Theory Of Value Creation Research Articles

The inclusive entrepreneurial state: collective wealth creation and distribution

Abstract This commentary explores how a new theory of value creation has implications for the distribution of that value. It argues that different theories of value creation lead to different resource allocations and different justifications for them. Thus, to achieve a more equitable distribution of value, a new theory of how that value is created in the first place is needed. This new theory should recognize that value is created collectively, not only by business but also by government and civil society. The state, while predominantly portrayed in traditional economics as a market fixer, has instead often been responsible for actively shaping and creating markets, not just fixing them. Indeed, the most successful capitalist economies have had proactive states that made risky investments, many of which led to technological revolutions. A better understanding of the state's role as a lead risk-taker and innovator (the ‘entrepreneurial state’) can thus also enable a more socially equitable distribution of value.

Quit the Politicking? How Factors Within Strategic Business Unit Teams Shape Returns from Entrepreneurial Orientation

In this study, we examine the entrepreneurial orientation (EO), political behavior, and discretion of leaders within an organization’s strategic business unit (SBU) customer portfolio teams to determine whether and how an SBU team’s political environment affects its performance. Building upon EO as theory of new value creation, we argue that politically charged SBU teams are less capable of translating EO into improved performance. However, we observe the harmful influence of SBU team politics on the EO-performance relationship is partially alleviated when SBU team leaders have greater discretion over their units’ actions. We examine our theoretical model using robust data collected from 320 SBU team leaders and 1181 reporting SBU project managers within a large multi-national information technology firm headquartered in India. Implications for theory and practice are discussed.

The transformation of digital strategy and value creation in omnichannel organisations: the case of the gambling industry

ABSTRACT Digital transformation strategy (DTS) involves redesigning various organisational operations to encompass digital technologies and achieve business objectives. In this study, we explored digital strategy and value creation shifts in omnichannel organisations that aimed to deliver seamless online and on-premises (dual-mode) customer experiences. Using comprehensive data on the gambling industry, we focused on the long-term effects of dynamic relationships among multiple DTS events over time. Building on digital strategy and value-creation theory, we observed and analysed organisational changes linked to technological shifts in omnichannel organisations during turbulent times and disruptions. Herein, we discuss the balance between online and on-premises service channels in terms of a DTS pathway, viewing it as a dual-mode value-creation process. By exploring this dual-mode value-creation process, we contribute to DTS theory and omnichannel operations. Furthermore, we enhance theory by unveiling the impact of shifting digital strategy perspectives on the transformation of omnichannel organisations in dynamic and disruptive business environments. We also present strategic propositions for planning and realising DTS requirements for omnichannel service providers in a broad context.

Publisher Correction: Entrepreneurial orientation as a theory of new value creation

Publisher Correction: Entrepreneurial orientation as a theory of new value creation

In the eye of the beholder: Stakeholder perceived value in sustainable business models

The sustainability of business models is commonly determined by their value creation for a wide range of stakeholders. This value is primarily conceptualised through the aggregated macro-level Triple Bottom Line (TBL) dimensions of social, ecological and economic value. However, few business model studies provide an explanation as to why and how stakeholders see such value in a business model. A problematising review reveals a conflation of the TBL macro-level and stakeholder micro-level of analysis, causing ambiguity regarding contents and recipients of value. This paper adopts a perceived value concept based on micro-level insights from recipient-centric (strategic) management to reform the construct of ecological, social and economic value. The relationships between value perceptions, need fulfilment and need satisfiers are analysed based on the characteristics of subjectivity and heterogeneity, one-sidedness and non-linearity, situation-specificity and transience, spill-over, relationality and experientiality, idiosyncrasy, incommensurability, and interdependence. The analysis underscores a value creation theory based on stakeholder perceptions of need fulfilment. It suggests stakeholder value creation can only be understood through the stakeholders whose needs are being satisfied. The suggested distinction between needs and satisfiers remedies their conflation in previous research and enables a discussion of conditions for sustainable stakeholder value creation.

Leadership in Regional Collaborative Governance: Evidence from the Integration of China’s Yangtze River Delta

Regional collaborative governance is a valuable topic in current theoretical and practical research. Embedding leadership theory into the field of regional collaborative governance can provide a dynamic perspective for understanding the complex collaborative process. The existing research on leadership is not suitable to explain the process of regional horizontal collaboration. Based on the prudent reflection of Bolman et al.’s four-frame leadership theory and Huxham et al.’s cross-organizational leadership framework, and combined with the forward-looking thinking of the public value theory, this study puts forward the leadership framework of regional collaborative governance: Collaboration structure is the carrier, political management is the guarantee, operation management is the tool, participants are the main body, and creating public value is the purpose. This study takes the demonstration zone of green and integrated ecological development of the Yangtze River Delta as a case to verify the theoretical framework. This study has enriched the theoretical map of regional collaborative governance leadership, established a more general theory of public value creation, and had implications for the practice of regional collaborative governance around the world.

