, qualitative assessments, and interpretive synthesis. Primary data sources include HDFC Bank's annual reports and regulatory filings, while secondary sources encompass scholarly literature and industry reports. Financial ratio analysis encompasses liquidity, profitability, efficiency, and asset quality metrics, providing multifaceted insights into HDFC Bank's performance dynamics. Interpreting key financial ratios offers valuable insights into HDFC Bank's performance trends. Notably, the bank demonstrates robust profitability metrics, operational efficiency improvements, and healthy asset quality. However, challenges such as declining CASA ratio and net interest margin warrant strategic attention. The study offers actionable suggestions for HDFC Bank to enhance its financial performance. Strategies include optimizing capital utilization, diversifying revenue streams, strengthening asset quality, improving cost efficiency, fostering strategic partnerships, and prioritizing customer-centricity and risk management. In conclusion, HDFC Bank's financial performance underscores its resilience, innovation, and commitment to stakeholder value creation. By leveraging insights from this study and adopting strategic initiatives, HDFC Bank can navigate challenges, capitalize on opportunities, and sustain its position as a leading player in the dynamic banking landscape.

Value Co-Creation: Transitioning From “Binary Interactions” To “Networked Systems”

The study viewpoint on value co-creation has gradually changed over the past few years from one that solely considers value creation between customers and businesses to one that also takes into account the value creation processes of numerous participants in a socio-economic network system. This shift reflects the essence of value co-creation, i.e., all parties' joint participation and collaborative value creation. This paper follows this research trend and explores the bilateral interactions between firm-firm, customer-customer and firm-customer, and the multiple interactions among all participants in the socio-economic network system. This study compiles domestic and international research results related to value co-creation. ln the meantime, it provides an outlook on future research directions. It is anticipated that a thorough examination of these interactions will help better understand the various participants' responsibilities in the value co-creation process and offer insightful advice for future value creation and business model innovation. This research will provide insights for companies and academics to help them achieve continuous innovation and success in the ever-changing business environment.

Environmental, Social, and Governance Performance and Value Creation in Product Market: Evidence from Emerging Economies

Using a unique sample of 13,412 firm-year observations from 19 countries of the emerging economies for the period of 2011 to 2019, we investigate the association between the firms’ environmental, social, and governance (ESG) performance and their value creation in the product market. Specifically, we first used the pooled OLS regression model for panel data as our baseline model and found that ESG performance (as well as its pillars) has a strong positive effect on the future value creation of the firms in the product market. We also conducted some additional analyses using various regression models, as well as adopting multiple tests for endogeneity, and the additional analyses revealed that the results are robust under different scenarios. Overall, the findings of this study highlight the importance of firm-level ESG performance for the value creation of firms in the product market in emerging economies and have theoretical and practical implications for academic researchers, market participants, and government entities in studying, evaluating, and governing firms’ ESG performance and reporting.

Europe’s quest for sustainability: An opportunity for centre–right parties?

The reasons for the decline of European centre–right parties since the 1990s are widely debated and subject to different explanations. One such explanation is that there has been a lack of an overarching narrative. In recent years, sustainability has become a dominant concept in European political debates. The article analyses whether this concept could become the core of a new political vision for centre–right parties and should no longer be considered only a leftist–green project. Three significant aspects of sustainability are discussed: future value creation, foreign relations and the future of democracy. In all three fields, there is a huge potential to redefine sustainability beyond the narrow environmentalist understanding, linking this approach to a long history of conservative, Christian Democratic thinking. For Europe as a global actor, sustainability could become a key component of its normative power, with many opportunities to link up with similar initiatives in other world regions.

