Value Creation Perspective Research Articles

ESG Performance and Corporate Financialization: A Dual Perspective of Risk Management and Value Creation

ESG Performance and Corporate Financialization: A Dual Perspective of Risk Management and Value Creation

Servitization and product service system: A literature review on value creation

In recent years, the concept of servitization has been widely applied in the management of enterprises. However, changing customer demands and competitive pressures of the market have compelled enterprises to seek innovation. Simultaneously, in the context of the Industry 4.0 trend, the rapid development of digital technologies has led to an increasing number of studies on the integration of servitization and digitization. Therefore, this study, based on VOSviewer, Gephi, Scimago Graphica, and Histcite, analyzes the current state and development trends of research on servitization and product service system innovation from the perspective of value creation. Initially, basic statistical characteristics such as the influential author, geographical cooperation, and highly cited papers are presented by collecting relevant data from the Web of Science core collection database. Subsequently, this study explores the research hotspots and evolutionary trends in servitization and product service system innovation through keyword co-occurrence analysis and cluster analysis. Lastly, from a literature analysis perspective, the application of advanced technologies in servitization, digital servitization from an ecosystem perspective, and the innovative use of microservices architecture in product service systems are summarized and forecasted as research directions, providing theoretical guidance for future research in servitization.

Institutional model of commercial real estate market

The study considers institutions of the commercial real estate market with the aim to develop a descriptive institutional model. Institutional boundaries of the commercial real estate market are outlined. Time limits are determined by the equalization of supply and demand through the dynamics of rental rates. Geographical limits, despite the local character of the market, are determined by the participation of the largest developers. Commodity boundaries form the intended purpose of commercial real estate related to its use by lessees for business. This allows the interconnection of commercial real estate institutions to be considered from the perspective of value creation. By means of land relations, the initial conditions are determined by the institution of the state, which also establishes registration requirements. The developer connects the land supply with the rental market by developing a concept of the object, thus influencing related industries (developers, producers of construction materials). The institution of commercial real estate management ensures the interests of the developer. The composition of its participants is diverse, allowing the investor’s offer to be communicated to potential tenants as a value. The institute of accompanying participants of the commercial real estate market is mainly involved in information exchange between its other subjects; however, this institute is responsible for making the constituent links of the market sustainable. The lessee forms the final product using the value created by the developer (lessor) in the form of the intended purpose and individual properties of the object. Rental rates affect the profitability of commercial real estate, thereby determining the developer’s demand for capital. The results obtained can be used by both developers and researchers. The conclusion is made about the limited institutional role of the investor due to irrational capital raising and transferring these costs to the lessee. The reasons lie both in the strategies of most developers and in the desire to reduce risks through the preferred use of debt capital.

Enterprise social media to foster digital maturity: a value-creation perspective

PurposeIn response to the growing need for organizations to enhance their digital capabilities and the widespread adoption of enterprise social media (ESM) in the workplace, researchers have extensively studied the effects of ESM on various organizational outcomes. Nonetheless, a notable theoretical gap exists regarding the influence of ESM on the development of organizational digital maturity. This paper aims to bridge this gap by conducting a comprehensive literature review to investigate how the utilization of ESM can facilitate the transformation of organizational value-creation processes, thereby contributing to the overall enhancement of digital maturity.Design/methodology/approachUsing the information technology (IT) value-creation framework developed by Mooney et al. (1996) and applying a template analysis methodology as outlined by King (2012), the authors conducted a systematic literature review (Okoli and Schabram, 2010), to investigate the influence of ESM on value creation within the digital business environment.FindingsThe study’s outcomes are structured around a theoretical framework that combines the contingency theory and the sociotechnical perspective to provide a comprehensive understanding of digital maturity. This paper also delves into how ESM facilitates the transformation of organizational value-creation processes, ultimately contributing to the overall progress of their digital maturity.Research limitations/implicationsThis study adapts existing theoretical models to fit the context of ESM and integrates multiple perspectives to provide a comprehensive understanding of its impact. It identifies a convergence in the definition of ESM and offers insights into its various dimensions and effects on value creation. Hence, scholars can use the identified theoretical frameworks and conceptual convergence to guide future investigations into the impact of ESM on value creation, fostering theoretical development and empirical research. Practitioners can benefit from the insights to develop effective strategies for implementing ESM within their organizations, aligning with broader organizational objectives to enhance performance, streamline operations and drive structural changes. Furthermore, both scholars and practitioners can use the identified limitations of the study to identify areas for further improvement and exploration, thus contributing to the advancement of knowledge and practice in ESM and value creation. Limitations of this research include the exclusion of gray literature, a relatively small sample size of analyzed articles, and the restriction to specific databases as per systematic review guidelines, potentially overlooking valuable contributions from alternative sources.Practical implicationsThis paper provides a comprehensive exploration of how ESM can support value-creation processes within organizations. It offers valuable insights to help managers incorporate ESM into their digital strategies and to understand its value-creation effects.Originality/valueAdopting a value-creation perspective and integrating the contingency theory and the sociotechnical perspective to build a comprehensive framework, this research introduces an original approach by showcasing how ESM can facilitate shifts in value-creation processes of organizations, paving the way to contribute to the development of their digital maturity.

