Market Value Creation Research Articles

MARKETING VALUE CREATION FOR COMPETITIVE ADVANTAGE OF THAI FOOD INDUSTRY

ABSTRACT Based on marketing value creation, contingency theory and resource based view, this study aims to examine internal environmental factors of a corporation including vision for change, corporate culture, structural flexibility, technological capability, and human resource management. Competitive advantage and firm performance are dependent upon each other. Marketing value creation is a mediator. In addition, demand uncertainty and competitive intensity are moderators as external environment factors. This study concludes that the internal environment factors influence marketing value creation. The external environmental factors benefit a firm and create a competitive advantage. Moreover, a firm seeks efficiency. Entrepreneurs know marketing value creation approach to develop production and marketing for a competitive advantage. Theoretical contributions can be implemented by collecting data for future research. Keywords Marketing value creation; Competitive advantage; Competitive intensity; Demand uncertainty

Intangible-driven value creation: supporting and obstructing factors

Purpose – This study aims to investigate the factors that support or obstruct market value creation through intangible capital. Design/methodology/approach – The paper explores the impact of intangibles and exogenous shocks on corporate attractiveness for investors measured by market value added. Specifically, the relationship between intangible-driven outperformance of companies, measured by economic value added (EVA) and a number of intangible drivers on macro-, meso- and micro-levels is analyzed. It is supposed that the process of value creation is not only confined to companies’ performances. The empirical research was conducted on > 900 public companies from Europe and the USA during the period of 2005-2009. Findings – The study establishes that investment attractiveness is affected by intangibles. It is found that a company’s experience, size and innovative focus facilitate value creation. An unexpected result was revealed concerning countries’ education level, which appears to be an obstructive condition for intangible-driven value creation. Research limitations/implications – The study reveals the significance of industry belonging for intangible-driven value creation. Nevertheless, it does not discover the particular characteristics of industry that influence corporate attractiveness for investors. These issues could be addressed in future research. Practical implications – The findings established in this study extend the understanding of the phenomenon of intangible capital and enable the improvement of investment decision-making. Originality/value – The study emphasizes the holistic framework of market value creation by analyzing a number of strategic crucial factors in line with EVA.

Intangible-Driven Value Creation: Supporting and Obstructing Factors

This study investigates the factors that support or obstruct market value creation through intangible capital. We explore the impact of intangibles and exogenous shocks on corporate attractiveness for investors measured by Market Value Added (MVA). Specifically we analyze relationship between intangible-driven outperforming of companies, measured by Economic Value Added (EVA) and a number of intangible drivers on macro, meso and micro level. We suppose that the process of value creation is confined not only by companies’ performance. It is established in our study that investment attractiveness is affected by intangibles. Our empirical research is conducted on more than 900 companies from Europe and US during the period of 2005-2009. We found out in this study that a company’s experience, size and innovative focus facilitate value creation. An unexpected result was revealed concerning countries’ education level, which appears to be an obstructive condition for intangible-driven value creation. Our findings extend the understanding of the phenomenon of intangible capital and enable the improvement of investment decision-making.

Moral Hazard, Informed Trading, and Stock Prices

We analyze a dynamic model of informed trading where a shareholder accumulates shares in an anonymous market and then expends costly effort to change the firm value. We find that equilibrium prices are affected by the position accumulated by the shareholder, because the level of effort undertaken is increasing in the size of his acquired position. In equilibrium, price impact has two components: one due to asymmetric information (as in Kyle (1985)) and one due to moral hazard (a new source of adverse selection). Price impact is higher when the activist is more productive and when uncertainty about his position is large. When we consider an 'activist' shareholder --- who accumulates shares in order to increase firm value --- we obtain a trade-off: with more noise trading (less 'price efficiency') the activist can build up a larger stake, which leads to more effort expenditure and higher firm value (more 'economic efficiency'). The model implies that activist ownership disclosure tends to improve market liquidity and value creation by activists and helps differentiate productive activists from stock pickers. Shortening the period during which activists can trade, however, hurts economic efficiency.

