Market Value Creation Research Articles

Social and ethical practices and firm value: the moderating effect of green innovation: evidence from international ESG data

Purpose This study aims to examine the potential effect of integrating social and ethical practices into strategy on the market valuation of environmental, social and governance (ESG) businesses using the moderating effect of green innovation. Design/methodology/approach The sample used consisted of 523 international firms listed on the ESG index and headquartered in North America and Western Europe, forming an unbalanced panel of 7,845 observations spanning the period 2005–2019. The authors run a fixed-effects panel regression model using the Thomson Reuters ASSET4 to test the relationship between societal and ethical practices and the stock market value creation. Similarly, as an extension of the research, this paper exploits two robustness analyzes. The authors tested the dynamic dimension of the data set through the generalized moment method and the effect of the legal system. Findings Evidence reveals a significant positive relationship between societal and ethical practices and businesses’ market valuation. The empirical results indicate that societal and ethical strengths increase firm value with the moderating effect of green innovation and weaknesses reduce it. The results found with the dynamic dimension of the data set indicate the existence of continuity between firm values over time. Research limitations/implications Given the long study period, many firms with missing data were eliminated. To avoid the small sample size, countries with few observations were included, which led to an uneven distribution between observations per country. Practical implications Findings from this paper can help ESG firms to consider their future growth opportunities in a context where the approach of business ethics occupies a central position in business valuation. Originality/value This study is the only study that provides ESG companies with seven different nationalities with evidence for the effect of social and ethical practices regarding market valuation. This paper is also relevant as it addresses the relationship between social effectiveness and financial efficiency, as well as the dynamic effect of this relationship.

PROBLEMS OF FORMATION OF FINANCIAL-INVESTMENT PROJECTION OF A BALANCED SCORECARD IN VALUE-BASED ENTERPRISES OF MINING-METALLURGICAL COMPLEX

The directions of improving the methodical principles of Balanced Scorecard as a system of strategic enterprise management have been highlighted. The need to avoid the simplified mechanistic dividing of the indicators into financial and non-financial ones has been substantiated; the authors have also disputed the corresponding binding of financial indicators mainly to tangible assets and financial strategic prospects, and non-financial indicators — to intangible assets and non-financial projections of the strategy. The criteria of strategic targeting, efficiency and functionality have been defined as key criteria in selecting the BSC metrics.
 The necessity and the possibility of integration of VBM and BSC concepts, which may be implemented through the company’s financial control panel by using VBM metrics, has been substantiated. The unified criteria for selecting VBM metrics for the financial perspective of BSC (i.e. to take into account the investors’ risk and intangible factors of creating the enterprise’s market value; to be easily calculated and efficient; to provide for cascading and motivation) have been determined and their respective comprehensive assessment has been made. The general structure of the investment-financial perspective on the strategy map of a value-based enterprise of MMC has been developed.
 One can highlight specific features of the management perspective of a value-based enterprise. Among them:the «investors» projection or the financial-investment projection serves as the starting point of the cascade of a company’s value creation; unlike the amorphous classical BSC, the proposed pattern is clearly subordinated to the main indicator (EV); the financial-investment projection is represented by a limited number of financial, mostly VBM indicators; the balance of traditional and new metrics; unlike the classic BSC technique, the template developed does not imply a mandatory quantitative predominance of non-financial indicators.
 On the basis of the analysis of interdependence of factors and indicators of the company’s market value (KPIs / CSFs) аbsence of a linear relationship between financial indicators — tangible assets — current cost factors — on the one hand and non-financial indicators — intangible assets — future value factors — on the other, is defined.
 The рossibility to use financial and non-financial indicators to measure both tangible and intangible assets as sources of market value creation is proved.