Down-Streaming Impact to the Competitiveness of Indonesia Cocoa

The objective of this paper is to provide qualitative and quantitative analysis on the competitiveness of Indonesia cocoa beans post down-streaming push by the Government of Indonesia. Indonesia cocoa has been part of the top three producers and exporters of global cocoa beans and had been shifting into cocoa processed products to create more value. Quantitative analysis from upstream perspective measures the supply concentration and competitive advantage using The Four-Firm Concentration (CR4), Herfindahl-Hirschman Index (HHI), and the model of Revealed Comparative Advantage (RCA) while value creation impacted by down-streaming is based on published data during the period of 2012-2021. The qualitative analysis uses the framework of Global Competitiveness Index to measure the competitiveness gap of Indonesia cocoa sector based on interview with Indonesia cocoa experts consisted of respected government officer, academic, researcher, cocoa trader association, and cocoa farmer association. The result concludes the domination of top four countries on supply side has shifted from “moderately concentrated” to “highly concentrated”; and confirms the improvement of Indonesia cocoa from value creation perspective by down-streaming the export product. Competitiveness gap analysis compares the current condition with ideal condition of industry; as a result, identify there are one area that in line with sectoral environment and three major areas that need to be resolved to close the competitiveness gap especially in the area of productivity and efficiency, institutional framework, and prices. Government should continue the capacity building program to improve smallholders’ capability and monitor the implementation of warehouse receipt program to ensure the partiality to cocoa smallholders.

International related-party trade, institutional differences and performance of foreign-funded enterprises

Based on the resource-based view, this paper attempts to analyze the impact of international related-party trade on the performance of foreign-funded enterprises in China from the perspective of value creation. The findings of this paper are as follows. (1) the greater the proportion of parent company to foreign-funded enterprises’ international related-party transactions, the better the performance of foreign-funded enterprises. (2) As the differences in legal systems increase, the role of international related-party trade in promoting performance is weakening. (3) As cultural differences increase, the role of international related-party trade in promoting performance is increasing. After considering the impact of transfer pricing, the conclusions of this paper remain unchanged.

Unveiling the Impact of Firm Characteristics on Integrated Reporting Practices

In recent years, there has been an increase in the number of research papers on integrated reporting. Integrated reporting improves how companies analyse, plan, and report on their financial performance and offers insights into their potential futures through a multi-capital and value-creation perspective. In this study, a variety of reputable journals were consulted for published research studies on firm characteristics and integrated reporting. This study examined the impact of firm characteristics on integrated reporting. The firm characteristics in this study include firm size, growth, profitability, and governance. Moreover, this study also examines the positive or negative relationship between firm characteristics and integrated reporting. In this study, three measures, including total asset value, net operating income, or market capitalization can be used to analyse the relationship between firm size and integrated reporting. Firm growth can be evaluated by looking at a company’s financial performance and long-term value creation. Besides that, in integrated reporting, profitability is frequently assessed about the company’s influence on numerous stakeholders and its capacity to build long-term value. Finally, corporate governance and integrated reporting share a common goal of fostering disclosure, accountability, and ethical behaviour inside organizations.

