Value Creation Perspective Research Articles

How Does Value Creation Manifest Itself in the Nexus of Sport and Business? A Systematic Literature Review

Sport is a widely used as a vehicle for promoting business. Global brands invest tens of millions of euros in high performance athletes, top teams, and popular sporting events. Studies have also shown the potentiality of sport in the business context. However, relatively few studies have focused on the interaction of business and sport from a value-creation perspective. Knowledge focusing on value creation within and through sport is scattered throughout literature and a systematic understanding of how value creation manifests itself in a business context is lacking. Using a systematic literature review and inductive analysis of 44 empirical studies, the article presents six identified topics that represent the various angles to value creation in the nexus between sport and business. The topics are 1) the many shades of value, 2) brands and sponsorship as value-creators, 3) the value of CSR in and through sport, 4) sport as a network and platform, 5) sport for developing organisations internally, and 6) value congruence and identification. The article contributes to both business management and sports management. The article proposes theoretical and managerial implications and identifies avenues for further research.

Intellectual Capital as driver for controlling managers' performance. An innovative approach

The purpose of the paper is to analyse how Intellectual Capital (IC) of contemporary companies can be used as management control tool, by proposing it as a driver for sport and financial performance from a value creation perspective. Through a quantitative method with an empirical application, the research investigates the football industry. The IC of professional football clubs has been identified in three components: the first team players, the brand and the right of qualification for the competition on sporting merit. The outcomes of the new model based on IC enhancement allow defining a new use of it as management control tool and a driver for clubs’ managers, overcoming the traditional models of traditional objective functions, which do not consider the managers’ role. Furthermore, the new objective function, defined by the research, allows managers to make strategic decisions finalized to achieve clubs success in compliance with ownership aims. Therefore, this study provides a control tool and a driver for managers’ performance that can be used by company ownership.

Improving Capital Budgeting Through Probabilistic Approaches

This article advocates the multiple benefits of applying probabilistic approaches to capital budgeting through enriching the deterministic framework with a stochastic modeling of main impacting inputs (including a methodology for selecting the most important inputs to be modeled stochastically). The essential limitations of the deterministic capital budgeting methodology are presented: behavioral biases (optimism, asymmetric probability distribution, etc.), incomplete view of the risk return profile, neglecting real options (be it to evaluate a project or to reshape it in a value creation perspective), portfolio diversification impact, etc. Through some selected examples, we illustrate how each of these limitations can be mitigated thanks to probabilistic approaches leading to a better decision-making process and ultimately more value creation.

Cuentas por cobrar e inventarios en la rentabilidad y flujo de caja libre en las empresas de cerámica de Cúcuta

El presente artículo presenta resultados preliminares de un proyecto de investigación cuya finalidad fue el análisis de la liquidez de las empresas de cerámica de Cúcuta; dada la importancia del sector cerámico en Norte de Santander en términos de Producto Interno Bruto y generación de empleo se analizó el efecto de las cuentas por cobrar e inventarios en la rentabilidad y flujo de caja libre de las empresas de Cerámica de Cúcuta. Desde la perspectiva de generación de valor, se revisaron las cifras de los estados financieros determinando el comportamiento de las cuentas por cobrar, de los inventarios y como estas influyeron en la rentabilidad y flujo de caja libre de las empresas de cerámica de Cúcuta. Se realizó una investigación descriptiva y correlacional. Se tomó una muestra intencional a la empresa Cerámica Italia S.A., por el volumen de sus ventas, exportaciones, la generación de empleo directo e indirecto y por ser catalogada la única gran empresa de productos cerámicos del departamento Norte de Santander. Se caracterizaron de cuentas por cobrar, inventarios, rentabilidad y flujo de caja libre y mediante la aplicación de relaciones del coeficiente de correlación se determinaron la relación de dependencia de la gestión del efectivo de la empresa, la rentabilidad y flujo de caja libre. El estudio permitió conocer, desde el enfoque de valor, la generación o destrucción de valor de las empresas de cerámica de Cúcuta mediante el análisis del flujo de caja de estas en el periodo estudiado, así como la relación e interdependencia entre las cuentas por cobrar e inventarios y las variables financieras.

