Value Drivers Research Articles

The relative importance of severity and rarity criteria in health resource allocation: an umbrella review.

The primary objectives of this umbrella review were to (a) quantify the relative importance, of "severity" and "rarity" criteria in health resource allocation; and (b) analyze the contextual factors influencing the relative importance. The secondary objective was to examine how "severity" and "rarity" criteria are defined. Searches were carried out in PubMed and Embase to identify eligible systematic reviews. Quality appraisal of systematic reviews was undertaken. From identified systematic reviews, primary studies were extracted and further screened for eligibility. The inclusion of severity and rarity criteria and their respective weights in primary studies were examined. Descriptive and regression analyses were performed. Twenty-nine systematic reviews were screened, of which nine met the inclusion criteria. Primary studies included in these systematic reviews were retrieved and screened, resulting in forty articles included in the final analysis. Disease severity was more frequently considered (n=29/40) than disease rarity (n=23/40) as an evaluation criterion. Out of all cases where both were included as evaluation criteria, disease severity was assigned higher weights 84 percent of the time (n=21/25). Our review found consistent evidence that disease severity is more relevant and preferred to rarity as a priority-setting criterion albeit constraints in statistical analysis imposed by limited sample size and data availability. Where funding for rare diseases is concerned, we advocate that decision-makers be explicit in clarifying the significance of disease severity and/or rarity as a value driver behind decisions. Our findings also reinforce the relevance of disease severity as a criterion in priority setting.

Abnormal Stock Market Returns to Business Model Extension Announcements: Value Drivers & Moderators

The value-creation potential of business model extensions (BME) in incumbent companies remains a subject of ongoing debate and is currently not substantiated by market-value focused empirical research. Especially the moderating role of economic uncertainty and the interplay with traditional product-industry diversification have not been empirically examined. This study aims to close that gap. We utilize an event study setup to measure the value-creating effect of BME and its moderators. Using a unique dataset of joint ventures in the high-tech industry industry, we measure the effects of BME and its moderators on abnormal stock market returns. Our findings indicate that BME leads to higher abnormal stock market returns. This effect is further amplified under company-level, industry-level, and macroeconomic uncertainty. Additionally, we discover that, under these uncertainties, combinations of BME and product-industry diversification are value-creating, whereas product-industry diversification alone tends to be value-destroying.

Investigating Ecosystem Service Trade-Offs and Synergies: The Need for Correlations and Driving Factors in the Upper Fen River Basin of Shanxi Province, China

This research provides an overview of the trade-offs and synergies among ecosystem services (ESs) within the upper Fen River Basin (uFRB) that are crucial for informed land management and regional ecological protection. We utilized methodologies, including the dynamic equivalent factor method and spatial autocorrelation analysis, to track ES and driving factors from 1990 to 2020. This study revealed a 13.27% increase in overall ES value, with notable growth in forest land and water areas. Initially, synergies were dominant, but trade-offs became evident over time, particularly with food production. This study identified road proximity and the Normalized Difference Vegetation Index (NDVI) as primary drivers of ES values, with their impact evolving annually. The analysis also highlighted the importance of considering the temporal dynamics in ES relationships and the influence of driving factors on these services. We propose incorporating socio-ecological factors and ES bundles into spatial planning. This is crucial as it will allow us to optimize multi-ES objectives, thus balancing trade-offs and enhancing synergies for sustainable land use.

Assessing the value and risk of renewable PPAs

Renewable Energy Power Purchase Agreements (RE PPAs) are considered to be a key tool in order to foster RE deployment, as they allow for the reduction of uncertainty for all parties as well as facilitating access to the long term finance required for such projects. Nevertheless, RE PPA adoption is hampered by a number of barriers, including the high level of guarantees demanded from offtakers, a problem which is related to the shortcomings of existing assessment methodologies, in particular, determining the credit risk of the PPA itself. In this work, we propose an RE PPA assessment model focused on the main drivers of value and risk for the offtaker which are cost and volatility reductions, compared to the electricity market. By identifying and valuing the options for the offtaker embedded in the PPA, it is possible to determine the default probability at any given time and the expected loss for the producer, thus allowing for the estimation of the amount of guarantees needed to hedge the credit risk.