Corporate climate risk disclosure: assessing materiality and stakeholder expectations for sustainable value creation

PurposeThis study aims to evaluate the adequacy of climate risk disclosure by providing empirical evidence on whether corporate disclosure meets rising stakeholders’ demand for risk disclosure concerning climate change.Design/methodology/approachDrawing on a triangulated approach for collecting data from multiple sources in a longitudinal study, we perform a panel regression analysis on a sample of multinational firms between 2007 and 2021. Inspired by the Global Reporting Initiative (GRI) principles, our innovative and inclusive model of measuring firm-level climate risks underscores the urgent need to redefine materiality from a broader value creation (rather than only financial) perspective, including the impact on sustainable development.FindingsThe findings of this study provide evidence of limited corporate climate risk disclosure, indicating that organisations have yet to accept the reality of climate-related risks. An additional finding supports the existence of a nexus between higher corporate environmental disclosure and higher corporate resilience to material financial and environmental risks, rather than pervasive sustainability risk disclosure.Practical implicationsWe argue that a mechanical process for climate-related risk disclosure can limit related disclosure variability, risk reporting priority selection, thereby broadening the short-term perspective on financial materiality assessment for disclosure.Social implicationsThis study extends recent literature on the adequacy of corporate risk disclosure, highlighting the importance of disclosing material sustainability risks from the perspectives of different stakeholder groups for long-term success. Corporate management should place climate-related risks at the centre of their disclosure strategies. We argue that reducing the systematic underestimation of climate-related risks and variations in their disclosure practices may require regulations that enhance corporate perceptions and responses to these risks.Originality/valueThis study emphasises the importance of reconceptualising materiality from a multidimensional value creation standpoint, encapsulating financial and sustainable development considerations. This novel model of assessing firm-level climate risk, based on the GRI principles, underscores the necessity of developing a more comprehensive approach to evaluating materiality.

Human capital in knowledge-based firms: Re-creating value post-pandemic

BACKGROUND/OBJECTIVE: In today’s volatile business environment, the competitive advantages of firms are temporary. The top management does not, and cannot, have all the answers to increasingly complex and rapidly changing problem situations facing their firms. Since the COVID-19 crisis, organizations have been under pressure to improve their knowledge management practices to continue creating value. Knowledge management capabilities are essential for business performance and competitive advantage. In order to ensure continuous value creation, we conducted research to identify various drivers and dimensions that were revitalized in the ongoing KM practices post-pandemic. METHODOLOGY: In this study, 81 research papers published between January 2010 and March 2022, have been examined from a knowledge management, human capital, and value creation perspective, aiming to understand how a firm can continue to create value before, during, and after the pandemic. RESULTS/CONCLUSION: Our review identifies critical factors in knowledge management and value creation and how companies generate value by leveraging KM during the COVID-19 pandemic. As a result of the research, the authors describe their findings in the form of a conceptual framework which deals with the various drivers and the factors within the KM architecture.

Automotive manufacturing enterprise financial risk evolution monitoring and early warning simulation: based on the perspective of value chain analysis

The automotive industry value chain, which includes the “upstream suppliers—the middle-stream manufacturing enterprises-downstream customers”, constitutes the closest environment for the automotive manufacturing enterprises. From the perspective of value chain, combined with the idea of system dynamics, we analyze the formation mechanism of financial risk in automotive manufacturing enterprises, construct a financial risk evolution monitoring model based on value stream and construct a financial dynamic early warning simulation model by using free cash flow. The vehicle manufacturing listed companies in 2011–2015 are selected as samples. The empirical research results show that the financial risk situation can be changed by adjusting the value chain structure, that is, the causal feedback of the system, and the result of financial warning may change. The contribution of this paper is to analyze the enterprise financial risk based on the value chain and provide new ideas for the financial early warning of the enterprise from the perspective of value creation.