Customer Co-Creation: A Value Creation Perspective

Forces like globalization, deregulation, convergence of technology and evolution of success have shaped the international markets extensively and made a large number of product and service choices readily available to the consumer across boundaries. However, with these forces coming into play, an average consumer is not satisfied with the consumption of the products offered to him. Today, Consumers are more aware and actively search for information to make more informed purchase decisions. Web 2.0 has revolutionized consumer interaction with available products and services and lead to consumer empowerment. With Consumer empowerment, comes the contemporary view of the value creation process; consumers are no longer passive members of a value creation process, they participate proactively with the company to create value. Consumer Co-creation has transformed today’s market from a firm-centric perspective to a consumer-centric perspective, where the consumer has evolved as a competence. Customer Co-creation has become the driving reason for success, our research delves into exemplars to display the impact Customer Co-creation has on the company.

Exploring Business Model Evolution Mechanism from the Perspective of Value Creation: A Case Study of Chinese Circulation Firm

Exploring Business Model Evolution Mechanism from the Perspective of Value Creation: A Case Study of Chinese Circulation Firm

A Literature Review of Representation Models of E-Business Models from the Perspective of Value Creation

Business model is abstract rational cognition about how corporation created, delivered and obtained value and is the enterprise’s core competitive advantages from the perspective of value creation. This article found that research perspective of representation models of e-commerce business model mostly concentrated on value creation perspective and there are two categories: EBMO and e3-value Model. We respectively discuss the two categories in order to make better understanding of the current development in e-commerce business model research.

An Instrumental Perspective of Value Creation through Multi-stakeholder Initiatives

Multi-stakeholder initiatives (MSIs) are an important instrument to improve the social and environmental performance of global supply chains. However, they are often ineffective due to a lack of co...

Social media: Influencing customer satisfaction in B2B sales

Social media have changed how buyers and sellers interact, and increased involvement through social media may yield positive results for sales organizations if salespeople utilize it in facilitating their behaviors. Through the perspective of value creation, we test the mediating effects of salesperson information communication behaviors between social media use and customer satisfaction. Using salesperson-reported data, within a B2B context, we empirically test a model using structural equation modeling. Salesperson's use of social media is found to impact information communication behaviors, which enhance salesperson responsiveness and customer satisfaction. Also, salesperson responsiveness is found to have a positive relationship with customer satisfaction. Findings suggest that social media plays an important role in communicating information to customers, but as an antecedent enhancing salesperson behaviors to increase customer satisfaction rather than a direct factor. This encourages managers to carefully assess goals related to social media use of their sales force.

Taking stock of project value creation: A structured literature review with future directions for research and practice

This paper aims to take stock of what we know about project value creation and to present future directions for research and practice. We performed an explorative and unstructured literature review, which was subsequently paired with a structured literature review. We join several research areas by adopting the project value creation perspective on literature relating to benefits, value, performance, and success in projects. Our review includes 111 contributions analyzed through both an inductive and deductive approach. We find that relevant literature dates back to the early 1980s, and the still developing value-centric view has been the subject of many publications in recent years. We contribute to research on project value creation through four directions for future research: rejuvenating value management through combining value, benefits, and costs; supplementing value creation with value capture; applying a holistic approach to project, portfolio, and strategic management; and theorizing by applying independent models and frameworks.

Complementing clusters: a competitiveness rationale for infrastructure investments

Purpose– The purpose of this paper is to present a novel application of cluster theory and cluster methodology to evaluate large infrastructure investments. The complementing clusters approach, which builds on the notion of infrastructure as connecting isolated “economic islands”, is able to assess the potential for value creation effects of new infrastructure investment.Design/methodology/approach– The author uses simulation analysis based on a unique data set encompassing all employees and employers, as well as cluster mapping, for every pair of “economic islands” being connected by the examined infrastructure investments. The empirical setting is of large fjord crossings in Western Norway, the so-called E39 project.Findings– The empirical findings show that productivity gains are higher when an integrated labor market hosting complementary clusters is formed. Limitations remain regarding the economic integration path.Research limitations/implications– The authors provide an ex-ante analysis using information over the past 10 years. Following the expected infrastructure investments, future research should examine the extent to which productivity gains materialized and the reasons underlying the achieved materialization levels.Practical implications– Current evaluation of large infrastructure investments focuses on transportation economics effects, technical feasibility and environmental consequences. The authors complement this current practice by advancing a theoretically grounded value creation perspective that can affect future evaluation practices.Originality/value– Cluster complementarity-based evaluation is a novel methodology that is applicable to investment decisions which are central for economic development. Cluster analysis of infrastructure investments provides new and valuable data for making such investments decisions.