DESIGNING BUSINESS MODELS FOR A CIRCULAR ECONOMY

AbstractThe megatrend sustainability will significantly change the future value creation of manufacturing companies. Their current linear value creation models need to change to conform to the requirements of sustainability. To face the challenges the circular economy has emerged as a promising economic model. With the shift from a linear to a circular economy, companies have to adjust their current business models. However, they still lack knowledge and adequate methods to develop circular business models. Hence, the aim of the paper is a circular business model canvas (CBMC) for designing circular businesses. A systematic literature review was conducted to identify significant criteria for circular business models. The criteria were analyzed utilizing a qualitative content analysis to derive the business model elements required for the circular economy. Existing elements from the Business Model Canvas were enriched and five new elements, e.g., reverse logistics, were found. Then, the business model elements were logically arranged resulting in the CBMC. It guides companies to systematically develop business models for the circular economy. The CBMC was evaluated by applying it within a mediumsized company in the electronics sector.

On the reconfiguring value creation logic and networks of the forest sector in a changing business environment

Numerous phenomena, such as sustainability challenges and the increasing importance of knowledge and digitalisation, have tremendous impacts on the global socio-economic system. These phenomena affect the dynamic and complex business environment where different actors from various sectors interact with each other. Responding to the phenomena and changes in the business environment calls for a systemic change in the ways that value-creating activities are performed. One suggested systemic change is a transition to a sustainable circular bioeconomy. Changes in the business environment pressure established business sectors, such as the forest sector, to reconfigure their networks and value creation logic, i.e., the ways in which actors co-create value. In this dissertation I investigated how the value creation logic of the forest sector changes when entering the sustainable circular forest-based bioeconomy. The research design followed a qualitative theory-guided interdisciplinary case study strategy. I analysed scientific and non-scientific documents to determine the past and currently occurring adaptations within the forest industry’s value creation logic. I conducted interviews to identify the possible future value creation logic of forestry service providers and the readiness of forest owners to respond to the occurring changes. According to the findings, the forest sector’s value creation logic is incrementally changing towards holistically sustainable, collaborative and cross-sectoral value co-creation logic. The sector has been able to reconfigure its networks and value creation logic in the past and it seems that the sector’s actors have understood the importance of cross-sectoral collaboration and intangible resources in the sustainable value-creating activities. They have acknowledged that their attitudes and actions will affect the future value creation within the sector. To reach holistic sustainability, actors need to consider the whole forest ecosystem as a capital and a resource base from where value and benefits for the common good are co-created in a forest-based sector.

Enabling collaboration on digital platforms: a study of digital twins

ABSTRACT Digital platforms are transforming almost every industry today and are expected to revolutionize future value creation. Digital platforms require collaboration, but this is challenging especially in the manufacturing industry where sensitive data need shared and high investments are required. Therefore, the purpose of this study is to enhance the understanding of how to successfully collaborate on digital platforms in the manufacturing industry by developing a contingency framework. The study is an explorative single case study of a digital platform. More specifically, the study examined the development process of a digital twin platform created by a large high-technological company and its collaborative actors. The results are based on 21 semi-structured interviews and reveals that actors on digital platforms can face five types of challenges that hinder a successful collaboration: disadvantages of dependency, uncertainty regarding data management, varying customer needs, insufficient work methods, and unsuitable payment models. The analysis also reveals four strategies that can be used to address the challenges: transparency strategy, incentive model strategy, servitization strategy, and control strategy. Moreover, these findings are summarized in a contingency framework that explains which types of challenges that can be addressed with which strategies based on the specific prerequisites of each collaboration.

Future value creation of German energy companies through smart home applications

The existing value chains of the energy companies are eroding. Trends such as digitization, big data and AI have long since arrived in the energy industry. These demanding framework conditions are increasingly forcing energy companies to introduce new business models. A possible business model lies in smart home applications. This paper analyzes the added value of smart home applications for customer loyalty of energy companies and electricity customers, as well as to identify obstacles in the context of practical implementation. This paper examines smart home applications and the intelligent control and integration of photovoltaic systems. Above all, the avoiding of peak loads will play an important role in the energy grids of the future. The methodology describes the necessary framework conditions existing for the generation of digital innovations. Moreover, it examines the factors leading to increased customer loyalty through the value-added services and offers a load shifting potential to relieve the distribution networks. It is found that the value-added services can offer increased customer loyalty to the energy companies. Even though smart home-based services are highly relevant in a rapidly growing target market, there will only be a broad acceptance of them for the load control, if the user is offered an added value, for example by load-variable electricity tariffs. Energy companies wishing to position themselves as digital service providers must have smart home-based services such as intelligent load control and load-dependent tariff models, which enable users to add a financial value.