The mechanism of constructing marine ranching industrial ecosystem based on grounded theory: A case study of Yantai, China

Marine ranching industrial ecosystem is an innovative practice for high-quality construction of marine ranching. Exploring its construction mechanism can provide insight into the sustainable development path of marine ranching, but existing studies have not yet explored it in depth. This study uses the grounded theory research method to investigate the construction mechanism of the marine ranching industrial ecosystem based on the value creation perspective. First, the study found that building the marine ranching industrial ecosystem comprised three stages: industrial selection, industrial integration, and industrial ecosystem construction. In each stage, marine ranching enterprises put forward practical value propositions around the needs of each stakeholder, actively promote value creation, and realize value sharing with stakeholders. Second, upgrading the value proposition is the root driver for the dynamic evolution of the three stages of industrial selection, industrial integration, and industrial ecosystem construction. Third, the marine ranching industrial ecosystem can combine the resources of different stakeholders, coordinate the power of all parties, and support the development of the modern marine fisheries industrial system. Fourth, regarding marine ranching enterprises, taking social responsibility is not at the expense of economic benefits. The efficient operation of the marine ranching industrial ecosystem can balance economic, social, and environmental benefits. This study provides practical ideas for the construction and efficiency improvement of the marine ranching industrial ecosystem.

Exploring the Influence of Smart Product Service Systems on Enterprise Competitive Advantage from the Perspective of Value Creation

With the continuous development of information and communication technology, the development of smart product service systems (smart PSS) has become a crucial approach for enterprises to establish a competitive advantage. However, there is still a lack of clarity regarding the impact process of smart PSS on competitive advantage. This paper aims to explore the impact mechanism of smart PSS on competitive advantage from the perspective of value creation, using an intelligent connected vehicle supplier as a case study. The findings reveal that the composition of smart PSS, including smart technology, smart products, and smart services, influences competitive advantage through the value creation process, which involves relationship construction, relationship operation, and value release. Under the smart PSS environment, changes occur in subject relationships, resources, and key elements. In the context of smart PSS, deep cooperation between enterprises and partners focuses on ecological advantages, while general cooperation emphasizes benefit advantages. This research provides valuable insights into the impact of smart PSS composition on competitive advantage and offers reference values for organizations to establish competitive advantage objectives.

Two views of supply chain resilience

ABSTRACT The purpose of this paper is to explore adaptation-based and stability-based views of supply chain resilience to analyse what insights these different perspectives, individually and collectively, offer for theory and practice. In the stability-based view, resilience is triggered by disruptions and performance deviations to return to some ‘normal’ states. This view accounts for known-known uncertainty. The adaptation-based view shifts the focus from avoiding oscillations and recovering some stable states toward proactive adaptation and performance persistence. The adaptation-based view aims at designing structurally adaptable networks with process flexibility and actively used redundancy. It considers resilience from the value-creation perspective accounting for unknown-unknown uncertainties. Stability-based approach views resilience as an outcome or quantity. Adaptation-based approach considers resilience as a property or quality. A combination of stability- and adaptation-based approaches is imperative for building a strong supply chain immunity through an integration of general protection and adaptability. These approaches complement each other depending on the knowledge of and attitude to uncertainty by decision-makers. A combination of the two views helps consider resilience both as a quantity to measure how sick the supply chain is and to understand how the resilience comes about to ensure the quality of the network health and viability.

Resource flows in a multi-directional integrated value creation model

This research reveals a multi-directional value creation model that highlights the role of customers as partners in a network of reciprocal resource exchanges. Customer-partners are conceptualized as customers that go beyond purchasing and using a product or service. They voluntarily engage end-customers to help the end-customers use the firms’ products and services, or to otherwise solve the end-customer’s problems with the firms’ products or services. To illustrate the importance of the customer-partner to the value creation process, the authors integrate various value creation perspectives with social and resource exchange theories to illuminate the various resources exchanged when firms and their various types of customers engage in social interactions. The resultant model is derived from a netnography in the context of a high-tech firm’s online support community. Findings point to three important activities (platform design, customer profiling, and platform engagement) for firms to consider if they hope to successfully integrate their customers in the value creation process.