Customer-centered knowledge management: challenges and implications for knowledge-based innovation in the public transport sector

Purpose – This study aims to explore the role of knowledge management practices in supporting current and emerging passengers’ and customer needs, aiming to create value. Specifically, the research examines the importance of customer-centred knowledge management in the delivery of innovative services and practices in the public transport sector, promoting the role of interactions between mobility stakeholders and travellers. Design/methodology/approach – A theoretical framework is developed and supported by the background literature on customer-centric knowledge management approaches, business model innovation, as well as on inter-organisational and network co-operations. Findings – Results show that the development of sustainable innovation and technologies in the transport sector requires knowledge management practices, which enable the access to knowledge about users’ needs, the mapping and evaluation of innovative knowledge, the promotion of knowledge-based innovation through collective approaches, as well as the acquisition and integration of new knowledge. Research limitations/implications – The conceptual framework developed in the paper remains limited to a theoretical understanding. Further research should empirically examine knowledge issues related to the intangible character and intellectual capital intensiveness of innovation in the transport sector. Practical implications – Researchers, public transport companies and public transport authorities are expected to benefit from this research, by developing mechanisms for customer-centred knowledge management, which is found to lead to innovative services and practices in the public transport sector. Another practical implication regards the adoption of knowledge management practices, leading to technological innovations in public transport, and advancing the level of sustainability in transport systems. Originality/value – The originality of this study lies in the development of a customer-focussed knowledge management framework, which provides a novel perspective of value creation in an attempt to engage researchers and practitioners from the transport industry in the conceptualisation and development of innovative solutions.

Do Board Evaluations Measure Board Effectiveness?

The purpose of this study is to assess to what extent implemented board evaluation processes in Norwegian listed companies have contributed to board effectiveness. Board effectiveness has been measured by using three levels of accountability, namely, board performance, conformance to content, and conformance to context. Multiple case studies were performed in nine large listed companies using the board evaluation process as the unit of analysis. The characteristics of the implemented board evaluation process were compared and contrasted with the characteristics of the board evaluation process identified in the literature. From a value creation perspective, the implemented board evaluations appeared to represent value creation for the board members rather than measuring board effectiveness.

Experiencing Shared and Individual Ownership of Products and Services

This article aims to address paradoxes between experiencing products and services on a shared basis versus owning or having the sole proprietary privilege to consume them. A value creation perspective will be given on how to exploit these “use” and “ownership” of experiences and objects in the design of products and services. Results indicate that “pure ownership” of products and services as a stand alone phenomenon is void. Functional and emotional experiences with these products and services are essential to contextualise and construct the meaning of appropriation/ ownership. With respect to the different value propositions, a significant number of users who aimed for shared ownership of utilitarian experiences, because of economical reasons, were critical of what is being offered to them from a usability and psychological perspective. Users, who had satisfactory experiences with facets of the offering; product, service or combination of it, experienced them within the context of full ownership.

Values-based Value Creation and Responsibility – On the Relationship of “Doing Business” and “Doing CSR”

Against the backdrop of a framework of analysis expressing and promoting the cooperation between the marketing theory and the ethics of responsibility, this paper aims to identify commonalities and differences between “doing business” and “doing CSR”. A value-creation perspective is revealed within this framework designed and employed to facilitate the identification and establishment of responsible business practices (“doing CSR”). The answers to four questions provide support for accomplishing the paper’s objectives: why and for whom, how, and with whom can or should value creation take place?

Network Value Creation through Marketing

Purpose: The article is devoted to critical refl ection on the commonly used value chain model taking the perspective of contemporary role of client and technological advancement in multifaceted organizational development and management. It attempts to outline and thoroughly describe the new perspective of value creation and value management taking into account digital technologies and social media platforms. Methodology: Deductive approach have been implemented, secondary data and sources have been used. Finally, the model of Value chain 2.0 was presented, conceptualized and described from both theoretical and practical sides. Design: The fi rst part of the article is focused on the explanation of present potential of client for any enterprise. The second part attempts to explain the role of virtualization processes, exemplifi ed by social media, semantic web approach or virtual organization in the shift of value creation. Finally, the concept of value chain 2.0 is proposed and discussed. Findings: There is a rapid transformation of value creation where linearity, control and inter organizational resources are gradually being replaced by network value creation where clients’ activities play pivotal role in organization performance and where value is defi ned in much broader way. Practical implications: The conclusions have profound meaning for companies and organizations striving for engagement of clients, partners and employees in value creation processes. The paper presents both theoretical foundations along with practical implications for value co-creation. Originality: The thorough and detailed analysis and interpretation of multifaceted shift and transformation of value creation and value management is presented. The article describes the ways the social media, digital technologies and contemporary marketing infl uence the way organization creates value.