Exploring investor views on accounting for R&D costs under IAS 38

Research and development (R&D) is increasingly significant in the global economy and its accounting treatment has always been, and remains, a contentious area. The standard governing its accounting treatment under International Financial Reporting Standards is IAS 38 Intangible Assets. This was issued in 1998 and remains in force today. This study contrasts the thinking of the standard setters in the historical development of the standard with evidence through interviews with contemporary buy-side and sell-side equity investors. Specifically, we examine the decision-usefulness of R&D accounting information to them, and especially that of the capitalisation of development costs. This unique insight reveals that investors find R&D accounting information useful for decision making, are supportive of the principle of the mandatory capitalisation of development costs, subject to meeting specified conditions, and are very much opposed to a US expense all treatment. However, they do not regard such assets as providing an adequate signal of future value creation to them, which was the expectation of the standard setters. This is attributed to the perceived vagueness and subjectivity of the conditions currently in the standard. The theoretical framing of dissonant translation is employed to unpick these tensions. The study makes significant contributions to the standard setting and R&D strands of the financial accounting literature and the findings raise important policy implications.

Value Creation Framework and Roles for Smart Services

For several years now, the two megatrends of servitization and digitalization have had a major impact on business in manufacturing. Servitization means the addition of complementary services to products aiming for increased revenues, margins, and differentiation from competitors. Digitalization refers to the rapidly evolving information and communication technologies, enabling intelligent and interconnected products. The convergence of the two megatrends leads to so-called smart services; digital services that generate additional value from data of smart products. Smart services enable new promising business models going far beyond traditional services. Consequently, the value creation in manufacturing is shifting drastically. Manufacturing companies striving to offer smart services need to plan for their future value network (VN) and must define their position in it. However, this is not a trivial matter. Manufacturing companies must extend their often historically grown value creation with new mechanisms, such as processing machine data, and structures, such as digital platforms. Hence, the complexity of the underlying VN of a successful smart service business is far greater than traditional VNs in manufacturing. To tackle these challenges, our research aims for a design support for smart service VNs. The research follows the guiding principles of design science research, utilizes the design research methodology, and integrates a systematic literature review. This results in a framework giving a general understanding of smart service value creation. The framework is supplemented by 44 value creation roles for smart services, which help planning the VN and positioning of the focal company in it. Hence, we empower managers to design their companies’ future value creation for smart services. The framework and roles further extend the scientific knowledge base regarding the understanding of value creation through and with smart services.

Horizontal Value Creation through IoT and Digital Twin Data

This paper describes the solution approaches for horizontal value creation using IoT and digital twin data. First, the various lifecycle stages that a product goes through are described. A classification of digital twins is then carried out. On this basis, the horizontal and vertical data integration is described, which forms the basis for future value creation.

The prospective value creation potential of Blockchain in business models: A delphi study

Blockchain technology is gaining awareness and drawing attention in corporate practice and academia. Both fields expect a fundamental impact of blockchain on business and society. However, since blockchain research within the business model context is still in a nascent stage, more in-depth insights is required of blockchain's impact on firms’ value creation and value capture. This study builds on a Delphi approach and aims to identify the future value creation potential of blockchain for organizations by 2030. Based on expert interviews, workshop insights, and prior literature, we developed a meaningful set of 36 projections of blockchain implications for business models. Our findings, based on the elements of the PEST framework, predict massive efficiency gains through technological progress and promise complementary offerings through various novel combination possibilities, novel forms of collaboration and business model opportunities, and a dissipation of the significance of blockchain types. The combined use of blockchain solutions with other technologies is likely to serve as the basis for ecosystem developments. Our projected finding is that the internet of value will replace the internet of information by 2030. Thereby, our research contributes to technological forecasting and strategic planning by providing managers clear indications of blockchain developments and action recommendations.