The value of health and wellbeing: an empirical model of value creation in social marketing

Purpose– The purpose of this paper is to investigate the role of multiple actors in the value creation process for a preventative health service, and observe the subsequent impact on key service outcomes of satisfaction and customer behaviour intentions to use a preventative health service again in the future.Design/methodology/approach– An online self-completion survey of Australian women (n=797) was conducted to test the proposed framework in the context of a free, government-provided breastscreening service. Data were analysed using Structural Equation Modelling (SEM).Findings– The findings indicate that functional and emotional value are created from organisational and customer resources. These findings indicate that health service providers and customers are jointly responsible for the successful creation of value, leading to desirable outcomes for all stakeholders.Practical implications– The results highlight to health professionals the aspects of service that can be managed in order to create value with target audiences. The findings also indicate the importance of the resources provided by users in the creation of value, signifying the importance of customer education and management.Originality/value– This study provides a significant contribution to social marketing through the provision of an empirically validated model of value creation in a preventative health service. The model demonstrates how the creation and provision of value can lead to the achievement of desirable social behaviours – a key aim of social marketing.

Entrepreneurial marketing and social value creation in Turkish art industry

Purpose – The study seeks to extend the comprehension in entrepreneurial marketing (EM) and social value creation through searching the entrepreneurship process in the socially valued art industry.Design/methodology/approach – The study is based on a qualitative method: multiple case study. In total, six art‐related innovative enterprises are chosen in different categories (art school, museum, art fair, art gallery, art media) in the art industry. Common properties of the cases are; creating social value in different scopes; and being pioneer and changing the rules in their fields as the entrepreneurial marketers.Findings – The result of the case study is based on the comprehensive model of entrepreneurship process and the findings are introduced in sub titles: antecedents of the entrepreneurship process; antecedents of non‐profit and for‐profit enterprises; ambidextrous entrepreneurship process; and ambidextrous dimensions of social value creation.Research limitations/implications – The study provides a ...

"Impact of Offshore Outsourcing Scale, Scope, and Vendor Relationships on Firm Market Value Creation"

As outsourcing expands in scale and scope to increasingly higher-end tasks, the outcomes and implications are unclear. The current literature poses contradictory predictions on whether a firm shoul...

Effective Web Management for B2C E-Commerce in India

The web has become a place where many live, play and work. It is the ultimate customer empowering environment and in the emerging world of ecommerce where customers are surrounded with myriad choices, organizations are faced with a challenge of meeting consumer expectations in a highly competitive world. The following study aims at analyzing the ability of website attributes of Ecommerce websites in catering to the process of creating a value proposition for the consumer. For this purpose, the website attributes of a set of 25 websites of E-commerce Companies in India were analyzed. A survey of a focus group of participants who were regular users of E-commerce websites like EBay, Yebhi and Snap Deal etc. helped us in creating a model for calculating a Web Management Score for Marketing Value Creation (WMSMV). The E-commerce sites scoring high on the web management perspective were further studied to analyze their Alexa Rank. Definite correlations were discovered in the case of sites demonstrating a higher Web Management Score (WMS) and subsequently, a better degree of web management. The aim of this research is to understand how ecommerce websites create a value proposition for their online consumers, in order to improve their interaction with them. The findings of this study are expected to support Ecommerce website users, designers, owners, and developers.

The Impact of Rule of Law on Market Value Creation for Local Alliance Partners in BRIC Countries

Market value creation for the local partner in an international strategic alliance (ISA) that takes place in a developed market economy is well documented; however, value creation for the local partner of an alliance in an emerging market (EM) has received less attention. We contend that rule of law is a key driver of value creation for the local partner because weak rule of law in an EM may suppress the foreign partner's willingness to share its valuable knowledge assets, which are a critical source of value for the EM partner. While rule of law directly affects value creation from the ISA for the EM partner, we argue that alliance type (R&D vs. non-R&D) and local partner type (state owned vs. non-state owned) are important moderators of this relationship. We find support for our arguments in an analysis of 902 ISAs in the BRIC (Brazil, Russia, India and China) countries over 1991–2005.

Contribution of CVC, R&D, and their interaction to Market and Profitability Value Creation

Firms operating in business sectors characterized by rapid technological and market changes put premium on commercializing inventions. Such firms create value by delivering new and competitively vi...