The Impact of Market Orientation to SMEs Performance with Mediation of Creation Value

SMEs or Small Medium Enterprises are businesses that keep growing in Indonesia. The resilience of SMEs to economic shock makes a lot of people choose this type of business. This study aims to review the correlation between market orientation, value creation and entrepreneur’s commitment to improving SMEs performance. The study conducted through a mediation model of value creation and commitment as the power of the entrepreneur. Respondents of this study are 133 entrepreneurs of creative industry SMEs in Bandung City. Data collection is carried out through questionnaires and processed by path analysis using Lisrel software. The research findings show that market orientation correlates with the improvement of SMEs performance directly and through the mediation of value creation. It is different from entrepreneurs’ commitment that cannot mediate the correlation to SMEs performance. The research results strengthen the control of market orientation on the improvement of SMEs performance with support of value creation

Towards a conceptualization of secrecy in marketing

ABSTRACT A key function of marketing is the management of information between the firm and the market; and what is not communicated is as important as what is communicated. Thus, secrecy – the active withholding of information – is intrinsic and critical to the success of the firm. Yet secrecy has received little attention in the marketing literature. In this paper, we conceptualize secrecy from a marketing perspective, based on the notion of boundaries. Boundary creation, maintenance, crossing, and dissolution adroitly managed are all shown to be potential sources of marketing value creation. A typology of secrets is constructed based upon key boundary characteristics (genesis, visibility, and information) and their relative virtues and vices explored. Then, the notion of legitimacy is introduced to illustrate how management’s use of certain types of secret can be hugely valuable while others can cause serious harm to a firm’s reputation.

Connecting the vital link nodes to superior value creation in private health-care marketing in Ghana: a relationship marketing paradigm

PurposeThis study aims to explore the utility of relationship marketing (RM) practices in achieving customer loyalty (CL) via customer satisfaction (CS) as the mediator.Design/methodology/approachA convenience sampling of 592 customers of private hospitals was used to generate data. Structural equation modelling (SEM) was used to analyse data to generate findings.FindingsThe study establishes a direct positive association between RM practices and CL. The study also found that CS mediates the relationship between RM practices and CL.Practical implicationsThe study reinforces the role of RM as a significant driver of marketing performance in private hospitals.Originality/valueThe results are intended to guide policymakers of private hospitals to manage relationships to gain competitive advantage.

Special Issue: Design, Branding and Marketing: Experience and Value Creation in Design, Branding, Marketing, Corporate Reputation and Identity

Special Issue: Design, Branding and Marketing: Experience and Value Creation in Design, Branding, Marketing, Corporate Reputation and Identity

Market Development and Value Creation for Low Socioeconomic Segments in Emerging Markets: An Integrated Perspective Using the 4A Framework

This article uses the 4A framework (awareness, acceptability, affordability, accessibility) to examine the impact of marketing activities on market development (i.e., access to markets, access to people) and value creation (financial value and relationship value) in low-income segments in emerging markets. Using cross-national survey data spanning mobile phone users in five emerging Asian markets (countries: Bangladesh, India, Pakistan, Sri Lanka, and Thailand), the study findings provide empirical support for the 4A framework for small farmers and business persons (i.e., low-income entrepreneurs) in these markets. The study uniquely contributes to the base of pyramid literature in emerging markets since the 4A marketing framework has not been studied for its effectiveness on micro-entrepreneurs so far. This article also contributes to research and practice by showing how market development and value creation go hand-in-hand for micro-entrepreneurs in emerging markets.

Peran Dimensi-Dimensi Entrepreneurial Marketing dalam Mendorong Kesuksesan Bisnis UMKM di Industri Ekonomi Kreatif

This study aims to analyze the influence of entrepreneurial marketing dimensions, including proactiveness, opportunity-focused, risk-taking orientation, innovation-oriented, customer intensity, resource leveraging, and value creation of Small and Medium Enterprises (SMEs) business success in the creative economy industry. The study also examined the moderating role of company age on the entrepreneurial marketing dimension's influence on SME's business success. The study used survey methods by distributing questionnaires to 265 SME business owners in North Kalimantan. The sampling method uses nonprobability sampling with a convenience sampling technique. Data were analyzed using multiple linear regression analyses and moderated tests using the macro process of SPSS Hayes. The results of this study indicated that in the context of SMEs in the creative industry, customer intensity and value creation play a critical role in business success. Meanwhile, proactiveness, opportunity-focused, risk-taking orientation, innovation-oriented, and resource leveraging found no impact on SMEs' business success. The research also proves that the company's age moderated the impact of customer intensity on SME's success but does not moderate the influence of value creation to SME's business success.

