Value Drivers Research Articles

How the European union deals with surrogacy. Birth without borders as a driver of value conflicts?

Surrogacy has appeared in the European Union (EU)’s agenda since the early 2010s following the rulings of the Court of Justice of the European Union (CJEU), the advisory opinions of the European Court of Human Rights (ECtHR), and the rejection of this practice by the European Parliament (EP). This is part of a broader evolution imposing surrogacy as a transnational issue setting major ethical challenges. Against this background, our research question is two-fold. First, is the EU likely to develop a full-fledged regulatory framework on surrogacy? Second, is surrogacy a bone of contention that fosters morality politics at the EU level? Morality politics is here defined as a political style characterized by two features: a dynamics of politicization leading to uncompromising value conflicts; the primacy of “first principles”, frequently with a religious dimension, over interests. Our findings suggest that surrogacy does not fully develop into an EU policy area. This is largely explained by the resistance of European institutions to engage in a morality politics-like debate. In other words, this is precisely the controversial dimension of surrogacy and the impossibility to deal with it in the usual EU policy style based on compromise and avoidance of value clashes that prevent any EU regulation.

Generational categories: A broken basis for human resource management research and practice

AbstractThis provocation challenges the use of generational categories as a valid and useful basis for the development of human resource management (HRM) research and practice. We present two provocations. First, that a focus solely on year of birth as a driver of attitudes, values and behaviours is wholly inadequate. Second, we go beyond existing empirical challenges to argue that any approach to the study of generations that focuses solely on generational categories should be abandoned. We consider the theoretical basis for generations, together with specific examples from empirical studies to show how the current reliance on largely unsubstantiated categories leaves even longitudinal studies unable to make an effective contribution to this field. We draw on cross‐disciplinary insights to consider the implications for academic research and for HRM practice, showing how the current approach limits the usefulness of findings and suggesting a potential way forward.

Economic Value Drivers for Brazilian Agricultural Cooperatives

This article aims to identify the economic value drivers for Brazilian agricultural cooperatives. To this end, we analyzed the potential value drivers for agricultural cooperatives in Paraná and Rio Grande do Sul using panel data regression, considering data from 2008 to 2016. The results showed that net margin, basic purchasing power, investment in fixed assets, circulating assets X sales margin, fixed asset turnover, net revenue, and number of members are the economic value drivers for Brazilian agricultural cooperatives. Moreover, a dynamic panel based on generalized method of moments (GMM) was used to check the robustness of the relationships. With these results, managers and members of agricultural cooperatives can focus their efforts and decisions on maximizing economic value for associated farmers.

Exploring the effect of community institutional forces on corporate philanthropy in professional sport

ABSTRACT Research question Although a growing body of literature has explored the strategic value and organizational drivers of corporate philanthropy (CP) by professional sport teams, we know less about the influence of geographic community which may constrain or enable the philanthropic behavior of teams. The purpose of this study is to explore how community institutional forces affect the level of philanthropic giving by professional sport teams in the U.S. across four major leagues. Research methods We hypothesized that team philanthropic giving will be greater when teams are in communities which value or promote philanthropic behaviors. To test this idea, we used longitudinal data of philanthropic giving of professional sport team foundations and factors in teams’ community institutional environments between 2005 and 2015 (n = 921). Results and Findings The results revealed that higher state income tax rates and a greater presence of nonprofit organizations in the community increased the level of team philanthropic giving, whereas the effect of community volunteer rates on team philanthropic giving was not found to be significant. Implications Our study advances sport management research by adding knowledge of how professional sport teams are anchored in the institutional and social structures of community. The findings provide practical implications to inform sport teams to be attuned to signals from the community to make the most significant social impact. Furthermore, policymakers might leverage different community institutional forces to exert pressure on teams to engage in appropriate levels of CP to achieve desired collaborative social objectives.