The Scandinavian approach to the experience economy – does it make sense?

This article discusses the concept of experience economy in a Scandinavian context and shows how the Scandinavian version of the concept has come about from a mix of three different approaches and theories. In the Scandinavian countries, the experience economy has been developed in a political context and is apparently a popular development policy for local government authorities and regions. The Scandinavian definition links the experience economy closely with cultural activities, and to the expectation of economic return and economic development. This article discusses the Scandinavian definition of experience economy and questions if it makes any sense. The definition of experiences is not clear, which makes the demarcation of the experience economy almost impossible and creates other difficulties in relation to policy. The article shows that the experience economy can follow three different routes to market value creation, and how the growth opportunities for the different experience industries will depend on at least three different trends. Therefore, it can be shown that only some experience industries are growing, and the market value creation occurs in very different ways and to very different extents within, and in relation to, the different experience industries. The greatest growth potential resides probably in the broad value creation in association with the experience industries. However, the experience economy does not lend itself to any consistent definition.

Research of consumer motives and attitudes about tourist destinations

The research on consumer behavior and the consumption system is one of the crucial tasks for destination marketing. The information on consumers' needs, priorities in satisfying them, motives, their solvency and the degree of realized satisfaction represent the basis for the development of marketing strategies and value creation. It is of special importance to identify and clarify the factors that determine consumers' preferences in the process of different options evaluation and the choice of a tourist destination. Consumer behavior and the consumption system are determined by the influence of a large number of factors: geographical, economic, demographic, social, psychological, etc. Only through simultaneous interaction of these factors, the complex processes of translating stimuli in the minds of consumers into their certain reactions in the process of purchasing and using the products could be understood.

Egyptian hotel marketing managers’ perceptions of the Internet’s impact on marketing

While the Internet is having a profound effect on the economies of the developed world, there is less evidence of its impact on developing economies. There is a lack of empirical evidence in terms of what the managers of independent Egyptian hotels are actually thinking and more importantly doing in response of the diffusion of the Internet. This study examines managers’ perceptions of the impact of the Internet on key marketing activities: changes in the conceptualisation of the marketing activity, changes in market definition and value creation. Findings suggest that the impact of the Internet will urge hotels to redefine markets, improve marketing activities and value creation. Although these changes are more dramatic with large hotels, the majority of hotels still use the Internet for informational purposes but they are optimistic regarding the way in which hotels will be marketed via the Internet in the future.

Towards integrated e-marketing value creation process

This study proposes a new approach to ‘integrated e-marketing value creation’ processes on the internet in order to provide insights about how to develop successful marketing strategies in the digital world. The study first discusses the changes in traditional marketing (4Ps) with possible complementary e-marketing elements, and then introduces some new marketing value elements (4Cs). The study discusses each element of how these new marketing value creation elements work in the digital world, along with some managerial suggestions. Finally, the study provides a new discussion on how to utilize today's e-value drivers in the light of the transforming of our understanding of marketing in the digital age.

Comprehensive Disclosure of Compensation and Firm Value: The Case of Policy Reforms in an Emerging Market

Abstract: We set out in the present study to examine the market value of comprehensive disclosure of information relating to the compensation paid to directors and executives. Under the theory of self selection, firms with higher levels of board independence will tend to provide comprehensive disclosure of compensation, thereby leading to lower agency conflicts. Since the authorities in Taiwan chose to adopt a policy of gradual enforcement of compensation disclosure, firms are provided with discretion with regard to any greater levels of transparency that they may choose to provide. We therefore exploit this unique natural experimental setting to examine the effects of compensation disclosure on market value. The evidence indicates that the market provides a higher valuation only to those firms which elect to voluntarily disclose comprehensive information on their compensation practices. However, we also find that even where such disclosure is in excess of the minimum mandatory requirements, lower levels of transparency in the overall disclosure of compensation practices are of very little help with regard to the creation of market value.