Value creation in the metaverse age: a thematic analysis of press releases

PurposeSince Zuckerberg's announcement to change Facebook's name to Meta Platforms Inc. on October 28, 2021, the concept of the metaverse has gained unprecedented popularity in the business world. Tech giants, SMEs and start-ups across various sectors are making substantial investments in metaverse-related technologies. Despite this, scholarly research in entrepreneurship and strategic management regarding the metaverse remains limited. This paper, grounded in value creation theory, aims to analyze how value is generated in the metaverse era.Design/methodology/approachThis paper conducts a thematic analysis of 895 press releases published by LexisNexis between October 28, 2021, and October 28, 2022. The analysis identifies the primary emerging themes related to value creation in the metaverse age.FindingsThe thematic analysis reveals four significant emerging themes concerning value creation in the metaverse age: (1) factors enabling value creation, (2) digital resources contributing to value creation, (3) motives driving value creation and (4) practices of value creation.Originality/valueThis paper represents the inaugural attempt to analyze the metaverse through a value creation lens. Given the substantial investments and growing academic interest in the metaverse, understanding value creation in this context is a pressing concern. Additionally, this study provides valuable insights and suggests critical questions for future research on the metaverse.

Towards a unified theory of supply chain value creation and capture

The value provided to market by competing supply chains determines success. Thus, a comprehensive understanding of how supply chains create and distribute this value is paramount. The purpose of this research is to synthesis the value creation and value capture concepts in a supply chain context. A case study of an extended agribusiness supply chain is used to empirically explore how value is created and captured with a specific focus on the interplay of the two concepts. The results identify the core value creation drivers and enablers, and value appropriation mediators that determine the net value capture of a supply chain. Insights from the exploratory case study are synthesised into an overarching model. Identification of the symbiotic relationship of value creation and value capture advances our knowledge beyond current discrete conceptualizations. By drawing upon value theory and the empirical insights, the proposed unified theory provides novel implications for theoreticians and managerial decision makers.

The role of green strategic alliances and their impact on green organizational identity and sustainability

PurposeThis study aims to investigate the role of green strategic alliances (GSAs) in fostering a green shared vision (GSVis) and green shared value (GSV) and their impact on green organizational identity (GOI) and sustainability.Design/methodology/approachThe authors employed structural equation modeling to analyze data collected through a 60-item questionnaire administered in Portugal and China, allowing the authors to test their theoretical model.FindingsThe findings of the authors' study indicate that green strategic alliances have a positive influence on the development of a GSVis and GSV in both countries. This, in turn, contributes to improved sustainability and the establishment of a GOI. Furthermore, the authors' results demonstrate that these alliances enhance GSV, resulting in enhanced sustainability performance and a stronger green identity, with a notable increase in awareness of environmental and social practices.Originality/valueThis article is innovative as it applies organizational learning and value creation theories to gain a deeper understanding of how alliances can shape the green identity of companies and contribute to their overall sustainability.

Entrepreneurial orientation as a theory of new value creation

Explaining how and why entrepreneurial orientation (EO) enhances firm outcomes is critical as it explicates specific causal mechanisms and boundary conditions. However, despite over 40 years of inquiry, a theory gap is evident in much of the research that links EO to firm performance outcomes. In this study, we inductively derive EO as a theory of new value creation based upon an increase in consumer benefits (or reduction in costs) made possible through a commitment to continuous novelty within an organization’s product-market offerings. In addition to offering a theory explaining how and why EO creates new value through product-market variance as a new causal mechanism within the EO literature, our research affords practitioners greater insight into what to expect from EO and when it may be most gainfully employed in pursuing firm growth. To this end, our study considers relevant boundary conditions to applying our theory and what our theory implies for future research exploring organizational entrepreneurship.

Demystifying the essentials of entrepreneurial orientation and competence for small retailers: evidence from India