Modelling wood property variation among Tasmanian Eucalyptus nitens plantations

Characterisation of forest resources is increasingly focused on tree wood properties as they are important drivers of economic value. We used the Random Forests machine learning algorithm to model variability among plantations of Eucalyptus nitens in key wood properties affecting the value of solid-wood products. Using breast-height disk samples from 46 even-aged stands of different ages across the island of Tasmania, Australia, we modelled site variation in SilviScan-3TM derived estimates of wood density, microfibril angle and modulus of elasticity. Regional-scale models were developed with respect to plantation age, environmental and climatic variables. Wood density and MOE increased, and MFA decreased with age. Wood density and MOE decreased and MFA increased with elevation. Increasing elevation is associated with increasing annual precipitation and decreasing temperature, but the variation in wood properties was mainly associated with precipitation. Wood density decreased and MFA increased with annual precipitation. MOE was positively related to wood density and negatively related to MFA, thus as expected, increased with annual precipitation. Using the Random Forests climate models we demonstrate the potential for predicting and mapping wood properties relevant for solid wood products at a scale that is relevant to strategic planning by the forest industry. Such models allow quantification of the impact of different growing conditions on the wood properties of harvested logs and therefore on wood products. When coupled with genetic, growth and economic models, these wood property models have the potential to assist in characterisation of standing forest resources and future estate planning.

The battle between Frankenstein and Gilligan and the Law of Increasing Reservoir Complexification: What matters in three-dimensional reservoir characterization modeling?

Two end-member approaches to 3-D reservoir characterization modeling exist. The “Frankenstein” approach integrates hard and soft conditioning data while incorporating geologic concepts and interpretations, to construct a highly detailed deterministic model. The Frankenstein approach focuses on what is known about the reservoir, and is so named because construction of the model can be time-consuming, which can negatively impact project timelines, sometimes “killing” its creator. The “Gilligan” approach uses available data to build suites of models that are simple, and strives to address what is not known about the reservoir. Gilligan models are simplified, at least in the view of the Frankenstein modeler, and focus on quantitative characterizations of uncertainty. Reservoirs usually become more complex with new data from wells and production, a concept referred to here as “the Law of Increasing Reservoir Complexification”. The Law of Increasing Reservoir Complexification should influence earth modeling workflow choices. Currently, the Gilligan probabilistic modeling approach is more commonly employed in early phases of projects. The appearance of overly complex Frankenstein models when probabilistic models are needed remains an ongoing problem. Mature reservoirs typically possess uncertainties that could influence business decisions, and may warrant a Gilligan probabilistic approach as well. No single recipe exists for choosing the best 3-D modeling approach: a fit for purpose or Goldilocks modeling approach should depend on business needs and requirements. Recognition that uncertainty is a fundamental and prevalent driver of business value for all reservoirs in all phases of development demands widespread adoption of probabilistic or Gilligan approaches.

Capital markets and performance of strategic corporate M&A – an investigation of value drivers

PurposeThe paper investigates the market performance of strategic acquisitions for growth in the fifth and sixth merger waves and outlines the major determinants that affect the performance of acquiring companies in these most complex and most challenging corporate transactions.Design/methodology/approachTo perform the quantitative analysis a unique data sample was built out of acquisitions performed in the 5th and 6th merger waves with an only single purpose – strategic growth. Their performance was first analyzed using the method of market-based event study. In addition, the impact of several non-accounting determinants identified through a thorough literature review was tested using univariate/multivariate regression analysis.FindingsThe new findings of the study state that strategic acquisitions for growth created more value for acquiring companies if they were completed internationally and involved an acquisition of a middle-sized company. Moreover, the acquisition of targets in the less related industries (2-SIC) led to stronger performance of acquirers, especially in the international settings.Research limitations/implicationsThe study suggests additional directions for future research. The future analysis can investigate the post-merger acquisition performance of strategic acquirers and can focus on additional financial (accounting) determinants in the evaluation of performance. This perspective can not only address the limitations imposed by the assumption of efficient capital markets but also provide additional insights.Practical implicationsThe results of current study have important implications for executives performing M&A for growth. They show that the market reaction to M&A announcement can be at least partially anticipated and help managers to plan their strategic moves based on a defined set of variables.Social implicationsThe study contributes to the sustainable, value-creating growth dynamics and encourages Executives to “lead for value.”Originality/value(1) In contrast to the existing studies that do not differentiate between the transaction rationale in their analysis, this paper focuses explicitly only on those acquisitions that have strategic growth as their primary objective and responses therefore, to the problem stated by Halpern (1983). This approach helps to mitigate the distortion of results and make a reliable assessment of the strategic move. (2) The results of quantitative analysis also outline that acquisition of mid-sized targets and larger degree of diversification (2-SIC, international focus) code were associated with higher value creation.研究目的本文旨在研究於第五和第六波的併購浪潮中為增長而作出的策略性收購的市場表現;本文亦概述在這些極其複雜的和極具挑戰性的公司交易中影響作收購公司的表現的主要因素.研究設計/方法/理念為了能進行定量分析,研究人員收集在第五及第六波的併購浪潮中以策略性增長為唯一目的的收購個案、建立一個獨特的數據樣本。研究人員首先以基於市場的事件研究法分析那些進行了收購的公司的表現,並以單變量/多變項迴歸分析法去試驗那幾個透過深入的文獻研究而找到的非會計的決定因素的影響.研究結果研究得出的新發現是、如果以增長為目的的策略性收購是於國際間完成及涉及收購中型公司的話,則這收購行動會給進行收購的公司帶來更多價值。而且、如果收購目標的產業與作收購公司的不太相關的話 (2-標準產業分類),收購行動會為進行收購的公司帶來更強的表現、特別是在國際環境下進行這收購行動.研究的原創性/價值(1) 有別於現時其它於其分析中不區分交易理由的研究，本文明確地表示只集中探討那些以帶來策略性增長為主要目標的收購；因此、本研究對 (哈爾彭，1983年)(Halpern, 1983) 陳述的問題作出了回應。本研究的理念有助於減輕我們對收購結果的曲解，從而讓我們對策略性行動能作出可靠的評估. (2) 定量分析的結果、亦概述了以中型公司為目標的收購及更大程度的多樣化 (2－標準產業分類、以國際為焦點) 代碼與創造更大價值是有關聯的。對日後研究的作用/實際影響本研究的結果對學術界及管理人員均具吸引力，亦為策略規劃提供一個額外的工具.對社會的影響本研究可帶來可持續的及可創造價值的增長動力，又可鼓勵行政主管採用以價值為本的領導方針.