The study of value network reconstruction and business model innovation driven by entrepreneurial orientation

The impacts of business models on the successes of companies are convincing. Business Model Canvas (BMC) provides the basic framework that describes business logic. Yet it lacks an academic understanding of the internal structures of business models. This paper uses the grounded theory method, qualitative analysis as well as entrepreneurial orientation theory to conduct an individual case study on SHEIN’s business model. The research shows that SHEIN accurately addresses the customer pain points and customer benefits of fashionable women, and gains the trust of end-users by integrating its supply chain based in China. Entrepreneurial orientation drives SHEIN to set up its value network. From the perspective of value discovery, SHEIN accurately targets segmented customer groups. The enterprise reaches end users through social networks and establishes customer relationship with high viscosity. From the perspective of value creation, SHEIN reconstructs the value network, delivering great shopping experiences with low costs. From the perspective of value acquisition, SHEIN has scalability in cost structure and expandability in revenue source. The research found that SHEIN has occupied the low-end market of fast fashion through low-end entry, and is moving to the mainstream market of fast fashion through customer group upgrading, design upgrading and supply chain upgrading, bringing competitive challenge to the fast fashion market incumbents. The innovation of this research lies in: First, the Business Model Iterative Canvas (BMIC) could interpret the business models and their logic in-depth. Second, the research reveals how the competitive advantage is created through value network reconstruction.

Controversies about the relevance os esg from the perspective of value creation in the stakeholders capitalismo model

This essay aims to analyze the management possibilities for stakeholders in the creation of value in the Brazilian beef chain. The systematic review of the literature, with the help of bibliometric research, made it possible to extract the central point of the controversy on the subject through the questioning: the paradigm of the Stakeholders Theory, from the perspective of the Stakeholders Capitalism model, by incorporating the assumptions of ESG in the chain of beef will be able to create value and contemplate the economic, social and environmental dimensions or will it be restricted only to inoperative discourses based on challenges to be faced without practical purposes? In epistemological terms, the partial results identified in the review point to two opposite directions, which are characterized by views that can be called realistic and idealistic, respectively. The contribution of the research is to critically discuss the managerial implications and the theoretical possibilities of adopting humanistic reference procedures (ESG and Stakeholder Capitalism) and, as a result, the updating of models that present themselves in the new contemporary competitive scenarios in which the pragmatic aspects of business seem to manifest an imperative need to be associated with social and environmental aspects.

Exploring social value and their enablers as business models for sustainable water supply projects

PurposeThis work aims to understand how social value is created and delivered using community-based water supply projects. It examines social value creation given the enabling concepts – value co-creation and service ecosystems as business models for infrastructure.Design/methodology/approachInductive reasoning, including qualitative research design, was applied to two water supply projects. The qualitative stage created social value co-creation features using the purposive sampling of 72 semi-structured interviews.FindingsThe qualitative analysis features social value co-creation, which includes a sense of social unity, end-user empowerment, Behavioural transformation, and knowledge transfer. Although value destruction also emerged while examining social value co-creation, the research identifies the “red flags” and value contradictions that must be avoided.Research limitations/implicationsThe enablers of sustainable infrastructure projects should include social value, service ecosystems and value co-creation.Practical implicationsThere is a need for the government and non-governmental organisations to create enabling platforms that involve a planned dialogical communication process supporting the development and enhancement of relationships of stakeholders to maximise social value from infrastructure projects.Originality/valueThe work offers a widened perspective of social value creation and a new framework called “Social value co-creation/destruction” (SVCC/SVCD) as the business model for sustainable infrastructure projects. It is the first attempt to illustrate social value creation in construction from service ecosystems and value co-creation perspectives.