International social entrepreneurship and social value creation in cause-related marketing through personal relationships and accountability

PurposeDrawing on the resource-based view (RBV) and literature on relational embeddedness and network ties, we examine how personal relationships of international social entrepreneurs and accountability of social enterprises influence social value creation in cause-related marketing (CRM) of three UK-based international charities. The study also explores how personal relationships of international social entrepreneurs affect accountability of social entrepreneurship for social value creation of non-profit organizations in the UK context.Design/methodology/approachOur research aimed to inform international social entrepreneurship literature by exploring the impact of personal relationships on accountability and social value creation processes via cause-related marketing (CRM) practices using a case study method. The lack of clearly defined social value creation in social entrepreneurship, and somewhat intangible processes of relationally embedded ties, accountability, and their impact, the case study method is most suited for this study. In particular, inquiry-based investigation surrounding social value, embedded ties and accountability requires systematic and structured dissemination to capture latent constructs.FindingsThe findings show the importance of personal ties in the alignment of social mission with corporate social responsibility between UK-based international charities and commercial organizations across borders. In international social entrepreneurship, social value creation is facilitated by accountability of social goals while trust-based personal relationships assist access to commercial opportunities.Research limitations/implicationsFurther research could examine the role of trust in creating greater social value from an international social entrepreneurial perspective rather than from a solely non-profit social mission. It can also consider additional factors such as gender and cultural capital issues to investigate the role of personal relationships of international social entrepreneurs in the accountability and social value creation of non-profit organizations.Practical implicationsThe need to fulfil social objectives, missions and obligations are central to the involvement of international social entrepreneurs in CRM activities with commercial organizations. Accountability through clear communications serves as the basis for brokering new ties or partnerships within the social relations of entrepreneurs, particularly weak ties rendering trust for third party endorsement and sharing of information. Although partnerships with commercial organizations may create social value in CRM, the reliance on personal relationships may expose international social entrepreneurs to unethical practice beyond immediate relationships and/or opportunistic behavior without formal contracting mechanisms. International social entrepreneurs must therefore match the core values of their social mission with potential partners in their CRM engagements.Originality/valueThe literature on international social entrepreneurship has not considered how social entrepreneurs' personal relationships at the individual level may impact accountability of social entrepreneurship for CRM and social value creation. This study builds on these studies by examining how individual level personal relationships of international social entrepreneurs with external stakeholders influence accountability of social entrepreneurship for CRM and social value creation at the organizational level. This study also builds on prior studies about entrepreneurial networks and network ties by examining the processes in which international social entrepreneurs use their personal relationships to access and utilize external resources for social value creation in CRM. Finally, this study contributes to previous research which provides limited insights into the international social entrepreneurship among organizations with reference to CRM where social value attributes are evaluated by embedded relational ties.

Relationship Corporate Social Responsibility, Strategy on Marketing Performance: Value Creation as Mediation

Social investment by the company will build synergy for people, organizations, and individual which then build the company’s existence. Social investment using social capital also demands to support the company’s success in finding sustainable profits. This study aims to analyze the effect Corporate Social Responsibility (CSR) strategy on marketing performance and value creation as mediation The samples were 115 business media company in Indonesia. The data were collected by interviews and questionnaires. The data were analyzed by path analysis. The results show that CSR strategy has affected on value creation. CSR strategy affects marketing performance. Value creation has effects on marketing performance.

Value creation and destruction in social marketing services: a review and research agenda

Purpose This paper aims to provide a review of the extant literature on value creation and destruction in social marketing services for social change, for the purposes of developing a research agenda for future research in this area. Creating value in social marketing services is now identified as a key focus for social marketing (Russell-Bennett et al., 2009; Domegan et al., 2013), yet work in this area is nascent and conceptual, methodological, and empirical work is needed to advance the research agenda (Zainuddin et al., 2013; 2016). Design/methodology/approach To help shape the future of research on value in social marketing services, this paper appraises the contributions of the current research literature, and identifies gaps in the current knowledge. A systematic literature review was conducted, following the PRISMA protocol for conducting and reporting systematic reviews (Moher et al., 2009). The review covers the areas of value creation in social marketing, value destruction in social marketing, dimensions of value in social marketing, and from value-in-exchange, to value-in-use, to value-in-behaviour in social change. Findings A research agenda for further work in this area is provided within the themes of 1. conceptual development, 2. broadening ontological, epistemological, and methodological foundations, 3. research contexts, and 4. measuring and evaluating value in social marketing services. Within each of these themes, a series of research questions are provided to guide further work in the four identified themes. Originality/value This paper is the first to offer a review of the extant literature on value creation and destruction in social marketing and social marketing services, and offer a research agenda for future work in this area. This paper contributes to services marketing and the development of service thinking as key component of social marketing, and the role that value creation plays in this (Russell-Bennett et al., 2013).