Foreign Venture Capitalists and Access to Foreign Research: The Case of US Initial Public Offerings

AbstractWe investigate whether foreign venture capital (VC) firms create value above and beyond the value created by domestic VC firms in US initial public offering (IPO) firms. Contributing to an emerging literature on the role and effects of foreign VC firms, we study whether such VC firms enhance innovation by their investee firms. While high levels of innovation are a prerequisite for future value creation, as well as for maintaining the firm's competitive advantage, the extant literature nevertheless suggests that investors struggle with valuing innovation input when firms are about to go public. Ultimately, this results in greater rather than lower IPO underpricing. We argue that foreign VC firms, especially those from countries with high patent activity, increase the innovation levels of their investee firms. In turn, their presence in the VC syndicate signals the greater likelihood of the investee firm successfully turning innovation input (i.e. research and development (R&D) expenditures) into innovation output (i.e. patents), resulting in lower IPO underpricing. Studying a sample of 995 US IPOs conducted during 2000–2016, we find strong and consistent support for the above arguments.

Entegre Raporlama ve Kamu Bankalarında Uygulanabilirliği Üzerine Karşılaştırmalı Bir Araştırma (A Comparative Research on Integrated Reporting and Its Applicability in Public Banks)

Purpose – Integrated reporting, which develops on the basis of integrated thinking, is a modern reporting type with a holistic perspective in which financial and non-financial information are presented together. Integrated reporting is the result of the transformation of reporting from a shareholder approach to a stakeholder approach, with the paradigm shift in the world. With integrated reporting, organizations briefly demonstrate how they will create value for their stakeholders in the short, medium and long term. The purpose of this study is to analyze the applicability of integrated reporting in public banks with a case study. In the research, the 2019 integrated reports of two public banks, Vakifbank and Ziraat Bank, were analyzed comparatively. Design/methodology/approach – Content analysis from qualitative methods and phenomenology as a research design were used in the study. The method includes an inductive approach, generalizations are reached as a result of detailed examination of the data, and provides a realistic and holistic presentation of the events and facts. The method is considered to be appropriate because it allows for the answer of research questions. Findings – As a result of the research, it was concluded that integrated reporting is applicable in public banks. Although it is seen that both banks attach importance to strategic priorities in their integrated reports, it has been determined that the reports are not standardized. Discussion – A few more reporting periods are needed to evaluate whether integrated reporting is a sustainable approach. In the research, it was concluded that the information regarding the future value creation process should be given more clearly and concisely for the stakeholders, who were determined to be customer and shareholder focused on integrated reports.

Drivers of In-Hospital Costs Following Endoscopic Transphenoidal Pituitary Surgery.

To characterize the patient and clinical factors that determine variability in hospital costs following endoscopic transphenoidal pituitary surgery. All endoscopic transphenoidal pituitary surgeries performed from January 1, 2015, to October 24, 2017, with complete data were evaluated in this retrospective single-institution study. The electronic medical record was reviewed for patient factors, tumor characteristics, and cost variables during each hospital stay. Multivariate linear regression was performed using Stata software. The analysis included 190 patients and average length of stay was 4.71 days. Average total in-hospital cost was $28,624 (95% confidence interval $25,094-$32,155) with average total direct cost of $19,444 ($17,136-$21,752) and total indirect cost of $9181 ($7592-$10,409). On multivariate regression, post-operative cerebrospinal fluid (CSF) leak was associated with a significant increase in all cost variables, including a total cost increase of $40,981 ($15,474-$66,489, P = .002). Current smoking status was associated with an increased total cost of $20,189 ($6,638-$33,740, P = .004). Self-reported Caucasian ethnicity was associated with a significant decrease in total cost of $6646 (-$12,760 to -$532, P = .033). Post-operative DI was associated with increased costs across all variables that were not statistically significant. Post-operative CSF leak, current smoking status, and non-Caucasian ethnicity were associated with significantly increased costs. Understanding of cost drivers of endoscopic transphenoidal pituitary surgery is critical for future cost control and value creation initiatives. 3 Laryngoscope, 131:760-764, 2021.