Wind power costs driven by innovation and experience with further reductions on the horizon

AbstractThe costs of wind power have declined to levels on par with or below those of conventional sources in many parts of the world. Wind power has become one of the fastest‐growing sources of new electricity generation. We take stock of wind power cost evolution over the past 20 years, review methodologies commonly used for cost assessment, discuss the potential for continued cost reduction, and identify anticipated cost and value drivers. Our scope includes both onshore and offshore wind technologies. We draw from a vast body of literature on these topics to highlight key trends, approaches, and limitations. Furthermore, we discuss strategies for wind power assets to enhance their marginal economic value to the broader power system and consumers. We identify a myriad of factors that are expected to influence the future cost and value of wind power, including siting, project scale, turbine size, operational synergies, commodity prices, advancements in turbine technologies, enhanced management of the wind resource, and novel control technologies that provide value for the electricity grid. Because the common methods for forecasting future costs each have their own strengths and weaknesses, we find the best insights are elicited from a combination of methods. Overall, researchers and analysts anticipate further sizable cost reductions for onshore and offshore wind. Midrange forecasts for levelized cost of energy in 2050 are generally between $20 and $30/MWh for onshore wind and $40 and $60/MWh for offshore wind, a reduction to approximately half of today's levels. Optimistic forecasts anticipate these levels as early as 2030.This article is categorized under: Wind Power > Economics and Policy

A Multi-Criteria Assessment of Corporate Residual Claimants

Corporate law provides shareholders with key legal protections and rights – including voting and fiduciary duties – by virtue of their status as residual claimants of corporations. This status stems from the observation that shareholders are the parties who receive the residual profits of the corporation. This Article argues that this conventional view of residual claimancy is incomplete because it considers only one of the multiple criteria that should be relevant to the residual claimant analysis. The rationale behind residual claimant analysis is that it seeks to identify the party whose interests are aligned with the corporation’s collective interest, and collective interest should be understood to include not only shareholder profit but also other stakeholders’ interests. And indeed, a review of the history and development of residual claimant theory shows that the residual claimant theory originally contemplated a broad array of stakeholders being the residual claimants of corporations. Depending on which of the theories of rent, interest, wages, or profit was adopted, each of landlord, capitalist, laborer, and entrepreneur have been considered to be the residual claimants of the corporation over time. It was only rather recently that residual claimant analysis hardened into the shareholder primacy norm in corporate law, bolstered by the ascendancy of a single-criterion approach to residual claimancy that focuses only on residual profit. Both the history and the rationale of residual claimant analysis support a more diverse conception of the residual claimant, which strives not only for profit maximization, but also for the other goals underlying the recognition of residual claims, including rewarding effective monitors, preserving firm-specific investments, and protecting undiversified risk bearers. In this Article, I offer a multi-criteria assessment of the residual claimant that seeks to address and balance these broader goals. While this recognition of multiple residual claimant interests will necessarily increase the complexity of the analysis, it is expected to bring the allocation of key legal protections and rights more into line with the recent trend towards incorporating a broader understanding of corporate purpose. Furthermore, as greater emphasis is placed not only on investment capital but also information capital as the driver of corporate value, a more diverse conception of the residual claim which recognizes not only shareholders’ capital investments, but also other stakeholders’ contributions, notably of data, is more aligned with how value is created and sustained in today’s society.