Beyond functionality: topographical complexity as a driver of aesthetic value in urban green infrastructure

Cities face growing challenges from stormwater: flooding, pollution, and habitat loss. Green infrastructure offers solutions, yet the aesthetic dimension is often overlooked. This study introduces the Buras Beauty Scale for objectively assessing the beauty of wetland configurations and emphasises its integration into green infrastructure projects. Our methodology involved surveying diverse groups, including non-architecture students and non-traditional architects, who perceived higher beauty in wetland configurations compared to traditional architects and architecture students (mean beauty scores: 7.8 and 7.5 vs. 6.2 and 6.4, respectively). Statistical analysis revealed a strong correlation (r = 0.731, p < 0.05) between beauty assessments and Shannon-Weaver entropy, highlighting the importance of topographic diversity. We also observed that higher beauty scores correlated with greater consensus among respondents, as evidenced by a decrease in the coefficient of variation from 0.52 to 0.34. Multicriteria analyses, integrating beauty with functionality, identified optimal wetland configurations for urban landscapes.

Assessing the Ecological Value: Monetizing Process Innovations in Tailored Forming

Companies must innovate to survive in competitive markets. The pressure to bring innovations to market faster and meet market and regulatory requirements challenges companies to assess early on whether an innovation delivers economic value added (EVA), even with a lack of quantification data. Sustainability, now a crucial industrial pillar, is integrated into this article's semiquantitative method for monetarily evaluating sustainable value drivers of innovations. The method is applied to the “Tailored Forming” innovation, developed in Collaborative Research Center 1153. The procedure employs an EVA driver tree to guarantee a net present value orientation within the innovation evaluation. A systematic literature review further systematizes the driver tree, thereby establishing a link between the sustainable value drivers of the EVA to develop a literature‐based impact model. A weighted scoring model (WSM) compensates for limited data, with interviews from CRC 1153 providing additional input. The data evaluation demonstrates that implementing Tailored Forming technology does not currently represent an effective strategy for achieving a higher EVA from a sustainability perspective, as evidenced by an increase in the WSM value. However, levers are being identified to facilitate the transfer of the Tailored Forming innovation into practice, reducing the WSM and positively influencing the EVA.

Market Valuation of Risk Reporting: The Role of Business Model Disclosure

Narrative risk reporting is essential to providing investors with information about company risks. Recent regulations require large companies to disclose narrative information about their main risks, opportunities, and business model (BM) value drivers. While only minimum disclosure requirements are defined, principle‐based guidelines have suggested that companies contextualize risk disclosure by linking it to BM information. Hence, this study investigates the level of integration of BM reporting and risk reporting, and the consequences of such an integration on market values. This research analyzes the annual reports of a sample of UK‐listed companies over four years. Risk disclosure indexes are developed to capture the quality and integration of risk information, and value‐relevance analyses are carried out to investigate the impact of risk reporting on market values. The analyses indicate that narrative risk information is value relevant only when integrated with BM reporting. Additional analyses show that risk information is associated with reduced information asymmetry but only when disclosed risk factors are related to BM information. Hence, BM disclosure can serve as a filter to identify and interpret the most relevant company's risks. The results are valuable to various stakeholders, including academics, standard setters, and professional bodies. The study's policy implications suggest the need to develop guidelines clarifying the definitions of BM and risk and ways to integrate the narrative information, in light of recent regulatory developments in the EU.

The Influence of Leverage, Profitability, Liquidity and Tax Planning on Company Value in Consumption Goods Industry Sector Companies on the Indonesian Stock Exchange

This study aims to examine and analyze the effect of leverage, profitability, liquidity, and tax planning on company value in consumer goods industry sector companies listed on the Indonesia Stock Exchange (IDX) from 2019 to 2021. It is a quantitative study using panel data analysis, employing methods such as the Chow test, Hausman test, Lagrange multiplier test, classical assumption tests, and hypothesis testing through Eviews 12 software. The study population includes companies in the consumer goods sector registered on the IDX between 2019 and 2021. A purposive sampling method was applied, resulting in 28 companies and a total of 84 observations. The data utilized are secondary and obtained from the official IDX website (www.idx.co.id) and company websites. The findings demonstrate that profitability has a positive and significant effect on firm value, indicating that more profitable companies tend to increase their market value. In contrast, leverage, liquidity, and tax planning do not show significant effects on firm value. However, when considered simultaneously, leverage, profitability, liquidity, and tax planning collectively influence firm value. These results underscore the importance of profitability as a key driver of firm value in the consumer goods industry, suggesting that companies should prioritize strategies to enhance profitability to improve market valuation. The study’s findings have implications for financial managers, investors, and policymakers, as they highlight the limited role of leverage, liquidity, and tax planning in directly influencing firm value, prompting a reevaluation of how these variables are considered in strategic financial decision-making.