MODEL OF ENTREPRENEURIAL MARKETING ON WOMENPRENEUR

This research revealed the model of entrepreneurial marketing, especially on Moslem fashion womenpreneurs. Recently, the opportunity for women in entrepreneurship with micro and small scale businesses (MSMEs) has increase. Womenpreneur also contributes to the field of human resource management, namely empowering women and playing a role in the nation's economy. The main reason is that they want to be independent, followed by the second rank who says that opening a business, especially the Moslem fashion business, as an effort to increase family income. Implementing the concept of entrepreneurial marketing requires supporting factors, namely market orientation, innovation, value creation, and risk-taking. The purpose of this research is to implement the model of entrepreneurial marketing on womenpreneurs. This research used a descriptive survey method through SEM (Structural Equation Models) analysis. Sample of this research is 209 Moslem fashion womenpreneurs with a small business scale in West Java from different characteristics, both shar'i Moslem fashion (veiled), semi-shari'a and trendy. This research has been reduced the dimensions of previous studies, only focus on market orientation, innovation, and value creation, without risk-taking factors because womenpreneurs have been thinking first before they start the business and they have calculated risk factors. that value creation can be formed from market orientation and innovation. As we can say, market orientation and innovation are important factors in the formation of value creation for women entrepreneurs of small scale Moslem fashion in West Java By applying these concepts, it builds an effective entrepreneurial marketing performance for womenpreneur.

Market Orientation and Value Creation in Improving Business Performance of the Fertilizer Industry in Indonesia

Purpose: This research aims at examining the effect of market orientation and value creation on business performance of the fertilizer industry in Indonesia. Approach/Methodology/Design: This research used observation using time horizon with cross section one shot in year 2018. Unit of analysis in this research is organic fertilizer company or inorganic with company’s management as the observation unit. The survey was conducted to 35 fertilizer companies in Indonesia. Verification analysis was used to measure quantitative data and hypothesis testing by using PLS (Partial Least Square). Findings: The findings showed that market orientation and value creation had a significant influence in improving business performance in the fertilizer industry in Indonesia. In addition, value creation had a greater role than market orientation in improving business performance.. Practical Implications: The result of this research is expected to give implication for business actor of fertilizer industry in Indonesia as an effort to improve its business performance by increasing value creation supported by increasing market orientation. Originality/Value: The result of this research is expected to give implication for business actor of fertilizer industry in Indonesia as an effort to improve its business performance by increasing value creation supported by increasing market orientation.

Borderless Media: Rethinking International Marketing

This article focuses on the impact of digital platforms on international marketing. It describes the evolution of social media and its influence on marketing. After identifying a typology of context for international marketing, the author identifies and describes five dimensions of value creation in marketing: access, affordability, acceptance, awareness, and activation. Finally, this article provides future implications for areas of research in social media and international marketing.

The marketing value creation in the waste management sector – multi-conceptual business model

The concept of marketing value occurred interesting due to a result of the process of transformation of traditional business relationships into specific type of cooperation of enterprises to create multivalued for demanding customers. It also concerns studied companies of the sector of waste collection and recycling, as well as their partners and customers. In the studied case, marketing value is created by enterprises, their cooperants and customers for the purpose of further satisfaction of target market need, in at least three-spherical business model. This model often has multi-concept, or holistic nature while combining relationship marketing, supply marketing, integral, internal, systemic, strategic and social marketing. Companies representing the sector of waste management apply smart technological solutions which result in interactive formation of market value. Smart ways of creation of marketing value, in the sector of waste management enterprises in the environment of IT solutions is the goal of this paper. The main research methods used are case studies.

Influencing Factors of Organizational Performance in Nepal Airlines Corporation

The objective of the study is to evaluate performance influencing factors in Nepal Airlines Corporation (NAC) through mixed research method, qualitative and quantitative analysis. The primary data were obtained from in-depth interview with fifteen government and NAC executives. Secondary data were collected from Nepal Government, NAC publications and International Air Transport Association (IATA).
 