Bubbles in Ethereum

We apply the Phillips et al. (2015) methodology to date-stamp bubbles in Ethereum. The analysis of the drivers of fundamental value suggests that the explosive behavior documented in ether prices does not constitute speculative bubbles, but reflects the abrupt rally of demand for the use of smart contracts tied to the development of the decentralized application (dApp) ecosystem.

Valuating consumer credit portfolios

This paper proposes a model in which the borrower credit risk is associated with the cash flow method to assess the economic value of a consumer credit portfolio. A Monte Carlo simulation applying the method in an illustrative loan reveals that the lending standards of the institution, captured in the model by the expected and unexpected losses of the contract according to the Basel II Internal Rating Based Approach, is a key driver for the intrinsic value of the portfolio, lending support to the evidence that a bank’s credit policy and bank valuation are associated

Business Model Themes and Product Market Strategies as Value Drivers in Omni-Channel Retail: A Set of Propositions

We focus on the analysis of current research in Business Models in the context of e-business, resulting in relevant research gaps and a set of propositions. A bibliographic review has been conducted from which a theoretical framework has been developed. Once the gaps in the literature have been pointed out, a series of research proposals are presented. These should be tested based on data collected from real cases through analysis and interpretation. The applied lens of the theory is Amit and Zotts Business Model framework (2001) and Business Model Themes (BMT) “NICE” (novelty, lock-in, complementarity and efficiency) (2001). Analysis evolves around the explanation and feasibility of Business Model Themes for value creation and value capture in digital business models (current general research gap in the e-business domain). The results show that future directions should investigate different combinations of BMTs which represent research gaps (propositions 1 to 3). Other contexts which were not considered so far in this regard (non-digital business), also represent a research gap (proposition 4). Moreover, further synthesis of the literature resulted in a potential consideration of “product market strategies” (Amit and Zott, 2008) as a new theory to apply and test value creation and capturing in digital business (proposition 5 and 6), also from an evolutionary perspective. We ask how this combination affects the performance of firms who want to move on digital transformation with an omnichannel environment. It is essential in this study how these firms can create new value and how they can keep it. We try to explain how these value drivers could be work across time, even under varying environmental regimes. It would mean an advance in the existing academic framework around the reference literature on the business model. To be able to determine which combinations of BMT and Product Market Strategy (PMS) have not yet been tested would be advantageous for the firms. It could offer the appropriate information to the retail company with traditional BM towards digital BM. Moreover, it will be able to work successfully and to maintain constant along the time.

Business Model Themes and Product Market Strategies as Value Drivers in Omni-Channel Retail: A Set of Propositions

Business Model Themes and Product Market Strategies as Value Drivers in Omni-Channel Retail: A Set of Propositions

A conceptual framework for the cognitive enterprise: pillars, maturity, value drivers

ABSTRACT Digital transformation is driving the emergence of a new breed of organisations able to scale quickly, innovate throughout their processes, and lead industries and markets. In particular, the increasing adoption of cognitive technologies, like artificial intelligence, advanced analytics, high-performing computing and cyber-physical systems, allow organisations to create new value based on increased reactivity and resilience, situational awareness, agility and operational excellence. Although the idea of cognitive enterprise is rapidly emerging in the practitioner discussion, a theoretical framing of the concept is still not present in literature. We conduct a systematic review of extant contributions and we extract elements related to two key dimensions represented by the cognitive technological infrastructure (i.e. technologies and data) and the cognitive organizational architecture (i.e. processes and capabilities). We use the outcomes of the review work to define: (a) the pillars of the cognitive enterprise; (b) a framework of cognitive maturity stages; and (c) the enhanced value creation capabilities of the cognitive enterprise. The article provides a literature-derived definition of the cognitive enterprise and guidelines to support managers in the cognitive transformation of their organisations.