A knowledge creation framework for academia toward agroecological transformations of food systems

Industrialized agriculture, characterized by high inputs, large-scale monocultures, and confined livestock production, with a narrow focus on profit, is a major transgressor of societal and planetary boundaries. It fuels climate change, biodiversity loss, water and soil degradation, nutritional deficiencies, public health issues, cultural erosion, and socioeconomic inequalities. As early-career researchers in agricultural sciences, we are concerned about these systemic crises and recognize that participating in normative academic practices without reflection may reinforce the prevailing industrialized food system. Motivated by the dissonance between the potential impact of our work and our vision of a better future, in this paper we describe and challenge academic praxis in agricultural sciences to tackle the interconnected crises. We do this by developing a framework of two drivers of academic knowledge production, power and values, and two mechanisms, motives and relationality. We argue that in the current dominant food system, power is consolidated and hierarchical, driven by the values of growthism and reductionism, motivated by efficiency and productivism, and characterized by extractive and anthropocentric relationality. Furthermore, we highlight evidence of the negative outcomes associated with this system, including the challenges we face and may potentially contribute to as participants. We then envision transformed food systems through examples of counter-hegemonic knowledge production systems, grounded in agroecological principles, in which power is distributed and horizontal, the primary values are solidarity and holism, motives enhance sufficiency and sovereignty, and relationality is reciprocal and based on care. By examining the current system and offering examples of alternatives, we aim to help distinguish between research that upholds the statu-quo and research that fosters change. We aim to inspire ourselves and others to reconnect with our agency and contribute towards transformed knowledge systems where food systems, underpinned by the values of agroecology, are more capable of sustaining life on this planet in an equitable and just manner.

Assessing the accuracy of directional forecasts

ABSTRACT Directional predictions are used in a variety of settings, including economics, finance, meteorology and medicine. Since the objectives in each setting can be quite different, appropriate tests for assessing the predictions are necessary. After summarizing existing tests, we propose new tests to assess the accuracy for cases where getting extreme events wrong is particularly costly and where there is serial dependence in small samples. We show in simulations that the latter test has a more favourable power-size trade-off relative to existing tests. The new tests are then applied to the directional EUR/USD forecasts in the ifo-Institute’s World Economic Survey and to the point forecasts in the Philadelphia Fed’s Survey of Professional Forecasters. For the former, the new tests show that while there is profitability and predictive accuracy in some cases, a simple time-series model is not beaten. For the latter, extreme values are not the main driver of the predictive value up to two quarters ahead. This shows that the additional tests allow a more precise determination of predictive accuracy and economic value and where it is coming from.

Firms’ use of predictive artificial intelligence for economic value creation and appropriation

Firms are increasingly investing in the use of artificial intelligence (AI). Some succeed in creating and appropriating substantial economic value, but many fail. There is no consensus as to how a firm should use AI to create and appropriate economic value. This paper provides an answer to that question. A novel research model is advanced based on the notion of data network effects being realized within a firm’s business model. This research model is tested in a unique and natural industrial setting of two competing firms that simultaneously adopt the use of similar predictive AI. This setting is researched with two distinct empirical studies that employ mixed-methods research. The results shows that one firm fails to convert its AI use into economic value creation and appropriation while the other succeeds. Value is created and appropriated by ensuring that AI users perceive high user value that realize data network effects while being located in the firm’s business model architecture so as to activate business value drivers. These findings confirm the here proposed research model and offer novel theoretical contributions and specific managerial implications.

Research, patents, and IPO valuation under the Sarbanes‐Oxley Act of 2002

Research and development (R&amp;D) investments and patents influence initial public offering (IPO) valuations. After Sarbanes‐Oxley (SOX) legislation was enacted in 2002, there was a shift from a display of ‘Effort’ to ‘Results’. SOX legislation made fundamental changes to corporate accounting practices and the process of going public. We investigated how the IPO market responded to SOX legislation. Compliance with SOX was disproportionately costly for small, research‐intensive firms. Using Signaling Theory, we focused on whether the existence of patents became a valuable signal for the effectiveness of research and development expenditures (R&amp;D). Our findings indicated decreased importance of R&amp;D expenditures (signaling ‘effort’ to innovate). We also found increased importance of patents (intermediate ‘results’ of R&amp;D efforts) post‐ relative to pre‐SOX. We concluded that patent activity at least partially replaced and moderated R&amp;D in its role as a value driver of IPOs in the post‐SOX environment.