 Revenue generation and passenger movement rate is found with average performance. Motivated employee, entrepreneurial marketing, collective leadership, ownership feeling of government and environmental support were explored as key performance factors. Sophisticated technology, airworthiness, and international standard and recommended practice were found as unique features. Lack of aircraft, unfair political influence and alienation of staffs in unionism were identified the reasons of lacking the business growth.
 
 A performance framework is proposed which comprises entrepreneurial marketing (proactiveness, risk taking, innovativeness, opportunity focused, resource leveraging, customer intensity and value creation), collective leadership, sophisticated technology and sufficient number of modern aircrafts, service reliability and safety, and government support. The study recommends Nepal government to take ownership of NAC, and adopt fair and professional management practice rather than political quota distribution in its governing body, board of directors.

New Generations of Students from the Perspective of Value Co-Creation at University

Summary At the turn of the 20th and 21st centuries, new paradigms emerged regarding the value creation in management and marketing in organizations. They causes also redefining the role of universities as a service organization and participants in the process of higher education (including especially students, lecturers, management). In this context, the current and important research problem appears to be the impact of new generations of students, exhibiting different attitudes and purchasing behaviors from on the image of a modern university. A particular challenge for the higher education organization is therefore the problem not only of creating and delivering the expected value as part of the education service, but the issue of shaping positive educational experiences with the active participation of actors in the entire education cycle. The aim of the article is to identify the attitudes and behavior of the young generation of students at Polish universities and to diagnose their potential in the process of co-creating the value of an educational service. By adopting the paradigm of co-creating a service based on variables such as co-production, relationships and experience, we can determine the possibilities of formulating the strategy and image of Polish universities. In particular we focus on chances of implementing the co-creating concept of an educational service at a higher level from a student's perspective. The article reviews secondary research based on foreign and polish literature and — on this basis — indicates different behavioral students styles and their readiness to participate in co-creating the educational service at the university. The diagnosis and final conclusions refer to the results of studies carried out in 2017 at selected polish economic universities, in the field of management, and published by Polish researchers in reputable scientific journals and books.

Software-Based Innovation, Product Market Competition and Value Creation in the IT Hardware Industry

The emerging dominance of software as a differentiating factor within the manufacturing sector has received some attention in the literature but the specific pathways by which this occurs is still ...

A Concept of Decision Making in Land Productivity: Combining Highest & Best Use and Analytic Network Process

Understanding the concept of using the highest and best market is essential. Market forces will determine the creation of market value. To reach the equilibrium point, what the stakeholder wants is their desire is accep and provide optimal satisfaction (utility). To develop into a commercial property area it is necessary to analyse the most feasible and permitted land use permits, financially feasible and highest land productivity. Highest and best use (HBU) with feasibility requires interrelated criteria, therefore data and indirect consideration are required in additional research. Analytic Network Process (ANP) is a decision-making problem. It cannot be structured hierarchically because it leads to interaction and determines a higher level in the lower element. Not only are criteria that define alternatives as in hierarchy, but this is also an alternative can be important by using Analytic Network Process (ANP). This Paper is a conceptual based on literature review. A set of previous research are analysis to get the synthesis of the highest and best use (HBU) and the analytic network process (ANP) on land productivity decision making. A model is resulted to present the combination of four criteria of HBU into ANP

Targeting Open Market with Strategic Business Innovations: A Case Study of Growth Dynamics in Essential Oil and Aromatherapy Industry

Essential oil and aromatherapy industry is increasingly gaining prominence in the global market. Previous studies have been carried out on the benefits of essential oils in healthcare and as part of the healing arts of many cultures, as a proven method of caring for our physical, spiritual and mental health. To enter an open market and promote the awareness of essential oils and aromatherapy, strategic planning capability is important to drive business growth. This paper utilizes a simulation-based strategic decision support system (SSDSS) to conduct a real-world case study with empirical data and examine the effectiveness of SSDSS applications in supporting market development and business growth with service innovations. Through iterative computer simulations and scenario analysis of healthcare promotion and business development for performance improvement, the effects of strategic business innovations could be systematically analyzed to identify different stages of adopters and effective approaches to achieve the established objectives with market value creation.