Value Creation Management Research Articles

Fostering performance management by identifying key performance indicators for human capital in integrated reporting

Human capital is widely recognized as a pivotal factor in driving economic development and ensuring the sustained success of organizations. In efforts to enhance transparency in reporting and elucidate the mechanisms through which organizational value is generated, businesses might turn to the integrated reporting framework, encompassing six key capital dimensions, including human capital. However, a notable gap exists in the standardization of essential performance indicators within this framework. Therefore, the primary aim of this research was to identify the fundamental concepts underlying key performance indicators specific to human capital within integrated reports. These identified indicators not only enhance the usability of integrated reporting frameworks but also resonate with the perspectives of economic theory on human resource management, delving into various facets of employee performance and well-being. Moreover, the study delved into how transformational and benevolent leadership styles can harmonize with both the integrated reporting framework and the suggested key performance indicators of human capital, offering insights into effective organizational management and sustainable value creation.

Value creation across organizational borders: towards a value gap theory

Purpose This study aims to explore and theorize value gaps within value chain management (VCM) by extending the service quality gap model to the context of global manufacturing value chains. Design/methodology/approach Drawing upon a case study of a small, family-owned Swedish furniture wholesaler, Alpha, this research adapts the service quality gap model and integrates it into the VCM framework. The investigation examines the value creation and delivery processes across a network of actors, highlighting how various gaps emerge at different stages of the value chain. Findings The study identifies and describes several value gaps, including those related to consumer understanding, manufacturing capabilities and coordination across the value chain. Value creation gaps arise from poor communication about consumer needs and product features, whereas value delivery gaps are mainly tied to manufacturing capacity and material restrictions. These gaps can result in misalignment between consumer expectations and the delivered value. Research limitations/implications Although this study provides insights into the emergence of value gaps, further research is needed to determine the magnitude and reduction strategies for these gaps. In addition, understanding how consumers evaluate new products remains a critical area for investigation. Practical implications The research highlights the significance of a coordinated approach to managing value creation and delivery processes. It underscores the need for companies to capture accurate consumer data, consider manufacturing capabilities and engage in effective coordination with various actors in the value chain. Social implications By addressing value gaps, companies can enhance consumer satisfaction and minimize potential dissatisfaction caused by misalignment between consumer expectations and delivered value. This, in turn, can lead to improved relationships with consumers and other actors within the value chain. Originality/value This research offers a novel perspective on value gaps in VCM, extending the service quality gap model to the realm of manufacturing. It underscores the importance of managing both value creation and delivery processes for enhancing competitive advantage in a global market.

Value chain management practices and value creation in sub-Saharan African apparel firms

Purpose: This study explores value chain management (VCM) practices in the sub-Saharan African apparel industry, developing a strategic framework to enhance value creation.Design/methodology/approach: A quantitative research design was adopted, surveying 430 managers across the apparel value chain. Data were analysed using factor, correlation, and regression analyses to ascertain the impact of VCM practices on value creation. However, it is essential to notice that the study’s findings are limited to the sub-Saharan African context and may not directly apply to other regions.Findings/results: The analysis revealed a strong correlation between specific VCM practices, such as information sharing, incentive realignment, agile manufacturing, and value creation. These practices help firms to navigate the industry’s complexities and leverage regional opportunities.Practical implications: The study provides a valuable framework for managers, highlighting customer-centricity and strategic sourcing strategies. These strategies are crucial for enhancing operational efficiency and competitive positioning in the global market.Originality/value: The study offers original insights by empirically validating VCM practices and their contribution to value creation within the sub-Saharan apparel sector. The strategic framework fills a gap in the literature and aids the sector’s integration into the global value chain.