Business Model of Insurance Technology Company in Indonesia (Case Study on Premiro.com)

The rapid increase in internet usage in Indonesia has fueled the rise of Insurtech, addressing low literacy, inclusion, and insurance penetration levels. Insurtech companies are pivotal in offering digital-based insurance services to increase insurance users. This research examines the business models employed by Indonesian Insurtech firms, focusing on a case study of Premiro.com. The study also aims to identify the strengths that provide these companies with competitive advantages. Utilizing a descriptive research methodology and a qualitative approach, the research includes interviews and secondary data collection through literature reviews and company information. The analysis employs the Business Model Canvas and Value Design Model frameworks. The study details Premiro's business model elements: customer segments, value proposition, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. It also examines value drivers, nodes, exchanges, and extracts. Findings reveal Premiro's strength lies in its lean and efficient cost structure. The study offers practical recommendations for Premiro to enhance operational effectiveness, expand market share, and boost competitiveness.

Using Focus Groups to Evaluate a Self-Assessment Approach to Coproduction Value Creation in an International Community of Practice: Phase 2 of the CO-VALUE Study.

Coproduction learning health system models clearly define the use of clinical and patient-reported data for system learning and quality improvement, but less is known about how to document formative learning about coproduction value creation over the course of a quality improvement initiative. The authors aimed to 1) assess the feasibility, utility, and acceptability of novel self-assessment tools for coproduction value creation and 2) identify domains of coproduction value creation. The authors conducted 4 focus groups with quality improvement teams from 4 health systems in the United States and Sweden between June 2021 and September 2023. A single analyst coded transcripts and proposed themes, with investigator triangulation validating results. Participants found the self-assessment tools acceptable and useful. The improvement passport was seen as more feasible for routine use than the full self-assessment guide. Peer learning within the community of practice, diverse multidisciplinary improvement teams, and leadership support facilitated teams' work. Domains of coproduction value creation included communication, self-efficacy, interconnectedness, direct and indirect costs of health care utilization, health professional experience, and access to the right care. Peer learning and camaraderie within the community of practice maintained momentum among participating teams during a challenging time of limited resources and mounting responsibilities in health care settings, suggesting enhanced resiliency through approaching difficult tasks in community. The authors identified themes of coproduction value creation and drivers of engagement. Future research will draw on the measurement domains established in this study to inform the development of measures of coproduction value creation. Those measures could then be incorporated into the data-rich environments of coproduction learning health systems to enhance focus on value from service user and professional perspectives.

Understanding Residential Land Value Drivers in Amman: Insights from Appraisers

Understanding Residential Land Value Drivers in Amman: Insights from Appraisers

Educational heterogeneity of the founding team of innovative start-ups: confirmations and denials

This paper focuses on the value drivers of innovative start-ups (ISUs). Few companies can overcome the start-up stage; often, the early performance is insufficient, and the potential contribution of innovation to economic development is very poor. Studies based on a firm-level perspective show mixed results on the factors affecting the growth of ISUs. Most studies emphasize the role of “external” drivers of ISUs growth, while more knowledge is required of “internal” drivers. Consequently, this research focuses on the relationship between the features of the founding teams and the early performance of ISUs. Specifically, it concentrates on education heterogeneity and analyzes whether the heterogeneity of the founding team in terms of educational level (vertical heterogeneity) and field of studies (horizontal heterogeneity) affects the Italian ISUs performance. Growth regression and unconditional quantile regression models confirm the prior literature: the educational level affects the performance and the vertical heterogeneity in the composition of the founding team is relevant for ISUs performance. However, the results also suggest interesting denials: horizontal heterogeneity does not play any role, and no moderating effect of heterogeneity is shown. These findings are strongly attractive for new ventures and policymakers.

A Bibliometric Analysis: The Influence of Service Profit Chain (SPC) on the Hospitality Industry