PurposeEnvironmental dynamics affect all sectors, and retailing is no exception. Scholarships reveal that, in such turbulent times, entrepreneurial characteristics are essential for business. In academic research, entrepreneurial characteristics like entrepreneurial orientation (EO) and entrepreneurial competence (EC) are seldom evaluated for retailers. This study aims to decode the impact of small retailers’ EO and EC on firm business performance (BP). It also traces the mediation effect of EC in the relationship between EO and BP.Design/methodology/approachThe study executed among 740 small retailers is a pioneering work to trace EO’s efficacy via EC on the retailer’s BP. The present research is a primal work in the Indian context. This work redesigns the EC scale to suit the retail context and evaluate its mediation role in the EO and BP relationship.FindingsExamining the mediation model through structural equation modelling (SEM) adds empirical evidence to entrepreneurial value creation (EVC) theory and throws light on the indispensable qualities required for small business retailers. The outcomes of the SEM model portray that there is an association between the EO, EC and BP.Research limitations/implicationsThis study, though carried out methodically, it is constrained by the ensuing intricacies. The investigation was limited to the small- and medium-retailers engaged in retailing with a floor space from 500 to 5,000 square feet. All three constructs used in the study are measured using the self-reported perceptual scale, which infuses the subjectivity in the data. Exploring the EO and EC of widely dispersed retailers, examining the entrepreneurial character of large-format independent retailers and evaluating financial performance measures through retailers will add value to the study in future.Originality/valueThe study verified the central role of EC in the intangible resource-reward relationship. Among the five pillars of EVC theory, the role of intention and external finance are not considered in this work. The present work explored the EO and EC of existing retailers, and hence intention is excluded. The study concentrates on small retailers, and the role of external financing is not explored. Mishra and Zachary (2014b) opined that the EVC process should be studied in different context and listed out several prepositions. Considering the role of intention and external financing and studying several prepositions spelt out in the theory in varying contexts will throw more lights on the EVC process.

Role of Cargo Owner in Logistic Chain Sustainability

Understanding the factors and characteristics of the business and the influence of cargo owners on sustainable practices in maritime logistics chains is the main objective of this study. The sample consists of 141 valid responses from Portuguese companies that own cargo, freight forwarders and other maritime logistics service providers. Sustainable energy theory, green state theory, and shared value creation theory support the research. The SEM methodology was adopted. The sector’s structure, management characteristics, type of transport contract and the size of the cargo characterize and condition the business of cargo owners and influence the choice of green transport, the use of green fuel and corporate social responsibility. It is important to increase the knowledge and practice of cargo owners in order to understand their business constraints.

Do Global Competitiveness, Cultural Resistance and Capital Financing Drive Value Creation?

Purpose: While value creation has long been a target for most economies of the world, only recently have certain macroeconomic and socio-economic practicalities been discovered to play key roles in propelling value creation. Amazingly, this is a topical theme characterized by a rareness of both theoretical and empirical researches. Thus, the aim of this paper is to assess whether microeconomic and socio-economic practicalities (what has been termed as global competitiveness, capital financing and cultural resistance) drive value creation. Theoretical Framework: The theoretical framework is hinged on the resource-based theory of value creation, which emphasizes the roles financial (capital financing), social (cultural) and human resources play in driving entrepreneurial activities or value creation Design/Methodology/Approach: Three specific types of drivers of value creation are considered; the first being global competitiveness and the others being capital financing and cultural resistance. Using a cross-sectional research design, 545 respondents in six regions in Nigeria were examined to obtain their perceptions on the most relevant driver of value creation. Findings: Result of the approximation chi-square support the factorability of correlation matrix and suitability of the identified variables as drivers of value creation. The factor and principal component analyses showed that while the other two drivers (global competitiveness and cultural resistance) matter for value creation, capital financing was found to be the most relevant driver for value creation, thus reflecting how poor funding of entrepreneurial activities dissuaded value creation. Research, Practical and Social Implication: The study shows that global competitiveness, cultural resistance and capital financing are major drivers of value creation. Originality/Value: The value of the study is vital to governments such that governments and business angels should strive towards offering value creators with adequate funding to steer entrepreneurial activities.

Reconstruction of International Tax Rules to Meet the Challenges of Digital Economy

The current cross-border income tax collection rules of “positive income is levied in the source country and passive income is levied in the resident country” seriously violate the benefit principle in practice. The corporate income tax system is the institutional root of the failure of the above rules. The digital economy with data as the key production factor, invisibility and liquidity, relying on user participation and natural monopoly intensifies the negative impact of the corporate income tax system on the current rules. Starting from the principle of benefit and combined with the theory of value creation, this paper advocates the reconstruction of the cross-border income tax collection rule system, which takes the whole multinational enterprise group as the tax subject, takes the formula distribution as the method, takes the progressive tax rate as the improvement direction, and adopts “positive income is levied in the resident country and passive income is levied in the source country”.

Continuing education as value creation

The continuing education sector explicitly regards itself as serving the goals of lifelong learning. In fact, however, it is oriented towards the market and measures its success according to the sales of its products. The article analyses this market orientation from the perspectives of educational sociology and discourse theory and illustrates its consequences using examples from the Swiss continuing education market. The author develops an alternative approach whereby continuing education is measured according to the value it creates for individuals and society. Here, a connection is made with economic value creation theory, enhanced by sociological dimensions of the recognition and valorisation of education. This enhanced value creation concept shows how continuing education generates values, where these values are recognised, in what contexts they are valorised and what players and discourses are involved. The author also outlines a procedure for value creation analysis and, using two continuing education programmes as examples, illustrates the findings that value creation analysis can generate. On this basis, the author calls for a reorientation of continuing education that transcends the limitations of market logic.