Conditions for approaching shared value creation management in the Japanese rice flour-related business: application of mixed methods research

This is the second paper on creating shared value (CSV) management in Japanese rice flour-related businesses conducted by the same authors. In the first study, the relationships among business philosophies, business strategies and business outcomes of rice flour-related corporates in Japan were clarified using structural equation modeling (SEM) and cognitive mapping of questionnaire survey results. The management philosophy, effective altruism, influences business strategies (potential head market, tail market, organizational learning, and proposals from stakeholders) of rice flour-related corporates, inducing innovation and determining current business performance and future prospects for shared value creation. The business performance reflects their expectations for the rice flour market, and influences the direction of market development. In addition, we showed a need for policy innovations that strengthen effective altruism and create shared value through organizational learning of the stakeholders in rice flour-related businesses. Therefore, the purpose of this study was to clarify conditions for approaching CSV management in domestic rice flour-related businesses by applying mixed methods research (MMR). Specifically, a latent class analysis (LCA) was introduced to classify the management characteristics of rice flour-related businesses with survey results, and a qualitative comparative analysis (QCA) conducted on the CSV management entities extracted from the LCA to clarify the necessary and sufficient conditions for achieving CSV management. The results revealed that there are very few rice flour-related businesses in Japan that have approached CSV management, and sufficient conditions for approaching CSV management in rice flour-related businesses are a combination of effective altruism and various management strategies (long tail/organizational learning/innovation/stakeholder proposals). Therefore, we conclude that to achieve a sustainable regional development of rice flour-related businesses, policy innovations that integrate pull-type and push-type strategies are important.

EVALUATING THE INTERPLAY BETWEEN ESG PRACTICES AND CORPORATE FINANCIAL PERFORMANCE IN AMERICA: THE INDUSTRIAL SECTOR

A comprehensive strategy that incorporates social responsibility, environmental stewardship, and economic viability is needed to achieve sustainability in the industrial sector, a sector that is responsible for almost a quarter of all carbon emissions worldwide. Nowadays, business strategy, risk management, and long-term value creation are deemed to be critically dependent on sustainability factors. The present paper targets to examine the relationship between ESG (Environmental, Social, and Governance) and CFP (Corporate Financial Performance) for 100 American-listed companies that operate in the Industrial sector from 2018 to 2022. The data used in this study is collected from Thomson Reuters and analyzed using STATA Software. The research reveals a strong association between CFP and ESG as a combined score. When an in-depth analysis is performed regarding the sustainability pillars with separate consideration, a positive relationship was shown between the social and environmental pillar and the financial performance, whereas a weaker link could be determined regarding the governance pillar. As such, American companies need to carefully review ESG investments to avoid bad financial outcomes and gain long-term performance

Effectiveness of Company Value Creation Based on Excess Market Value-Added Assessment

This article aims to assess the usefulness of excess market value added to equity as an external measure of company value creation from the perspective of meeting shareholder expectations. This measure compares the expected value as an increase in stock exchange capitalisation in relation to return on equity, equivalent to its cost, decreased by this capital, in relation to the actually achieved level of capitalisation. This paper investigates relations with other external and internal measures. This research is based on measuring value creation in WIG30 Warsaw Stock Exchange companies in 2017–2023. The assessment of the research results was based on mathematical statistics tools, the density measure and the taxonomic measure of similarity. The study tested four hypotheses. The results of this research showed that the excess measure does not distort market information and can be used to assess the effectiveness of shareholder value creation, taking into account shareholder expectations. Secondly, the paper pointed to an unsatisfactory level of value creation in WSE WIG30 companies. The negative assessment of value creation management refers both to effectiveness and efficiency. Thirdly, shareholders continue to use classical financial measures despite the existence of a wide spectrum of value measures. Fourthly, the paper points to the lack of theoretical equality between the market value added (an external measure) and capitalised economic value added (an internal measure). The presented research contributes to unbiased assessments of whether or not shareholder value is simultaneously created and realised in increased share prices (capitalisation) to a higher degree than shareholder expectations. Up to now, no such research studies have been conducted for Polish and foreign capital markets. The research methodology has practical applications in expectations-based management.