In the hospitality industry, the service-profit chain establishes relationships between profitability, customer loyalty, employee satisfaction, loyalty, and productivity. It shows that focusing on employee engagement and customer satisfaction might boost a company's financial performance. This relates to how well the company supports and assists its employees. Several studies have empirically investigated the relationship between practices in the service profit chain and their impact on the tourism and hospitality industries. The service profit chain is based on the premise that market leadership requires an emphasis on managing value drivers that are the most important determinants of success: employee retention, employee satisfaction, and employee productivity, which have the greatest impact on success and provide the most benefit to customers. Bibliometric studies that organize production in this field, however, are still scarce. The study's goal is to analyze the influence of service profit chain practices in hospitality industry using VOSviewer software that is related to marketing. This will be achieved by analyzing articles published on the SCOPUS platform to determine state-of-the-art trends and other relevant indicators. Researcher obtained a sample of 57 materials for analysis. The author processed the data and used the VOSviewer software to graphically illustrate the results. The study examines country-wise productivity, most productive source titles, most-cited sources on the topic, top-most keyword occurrences, and yearly productivity research output trends in this area. The study findings indicate that the United States, China, Australia, Germany, India, Egypt, Malaysia, and Brazil are the most productive countries in the field of research output on the topic. The investigation also reveals that the top-most source title on the topic is “International Journal of Contemporary Hospitality Management,” and frequently used keywords are "articles,” “customer satisfaction,” and “service profit chain." On this topic, the USA is the leading country. However, research on the service profit chain and hospitality in Asia has shown that South Korea and China are the most successful countries in this field. Only the SCOPUS database contains the study's findings. The study's findings are useful for academicians, researchers, and policymakers looking for answers to the topic.

Characterizing social conflict over wolf reintroduction in Colorado: A theoretical model of intergroup conflict

Abstract Context: Wolf restoration is a highly divisive issue in the American West, with stakeholder conflict driven by value and identity‐based disagreements. Research suggests that such conflicts require reconciliation to repair intergroup relations before negotiations to address the issue can begin, yet, in the conservation and natural resource management fields, stakeholder processes about divisive issues typically focus only on negotiations. There is a gap in the literature on how to identify and target the drivers of value and identity‐based conflicts. Approach: We interviewed stakeholders highly engaged in the issue of proposed wolf reintroduction in Colorado to gain insight on the drivers of the conflict and to inform reconciliation interventions. We pulled from conflict and peace‐building theories to frame our analysis, specifically suggestions that conflict is fueled by four categories of perceptions, including perceptions of: the group one is in conflict with, one's own social group, the relationship between groups, and the nature of the conflict. Key Findings: We found that all interviewees discussed perceptions that can fuel conflict within each of these four categories. However, interviewees who identified as 3rd parties to the conflict primarily discussed the relationships between those in conflict and engaged in thoughtful perspective‐taking, an activity that can help reduce conflict. Conversely, both those strongly in support of reintroduction and strongly opposed to reintroduction most commonly described negative perceptions about individuals they are in conflict with and positive perceptions about themselves and their social group. For example, when discussing others, both groups described each other as acting in unjust and unfair ways, as being incapable of or unwilling to change, and as misinformed. When describing positive perceptions of themselves, both those in support and those in opposition viewed their own goals as just and themselves as victims of outgroup members’ actions. Synthesis and applications: Based on our findings, we suggest various reconciliation interventions that may assist wildlife managers in reducing the conflict about wolf reintroduction in Colorado. These recommendations may also be applicable to wildlife managers working on other issues with high stakeholder conflict. Read the free Plain Language Summary for this article on the Journal blog.

When is blockchain worth it? Value and risk drivers of corporate blockchain announcements

In the era of emerging technologies, many firms explore the role of blockchain technology and its impact on corporate market value. Past research has shown that companies benefit from executing blockchain projects, but little is known about specific value and risk drivers. Hence, we provide evidence for several conditions under which blockchain provides additional firm market value. Moreover, we test whether blockchain announcements lead to changes in the systematic risk of firms. Theoretically founded on the resource-based view, we utilize the event study methodology, supplemented by a multivariate regression and a firm’s beta analysis. We find that stock markets react positively to corporate blockchain news if the announcement is related to a blockchain consortium or partnership, is declared by a tech company, or if the announcement is a follow-up announcement to initial blockchain news. Moreover, our findings show that blockchain announcements do not lead to significant changes in a firm’s systematic risk.

EMPIRICAL ANALYSIS OF FIRMS' VALUE CREATION IN THE CONTEXT OF CRISES

In today's highly competitive world, one of the most important business objectives for owners is to generate shareholder value and wealth. In order for an investor to know how to effectively deliver wealth growth, it is important to know the value creators of the business. A number of studies have been published in the management literature to identify the value creators of ownership. This article draws an essence from the literature reviewed, which are identified as key drivers of value creation, which are presented in the first half of the study. In the second logical part of the paper, the characteristics, causes and major crisis episodes of the 2007-2008 global financial crisis and the COVID-19 crisis are presented. In the methodological part, the panel regression model is used to analyse the 702 firms in the database. The main objective of the study is to answer the following questions: which are the most important value drivers and