Placing Value Creation at the Core of Strategy

Most strategic management scholars still use Adam Smith’s conceptual framework of value-in-use and value-in-exchange. However, many modern scholars fail to recognize that Smith’s model of wealth creation was based on a normative model that targeted contemporary policy makers, rather than being an attempt to create positive theory of value. This paper represents an historical and cross-disciplinary integration of positive theories of value and value creation. A new typology is proposed which consists of two types of cross section value (hedonic value, and systemic value) and two types of longitudinal value (past value, and potential value). It is argued that these positive theoretical insights should be foundational to strategic management research, rather than the normative framework inherited largely intact from Adam Smith.

Corporate Social Responsibility and Performance Relationships in Advanced and Emerging Countries

The responsibility of business in society in general and whether corporate social responsibility (CSR) pays off, in particular, have generated a lively, ongoing debate. We suggest one solution to the debate by building on the theory of shared value creation. We argue that although CSR supports performance, the effect of the components of CSR (environmental, governance, and social) on performance varies in advanced and emerging countries because each of the CSR components addresses different infrastructure challenges in the context. Specifically, we argue that in advanced economies, environmental CSR has the highest impact on performance, followed by governance CSR, and then social CSR. In contrast, in emerging markets, social CSR has the highest impact on performance, followed by governance CSR, and lastly, environmental CSR. We illustrate the argument by comparing the CSR-performance relations in large advanced (USA, Germany) and emerging economies (China, India).

Stakeholder Models for Value Creation and Allocation

Scholars of strategic management, entrepreneurship, and organization theory have recently sought to integrate theories that emphasize stakeholder interests with those on value creation and capture. In this Symposium, we propose to advance research on this integration through the presentation of scholarly papers by four authors, each of whom will present recent findings developed with co-authors on this topic. The papers will be discussed formally by two leading scholars in this domain. The purpose of the symposium is to support scholarly dialogue among participants, with the discussants, and in a question-and-answer session with attendees. We envision that this dialogue will advance frontier approaches to modeling how stakeholder contributions and claims can be discerned analytically. This advancement will enhance linkages between stakeholder theory and conceptualizations of value creation and of the distribution of value among claimants. Towards A Stakeholder-Oriented Framework on Value Creation and Allocation Presenter: Julien Jourdan; HEC Paris Platform Governance of Social Issues Presenter: Jiao Luo; U. of Minnesota Stakeholder Engagement for Sustainable Development: A Conceptual Model of Orchestration Presenter: Lite Nartey; INSEAD Beyond Primacy: A Stakeholder Theory of Corporate Governance Presenter: Pushpika Vishwanathan; U. of Amsterdam

A Study on Impact of Consolidation on the Profitability of Regional Rural Banks in India

Consolidation in the form of mergers or amalgamation has always seemed to be an option to revive loss-making and inefficient banks or firms. Consolidation supporters argue that minimizing surplus capacity in banking will eliminate the industry of inefficient operating financial institutions. The present study aimed to empirically analyse the effect of amalgamation on the performance of regional rural banks (RRBs) in India. A paired t-test (univariate analysis) has been employed to evaluate pre- and post-amalgamation comparisons of various profitability proxies. The results revealed that return on equity increased significantly in the post-merger period. In the second stage of analysis, panel regression has been employed; the results confirmed the findings of univariate analysis and revealed a significant increase in ROE in the post amalgamation period. Hence, supporting the theories of value creation of mergers and acquisitions (M &As), the present research states that the profitability performance of regional rural banks in India has increased marginally after the M&As exercise.

From mainstream to niche: How value regimes shift in emerging economy upgrading

Efforts of emerging economies to upgrade into global market capabilities are often conceptualized as either discrete choices or ongoing experiments. Mediating between these perspectives, this study uses the concepts of value regime and economic imaginary to examine micro-dynamics in upgrading. Based on the case of global business services in Kenya and South Africa, this study shows that upgrading efforts center around mainstream or niche value regimes which align local resources with specific demands and which are guided by economic imaginaries. These are shared theories of value creation and upgrading success which are linked to global discourses and which legitimize certain local investments while hindering others. Findings show how both Kenya and South Africa initially followed mainstream imaginaries according to which meeting global standards attracts clients and helps achieve scalable success. Misalignments with material realities later promoted niche imaginaries which focus on the value of local specificity and exclusiveness and which promoted the rise of impact sourcing and specialty services. Findings indicate how the interplay of material and discursive processes affects upgrading dynamics.