Digital content and reading encouragement initiatives... A vision towards a knowledge society

Perhaps it is enough to read the importance and destiny and consider it a key to knowledge and the achievement of civilized renaissance, as it is the first divine command that came with the faithful revelation of the illiterate prophet, the last of the prophets and messengers. This is indisputable proof that reading outweighs everything of importance and value in life. Therefore, no two disagree that the decisive factor in the present and future life revolves around knowledge, by which the progress and superiority of nations and societies is measured and their arrangement among the developed and less developed countries of the world, since the early nineties of the last century, and with the increasing spread and development of the use of information and communication technology The governments of all countries are actively seeking to pay attention to information management, knowledge production, and civilizational value creation. Of course, the use or consumption of information and the production of knowledge, and the growing interest in the growing awareness of the role of creativity and innovation by using knowledge to add value, come only through the availability of digital content in a way that guarantees availability and rapid access in order to enhance knowledge and cultural openness and create information awareness among generations. At this juncture, the problematic of this research paper emerges in: The nation of Iqra does not read, as it is one of the least countries in the world in demand for reading, which negatively affects its awareness and awareness of achieving the civilizational renaissance, as the main question on which the axes of the paper are based to answer is: • What is the method or the elements through which it is possible for the Arab countries to be a nation of reading in the full sense of the word, and to be able to achieve the civilizational renaissance and progress towards the knowledge society with merit and competence?

Factors Promoting Value Creation in Lean Management within Public Social and Healthcare Organisation

Factors Promoting Value Creation in Lean Management within Public Social and Healthcare Organisation

Digital tourism research: a bibliometric visualisation review (2002–2023) and research agenda

Purpose This study aims to review the diversified existing literature on digital tourism from 2002 to 2023 using bibliometric analysis to present a holistic review of the current scientific structure of digital tourism and sets the future research agenda. Design/methodology/approach A detailed search of 646 SSCI articles collected from the Web of Science Core Collection (WOSCC) database was analysed through CiteSpace. Findings The findings indicate that developed countries are at the core of the co-authorship network, although developing countries represented by China increasingly contribute valued research findings. The conceptual structure of digital tourism mainly evolves from exploration (2002–2006), and acceleration (2007–2014), to diversification (2015-2023), with the most recent focus on consumer-oriented value creation and potential technological risks. Three well-established thematic groups have been identified, namely, technological innovation and application, destination digital management and consumer value creation. Constructive insights for future research are also offered, including digital scenarios, digital production and digital governance. Practical implications The research helps scholars and practitioners grasp the current issues and needs of digital tourism and provides a guide for policymakers in the tourism industry who seek to intelligently improve tourism performance. Originality/value This study thoroughly evaluates 22 years of digital tourism literature through bibliometric analysis. It creates a framework for understanding how digital tourism is theorised and developed and indicates future research directions.

Value creation management in urban transportation networks based on soft systems methodology

Value creation management in urban transportation networks based on soft systems methodology

Sustainable Development and Value Creation, an Approach from the Perspective of Project Management

The discipline of project management has been maturing over time, integrating positively with some organizational approaches, such as strategy and sustainable development, to meet current needs without risking future capabilities. In this sense, it is observed that measuring the success of a project only from the classic mechanistic perspective of the triple constraint: scope, time, and budget, is insufficient; this opens a space for a new variable of social progress: the creation of value. Thus, the objective of this study is to identify the degree of relationship between the success of the projects and the sustainable development approach, managing to determine through the results obtained some opportunities for improvement in light of the economic and organizational context. As a starting point for this research, a review of the literature associated with topics, such as sustainable development, value creation, and modern trends in project management, was carried out. The second step was to design and apply a structured survey to 148 Colombian companies that develop projects in different sectors, such as technology, infrastructure, and services. With the information collected, a structural equation modeling—SEM model was applied to determine the relationship between the selected variables. Finally, the results of this research showed that the success of a project that is carried out under a sustainable development approach has a positive tendency toward the creation of value. In conclusion, it is found that the four dimensions studied: impact, relevance, effectiveness, and efficiency, allow us to explain to a greater or lesser extent the success of the projects through their approach to sustainable development and value creation.