「サービス・イノベーションに関するビジネスの研究」によせて

「サービス・イノベーションに関するビジネスの研究」によせて

Servitization and operations management: a service dominant-logic approach

Purpose – The purpose of this paper is to provide further insight into operations management of the product-service (P-S) transition, known as servitization, and the resulting product service system (PSS) offerings. In exploring the P-S transition, this paper adopts a service-dominant (S-D) logic view of value creation, using it as a lens through which to explore value propositions of the P-S transition and their operations design. Design/methodology/approach – This paper presents an in-depth case study of an original equipment manufacturer of durable capital equipment who, over the last five years, has expanded its offerings to include use- and result-orientated PSS. The research design uses a multi-method approach; employing 28 in-depth qualitative interviews with customers and employees and analysis of texts, documents and secondary data including five years of enterprise resource planning (ERP), call centre and contract data. Findings – The paper identifies ten generic P-S attributes that are abstracted into four nested value propositions: asset value proposition; recovery value proposition; availability value proposition; and outcome value proposition. In examining the operations design for delivery of these value propositions, it is found that the role and importance of contextual variety increases as the organisation moves through the value propositions. Interdependencies amongst the value propositions and differences in operational design for each value proposition are also found. Research limitations/implications – The paper investigates PSS through a S-D logic mindset. First, the paper considers value propositions of PSS not according to “product” or “service” but in terms of how resources (both material and human) are optimally designed to co-create customer value. Second, a value co-creation system of nested value propositions is illustrated. In so doing, the findings have a number of implications for literature on both PSS and S-D logic. In addition, the research adds to the PSS literature through the identification and consideration of the concept of contextual use variety. Practical implications – The paper demonstrates the complexity of the transition from product to service. Specifically, service cannot be seen as a bolt-on extra to their product offering; complexity caused by interactions and changes to the core offering require a systems perspective and consideration of both firm and customer skills and resources. Originality/value – This paper extends existing literature on the P-S transition and its implications for operations management. Notably, it takes an S-D logic perspective of value creation and in so doing highlights the importance and role of contextual use variety in the P-S transition. It also provides further empirical evidence that the P-S transition cannot be treated as discrete stages but is evolutionary and requires a complex systems perspective.

Innovation agendas: the ambiguity of value creation

Innovation is said to be the key to future markets, business development and economic growth, yet the concept of innovation remains abstract and ambiguous. This paper suggests any value creation intentions need to recognise that innovation is a context-dependent process which is implicitly and fundamentally informed through the social agendas and consensus of those involved. To inform this social perspective of innovation value creation, we ask, how does the ‘sociology of innovation’ influence value creation? Using a ‘sociology of innovation’ standpoint, a qualitative study of participants in Australian bioindustry research and development (R&D) was undertaken to explore how the various socio-contextual frameworks and dominant outcome intentions were involved in value creation in the development of new biotechnological innovations. Through the two themes of context and community, we reveal how value creation was shaped by dynamic social processes involving multiple stakeholders and diverse perspectives of innovation. This research improves our understanding of how those involved in innovation development negotiate a complex social milieu of interpretive schemas to leverage various aspects of value creation. These findings present insights to managers and policy makers seeking to advance innovation value and advantages.

Towards an Understanding of Cyber-physical Systems as Industrial Software-Product-Service Systems

New forms of solutions with a declined share of mechanics or hardware and instead an increased share of software and (software-enabled) services on the overall customer value proposition, so called cyber-physical systems (CPS), have been emerging for some time now. Current research highlights the underlying technical challenges but lacks a well-founded conceptualization for CPS that reflects its character as a software-enabled hybrid solution, consisting of software as well as of service and tangible product parts. The latter may facilitate research on CPS from a business-oriented and a customer value creation perspective rather than solely from a technical perspective. For this purpose, the present contribution proposes the conceptualization of the industrial software-product-service system. It is based upon empirical findings as well as theoretical considerations on the concept of industrial product-service systems and substantiated by suggested future research directions, derived with the help of the proposed conceptualization.