Using machine learning to create and capture value in the business models of small and medium-sized enterprises

Start-ups have revolutionised many economic ecosystems, becoming innovation pioneers around the world. Most are based on data-driven business models, particularly relying on machine learning technologies. However, not all start-ups that use machine learning technologies manage to create and capture value. The existing literature on the use value enabled by information technologies does not take into account the unique capabilities of machine learning. The theory of data network effects offers a promising explanation of how to create value using machine learning. However, it does not explicitly describe how to capture value using machine learning. In contrast, business model theory explains how companies use technologies to create and capture value, but not specifically through the use of machine learning technology. Therefore, this study aims to improve the theoretical understanding of the key drivers of value creation and capture in start-ups with business models driven by this kind of technology. Statistical techniques are used in a sample of 122 start-ups to explore the theoretical relationships between these two theories. The analysis reveals the link between specific value creation and capture factors of the two theories, such as efficiency, novelty, and performance expectancy. The study also provides evidence of the need to adopt a co-evolutionary perspective of value creation and capture through the use of machine learning.

Beyond the nexus family – business: introducing the family business service ecosystem

PurposeExtant family business research focuses on the understanding of value creation through the binary interactions between the family and its business (the family – business nexus). This article addresses this issue by expanding the understanding of value creation beyond the family-business nexus to that of value creation among a wider set of stakeholders (the family business service ecosystem). It recognizes the multi-faceted nature of family businesses and conceptualizes a value creation process through a broader scope of internal and external stakeholders.Design/methodology/approachThis research theoretically connects Business Model Innovation (BMI) and Service dominant logic (SDL) as foundations of an ecosystem approach of value creation established through collaboration, coproduction and co-creation based on Value in Use (ViU). The authors then present the FB Service Ecosystem BM.FindingsThis research generates an overarching model of value creation and integration that reflects and enacts the purpose of the family firm’s project through interactions with ad hoc internal and external actors as possible Third Avenue of value creation, transcending the family versus business paradox. Termed FB Service Ecosystem, this overarching model can be at the forefront of economic, ecological and societal transition, by tacitly transmitting such BMs through their networks of stakeholders. The FB Service Ecosystem is important because it can support the transition of economies and societies based on service, collaboration and meeting multiple stakeholder needs.Originality/valueThis research addresses the dichotomy between financial and non-financial outcomes and between agency and stewardship. It transcends this paradox to offer an inclusive value creation perspective considering a wider set of internal and external stakeholders based on reciprocal service provision and co-creation of mutual value, foundations of service dominant logic, among actors of a service ecosystem federated by and around the family business, termed Family Business Service Ecosystem.

CEO talk of sustainability in CEO letters: towards the inclusion of a sustainability embeddedness and value-creation perspective

PurposeThis paper aims to examine how CEO talk of sustainability in CEO letters evolves in a period of increased expectations from society for companies to increase their transition towards becoming more sustainable and to better account for progress and performance within the sustainability areas.Design/methodology/approachBy adopting an interpretive textual approach, the paper provides a careful analysis of how CEO talk of sustainability in CEO letters of large listed Swedish companies developed during 2008–2017.FindingsThe talk of sustainability is successively becoming more elaborated, proactive and multidimensional. CEOs frame their talk by adopting different perspectives: the distinct environmental, the performance and meso, the product-market-oriented and the sustainability embeddedness and value creation. The shift towards an embeddedness and value-creation perspective in the later letters implies that the alleged capitalistic and short-sighted focus on shareholder value maximisation might be changing towards a greater focus on sustainability embeddedness as an important goal for succeeding with the transition towards a sustainable business.Practical implicationsThe findings are relevant for policymakers and government bodies when developing policies and regulations aimed at improving the positive impact of companies on global sustainable development. Findings are also useful for management teams when structuring their sustainability talk as a response to external pressure.Social implicationsThe findings provide relevant input on how social norms, values and expectations are shaping the corporate discourse on sustainability.Originality/valueThe findings of this study contribute to an increased understanding of the rhetorical response in influential CEO letters to the surrounding sustainability context, including new national and international policies as well as sociopolitical events and discourses related to sustainability. This offers a unique frame of reference for further interpretational work on how CEOs frame, engage in and shape the sustainability discourse.