Enterprise Value Creation Research Articles

Understanding R&D value creation with organizational simulation

Research and development functions are fundamental drivers of value creation in technology-based enterprises. Successful R&D is a function of invention and R&D management. This paper studies R&D ma...

Ethical Customer Value Creation: Drivers and Barriers

There is a long-standing discussion on the positive interactions between enterprise value creation and business competitiveness. The corporate value can be seen as being created from three major sources within the cycle – from employees, from processes, and from customers or investors through reinvestment. To achieve competitive advantages, a firm must create more value than its competitors in the industry. Emphasizing that, firms should explore the positive drivers of customer value creation, allowing for a true value creation that will lead to increments in competitiveness. In reality, however, there are also barriers that hinder customer value creation. Targeting the above issues that have not yet been explored or analyzed, we have collected related literature at the first stage. Based on these presumable assumptions, this paper then conducts an empirical study by surveying and analyzing the relevance given by the investigated leading machinery measuring equipment firms in Taiwan, regarding the concerns as drivers and barriers in relation to customer value creation. This paper especially aims to answer several key questions: What drivers revolving around employees and processes can facilitate the organization to create more value for its customers? Conversely, what barriers block the organization from creating value for customers in examining the same dimensions? Does value creation direct an organization’s profitability and competitiveness? Our questionnaire survey results show that the most recognized and agreed drivers of customer value creation in consideration of employees are “distinctive skills”, “personal experience”, “learning and training”, and “team work”; and, in regard to the firm’s processes, the key drivers are “innovation and evolution”, “RD and, in terms of processes, they are “short of core technology”, “poor resource support”, and “bad services and attitudes”. Furthermore, our in-depth interview outcomes reveal that “capital sufficiency” and “mergers and acquisitions” are in practice considered to be other important customer value creation drivers; in contrast, “cultural and structural barriers” and “short of mechanisms to measure customer value creation effectively” are viewed as additional critical barriers to customer value creation.

A Systems Dynamics Study of Enterprise Value Creation – the Example of Taiwan’s SMEs

With the globalization of economy, industries are facing increasingly greater challenges. Business integration, both internally and externally, is undoubtedly an important topic. However, how does an enterprise create its own value will be the key to an enterprise’s success in the future. Therefore, this study bases on the evaluation of company value to assess the key factors and competitive strategies of an enterprise. Yet, only with stable enterprise performance can the company value be correctly evaluated. This will be an important issue for enterprise performance and business strategy. Subject of this study are mainly small and medium‐sized enterprises (SMEs). Model construction for SME value assessment is established through the sytem dynamics approach. Scholars’ opinions on literature validation and application of Delphi Method are explored through literature review on local and foreign studies, in order to compile the relevant perspectives and indices for enterprise value creation. Hence model construction of the value creation system is established, and the correlation between the perspectives and related factors is explored to understand the overall dynamics model of SMEs’ value creation system. Consequently, a research method based on the system dynamics perspective is provided for the study of enterprise value creation is provided, as policy reference for improvement of decision‐making and value creation.

The nature and role of IC

Current formulations of the concept of intellectual capital (IC) are seen as flawed. They equate IC with intangible assets and intellectual property, or, with knowledge management (KM) activities. They also do not explain its genesis and development. IC is here conceptualised as the holistic and superordinate capability of an enterprise to create value through a creative orchestration of its knowledge resources, under conditions of constant change. It is the result of the dense dynamic nexus of a firm's social capital (SC), human capital (HC), and KM. It is manifested in the form of a firm's sustained profitable growth. It, thus, also represents a firm's overarching capability to meet challenges and exploit opportunities in its continual efforts to generate wealth. The essence of the concept is seen to lie in Ashby's Law of Requisite Variety. Requirements for its development toward sustained value creation and growth of enterprises are outlined briefly.