Lean production, market share and value creation in the agricultural machinery sector in Brazil

PurposeThe “resource‐based view” (RBV) of firms considers that major operational and organisational advantages are created in the internal environment of a firm. The implementation of lean manufacturing represents the potential for strategic advantage over competitors, especially in craft‐based industries in developing regions of the world. The purpose of this paper is to investigate the relationship between the adoption of lean manufacturing and market share and value creation of companies in the agricultural machinery and implements sector in Brazil.Design/methodology/approachThe paper is based on data collected in a survey conducted across 37 firms in the agricultural machinery and implements industry in Brazil. The data were used within a model for assessing the degree of leanness to test three hypotheses using correlation, regression, analysis of variance and cluster statistical methods.FindingsBrazilian firms and managers in this sector that have supported a transition towards the adoption (and adaptation) of lean manufacturing practices have shown a significant improvement in their business performance.Originality/valueThe paper presents an empirical study where lean manufacturing is investigated and tested from a “RBV” perspective. It demonstrates the application of an emergent model for measuring the degree of leanness and the extent of business improvement. The study and the model are applied to smaller, craft‐based industries and so is applicable in developing countries and regions, in comparison with most literature on lean production in advanced economies. It provides a useful perspective for firms to corroborate and understand the potential benefits that lean manufacturing can bring if adopted.

Outsourcing, competitive capabilities and performance: an empirical study in service firms

In analyzing the relationship between outsourcing and firm performance, different authors have studied the effects that outsourcing can have on the firm. Even if we establish an initial link between outsourcing and representative measurements of the results achieved through cost savings or the creation of greater market value, no author seems to have established a precise relationship between outsourcing and the most representative measures of company performance (organizational and business performance). After reviewing the literature on this issue, we believe that research has undervalued the impact that outsourcing decisions have on our competitive capabilities. After making an empirical study of service firms, this article finds that there is a relationship between outsourcing decisions and company performance which is articulated via the impact of outsourcing decisions on the firm's competitive capabilities.

Marketing and the structuration of organizational learning

A new dominant logic for marketing has evolved, one that sees both firms and customers as resource integrators. Proponents of this new marketing logic have called for the refinement and elaboration of this resource integration concept and a more explicit connection to the interactivity and networking literature. We address this need by exploring these literatures and drawing inferences for value creation. In particular, we explore how value creation in marketing is reliant upon organizational learning. To do this we draw upon structuration theory as a means of explaining the relationship between organizational and individual learning. We then explore how this relationship helps a firm to improve its value creation capabilities. We examine three key aspects of the structuration process of organizational learning: (1) the structural properties that enable and constrain learning practices; (2) the ways in which knowledgeable individuals carry out learning practices; and (3) the social processes in which learning practices are embedded. We illustrate these processes with the example of a typical network relationship dilemma in the construction industry. We then conclude by highlighting the ways in which our framework captures the central role that marketing plays in enhancing the organization’s capacity and capability to engage in knowledge management, organizational learning, and value creation and what that means to both the customer and the organization.

Les cycles de création de valeur des acquisitions

Value creation patterns across acquisition life cycle stages Firstly, this article aims at proposing an analysis of the stock market value creation cycle associated with an integrated approach to acquisition and divestment. Secondly, it seeks to put into light the main determinants of this stock market value creation cycle. Among the different possible determinants, a specific attention will be devoted to the impact of the acquired entity performance on this cycle.

A method for creating buying behavior of customer bykanseiinformation design

PurposeThis paper aims to propose a method forkanseivalue creation to be actually reflected in consumer behavior.Design/methodology/approachLooking at business from akansei(emotional/sensitive) value creation perspective, it is realized that currently in most cases value creation for products or services is not done practically. For most of the products and services put on the market, their value is hardly recognized.FindingsIt has been found that a key factor of the mechanism of value creation is closely related to the design ofkanseiinformation.Research limitations/implications– It is expected that, in the future, the principle ofkanseiinformation design will be further clarified and improved so that this methodology can be used in business by corporations.Practical implicationsIt is pointed out that, if the combination of thekanseiinformation becomes too rough, no matter how brilliant the design of the product itself, it is difficult to arouse consumption behavior in reality.Originality/valueThe paper provides an important aspect to demonstrate the mechanism and its elements for achieving value creation in marketing and sales activities. Some case studies are shown for demonstrating the proposed method.