Stakeholder theory, strategy, and organization: Past, present, and future

We reflect on the past, present, and future of stakeholder theory, focusing on its link to strategy and organization scholarship. Stakeholder theory was originally conceived as a theory of strategic management, but for most of its history it largely developed without having a noticeable impact on strategy research. This has changed in the past decade, however, with the strategy field making a “stakeholder turn.” We highlight the streams of research at the forefront of this turn, including work on “behavioral stakeholder theory,” ‘stakeholder strategy theory,’ and “stakeholder governance.” We conclude with an outlook on how stakeholder theory can help strategy scholars develop a theory of managing value creation that explicitly acknowledges both the economic and moral nature of relationships in and around organizations.

Research on the Influence Factors of the Performance of corporate Mergers and Acquisitions based on the perspective of management innovation

Enterprises will generate mergers and acquisitions to expand their value, which will have far-reaching effects on both parties' current benefits and future development. Moreover, from the perspective of management innovation capability, the study of mergers and acquisitions performance influencing factors is essential for enterprises to improve internal control management and increase value creation. This paper first uses the mixed cross-sectional data of listed companies as the research sample. Then, based on the volatility and conflict perspective of the indicators, we quantified the corporate management innovation capability using information weight, independence weight, and the TOPSIS method. Then, operating cash flow, firm size, and mergers and acquisitions size were used as control variables to investigate the effect of management innovation capability on corporate mergers and acquisitions performance using a robust linear regression model, and a robustness test was conducted. The empirical results show that management innovation capability has a significant positive relationship with mergers and acquisitions performance, which confirms that management innovation capability is a requirement for firms to create practical value. Finally, this paper puts forward relevant suggestions for enterprises to achieve high-quality development and improve mergers and acquisitions performance.

Effects of governmental data governance on urban fire risk: A city-wide analysis in China

The effects of data governance (as a means to maximize big data value creation in fire risk management) performance on fire risk was analyzed based on multi-source statistical data of 105 cities in China from 2016 to 2018. Specifically, data governance was first quantified with ten detailed indicators, which were then selected for explaining urban fire risk through correlation analysis. Next, the sample cities were clustered in terms of major socio-economic characteristics, and then the effects of data governance were examined by constructing multivariate regression models for each city cluster with ordinary least squares (OLS). The results showed that the constructed regression models produced good interpretation of fire risk in different types of cities, with coefficient of determination (R2) in each model exceeding 0.65. Among the indicators, the development of infrastructures (e.g. data collection devices and data analysis platforms), the level of data use, and the updating of fire risk related data were proved to produce significant effects on the reduction of fire frequency and fire consequence. Moreover, the organizational maturity of data governance was proved to be helpful in reducing fire frequency. For the cities with large population, the cross-department sharing of high-value data was found to be another important determinant of urban fire frequency. In comparison with existing statistical models which interpreted fire risk with general social factors (with the highest R2 = 0.60), these new regression models presented a better statistical performance (with the average R2 = 0.72). These findings are expected to provide decision support for the local governments of China and other jurisdictions to facilitate big data projects in improving fire risk management.

OPPORTUNITIES FOR COMPETITIVE ADVANTAGE IN THE VALUE, CREATED BY PRIMARY HEALTH CARE INSTITUTIONS IN LITHUANIA: DOES COMPETITIVENESS POSSIBLY DEPENDENT ON THE FORM OF OWNERSHIP?

Background. In the face of competition between primary health care institutions (PHCIs), attempts are made to gain a competitive advantage in the market by creating greater value for patients. Little research has been conducted on whether the form of a PHCI’s ownership is a factor of its competitive advantage. The aim of the study. To determine opportunities for competitive advantage in the management of value creation in public and private primary health care institutions by using the method of focus group discussion with managers. Methods. Focus group discussions were held in 10 Lithuanian counties, and 10 focus group sessions were carried out overall. A total of 48 primary health care managers were interviewed. Results. The competitive advantage of a PHCI depends on its form of ownership, which makes for unfair competitive conditions. A competitive advantage is created by factors such as: the variety of services available; the health care policy in action; the function of the manager; the professionalism of the staff; and the location of the institution. Medical staff have the same opportunities to express and develop their professional skills in public and private PHCIs, but private institutions attract the most skilled staff because they have the resources to increase their motivation. Conclusions. The managers of PHCIs indicated that the competitive advantage depends on the form of ownership. In management science this study and the results can be a basis for the health care reform development and the foundation for new theories.