Administrative Expenses and Firm Value: Evidence from Chinese Stock Market

Analyze the components of administrative expenses and find that some expenditure in administrative expenses, such as employee training expenses, employee education expenses, technology development expenses, etc., which have a long-term positive effect on improving the relationship between enterprises and the government or banks, enhancing employee satisfaction, improving corporate technology, and enhancing corporate competitiveness, so as to create future bene ts for the enterprise. Based on the empirical analysis, we prove that the previous administrative expenses are positively related to the current operating profit. Through data analysis and empirical research, it shows that: (1) administrative expenses are positively associated with future operating performance; (2) the capital market can partially recognize the future value creation ability of administrative expenditure so that the administrative expense future value has significantly positive pricing coefficient; (3) the capital market fails to fully recognize the future value created by administrative expenditure so that the highest portfolio can experience significantly positive future excess return.

Human capital at work: performance measurement, prospective valuation and labour inequality

ABSTRACT The proximate roots of performance measurement lie in a 1980s shift in management accountancy away from lagging and financial indicators towards leading ones that indicate potential for future value creation, especially regarding intangible assets and functions. This paper proposes that such innovations in accountancy are not merely technical but are driven by contextual economic imperatives. It shows how PM articulates with capital owner demand for maximal value creation under the shareholder value model of the corporation rationalized through neoliberal economic thought and new economy discourses. Performance metrics cascade through organizational levels so as to highlight the apparent contributions of actors held accountable for aspects of value creation. They allow a subtle shift away from Taylorist operational statistics based on demonstrated achievable values towards prospective calculative rationality that enjoins all to manage their own capacity to increase value amid expectations of continuous improvement. Quantifying labour by putative performance outputs also allows for differential levels of reward and the marketization of wage relations favoured by agency theory. It has been central to new ways of eliciting more output for less reward from gig economy and neotaylorist workers, while also enabling the emergence of the equity-owning ‘superstar manager class’ that Piketty sees as distinctive of contemporary inequality. Its members largely configure and benefit from performance-related pay frameworks that reward executives for minimizing costs relative to ‘maximizing’ of the value chains they oversee.

Future Scenarios of Value Creation in Mechanical Engineering – Derivation of Recommendations for Action

Increasing volatility and individualization has great impact on value creation, resulting in a complex and interdependent corporate environment. The analysis of possible developments of the future becomes a crucial success factor. By adopting the scenario technique this study aims at deriving future scenarios for value creation in the mechanical engineering context focusing on innovation leadership, differentiation through partnerships and hardware supplier status. The consistency is then evaluated and possible options for action are derived by mechanical engineering experts. The results not only support practitioners to understand future value creation but also inspires scientists conducting further research towards implementing futurology into strategy research.

Evolving a Value Chain to an Open Innovation Ecosystem: The Cognitive Influence of Stakeholders in Customizing Medical Implants

While open innovation ecosystems allow firms to harness new external sources of value creation, these external ties can also constrain its ability to adapt its innovation strategy to pursue new opportunities. Here we look at how firms conceive new open innovation models of value creation, and how those efforts are affected by the need to both learn from and educate its external partners. We do so in the context of a potential 3D printing-enabled shift from mass production to mass customization of orthopedic medical implants. Using interviews, observations and archival data from three continents, we document how an incumbent firm approached the economic, regulatory and cognitive constraints on both its existing and future value creation strategy, so as to transform its linear value chain into a more interactive and collaborative ecosystem. We show how the firm used both open innovation and open business models to develop a new value creation logic, and how a delay in freezing this logic allowed it to identify a second, more radical business model shift that it is now pursuing. These results demonstrate how firms and managers can address the cognitive shift needed to develop trans-formative open innovation strategies that require a complex restructuring of a firm’s internal and external stakeholder relationships. In addition to developing a process framework for such changes, we also extend the limited prior research on cognitive strategy in open innovation.