Working capital management and shareholders' value creation in the emerging Asian market: the evidence from Indian manufacturing sector

Working capital management and shareholders' value creation in the emerging Asian market: the evidence from Indian manufacturing sector

Working capital management and shareholders' value creation in the emerging Asian market: the evidence from Indian manufacturing sector

Working capital management and shareholders' value creation in the emerging Asian market: the evidence from Indian manufacturing sector

Environmental Management Accounting System and Value Creation: An institutional perspective

The emergence of environmental issues has increased environmental protection awareness among society and pushed organizations to become environmentally responsible. Many companies currently consolidate environmental matters into their corporate strategic plan by adopting a comprehensive Environmental Management Accounting System (EMAS) to create more value. However, a lack of understanding on the institutional pressures persuading EMAS adoption within the organizations has reduced the urgency for the company to adopt the EMAS. This paper aims to explain the management's behavioral issues towards accepting EMAS adoption and how this behavior would lead to value creation. Keywords: Environmental Management Accounting System (EMAS), behavioral barriers, value creation, institutional theory eISSN: 2398-4287© 2021. The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians/Africans/Arabians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia. DOI: https://doi.org/10.21834/ebpj.v6i17.2866

Civil society organisations’ management dynamics and social value creation in the post-conflict volatile contexts pre and during COVID-19

Purpose The current paper aims to address the management dynamics of civil society organisations (CSOs) in volatile contexts. Along with analysing CSOs’ management dynamics at a general level, it also offers specific insights into their management strategies in response to COVID-19 pandemic. Design/methodology/approach This study uses a qualitative research design, where in-depth case studies are undertaken with four CSOs operating in post-conflict volatile Sub-Saharan African economies of Liberia and Sierra Leone. Findings Findings revealed that multiple stakeholder management plays an important role in social value creation by CSOs. The findings further state that, in volatile contexts, CSOs appear to have more legitimacy than state functionaries due to their capabilities in dealing with political pressures and conflict sensitivities. The findings also revealed that case CSOs operating in Liberia and Sierra Leone were quick to respond to the COVID-19 pandemic by adjusting their working routines accordingly by switching to online working where possible and repurposing their management strategies. This repurposing of management strategies focussed on minimising economic disruptions caused by COVID-19 and continuing to create social value by helping youth and farmers particularly. Originality/value This paper contributes to the extant literature by being one of the first studies, highlighting the specificities of CSO management in volatile (especially Sub-Saharan African post-conflict) contexts and contributes to the literature streams on multiple stakeholder management and social value creation. To the best of the authors’ knowledge, the current paper is also one the first study to address the management strategies of case CSOs in response to the ongoing Covid-19 pandemic in Liberia and Sierra Leone.

Discussion on Industrial Internet Platform Construction Based on Power Internet of Things

At present, the development of industrial Internet platform is in a period of large-scale expansion. Since 2017, China has issued a series of documents, such as the Guidance on Deepening “Internet + Advanced Manufacturing” to Develop Industrial Internet, the Action Plan for Industrial Internet Development (2018-2020), and the Industrial Internet App Cultivation Project (2018-2020), which constantly points out the direction for the development of the industrial Internet industry. The power Internet of Things connects the equipment, customers and data in all links of energy production, transmission and consumption in real time, fully bearing the production and operation of power grid, enterprise management and new business development, etc. It has the characteristics of ubiquitous terminal access, open platform sharing, computing cloud collaboration, convenient and flexible application, etc. This paper aims to discuss how the power Internet of Things can help the construction of the industrial Internet, provide strong data resource support and service for the safe and economic operation of the power grid, improve business performance, improve service quality, cultivate and develop strategic emerging industries, and open up a new road for management innovation, business innovation and value creation.