Personalisation of treatment pathways – analysis of chances and barriers by the implementation of digital technologies under the conditions of the German Health System

Background: The potential of digital technologies is far from being exhausted for patients. The regulatory framework becomes a brake on innovation due to digitalisation, but also due to the trend towards individualisation. Strategies, corporate culture and processes, which are necessary for the design of high-quality and cost-effective healthcare services, are still lacking in many healthcare providing organisations. Health Services 4.0 and patient integration as leverage: With Health Services 4.0 it is possible to improve the outcome of the individual healthcare service and meet the regulatory requirements. This requires the capabilities of the provider to dynamically balance exploitation and exploration. The challenges are to develop innovations in a continuously changing working environment and/or to adapt (medical) technical innovations into their own service processes. Conclusion: This article is focused on hypotheses of cause-and-effect analyses formulated as scenarios, related to the implementation of digital technologies in order to improve efficiency and effectiveness for a high medical expertise as well as for a higher level of service quality. The output is a more detailed analysis of key value drivers, success factors as well as internal and external value generators for the design of Health Services 4.0. Up to now many issues regarding the use of digital technologies are still only partly analysed and not yet proved for a more efficient care on high-quality level. The company's capacity for ambidexterity is becoming an important dynamic capability, with on one hand flexibility for new developments and on the other hand stability for hard factors in physical value chains and soft factors in value-oriented attitudes and behaviour based on empathy. This article was previously published in German in "Monitor Versorgungsforschung" under the original title " Personalisierung von Behandlungspfaden – Das Potenzial digitaler Technologien". This translated version faithfully reflects the authors, data, and interpretations of the original.

Intellectual capital efficiency and bank performance: Evidence from islamic banks

The purpose of this study is to shed light on the extent of intellectual capital efficiency (ICE) and the relationship of its three components (human capital efficiency, structural capital efficiency, and relational capital efficiency) with Islamic banking performance (in terms of return on assets, return on equity, and Tobin's q) in Muslim countries. We develop hypotheses on this relationship drawing on the resource-based theory. The study employs a two-step system generalized method of moments (2SYS-GMM) estimator to analyze the data collected from 129 Islamic banks in 29 Muslim countries over the period from 2008 to 2017. The study provides evidence that the performance of Islamic banks (IBs) is driven primarily by investment in ICE. The results indicate that structural capital efficiency (SCE) and relational capital efficiency (RCE) are the essential drivers of value in achieving high performance at Islamic banks. The results reveal that human capital efficiency (HCE) negatively affects the performance of IBs. Bank size and foreign ownership are also identified as significant drivers of IBs performance. This study helps IBs to maintain their ICE assets because they are the main drivers for sustaining competitive advantage as well as raising bank productivity. Our findings can help stakeholders and policymakers to recognize the significant components of ICE and a reasonable allocation among them for improving bank performance. To the best of our knowledge, this is the first empirical study to evaluate ICE and its relationship with Islamic banking performance in 29 Muslim countries across the Middle East, South Asia, and Southeast Asia.

Personalisation of treatment pathways - analysis of chances and barriers by the implementation of digital technologies under the conditions of the German Health System.

Background: The potential of digital technologies is far from being exhausted for patients. The regulatory framework becomes a brake on innovation due to digitalisation, but also due to the trend towards individualisation. Strategies, corporate culture and processes, which are necessary for the design of high-quality and cost-effective healthcare services, are still lacking in many healthcare providing organisations. Health Services 4.0 and patient integration as leverage: With Health Services 4.0 it is possible to improve the outcome of the individual healthcare service and meet the regulatory requirements. This requires the capabilities of the provider to dynamically balance exploitation and exploration. The challenges are to develop innovations in a continuously changing working environment and/or to adapt (medical) technical innovations into their own service processes. Conclusion: This article is focused on hypotheses of cause-and-effect analyses formulated as scenarios, related to the implementation of digital technologies in order to improve efficiency and effectiveness for a high medical expertise as well as for a higher level of service quality. The output is a more detailed analysis of key value drivers, success factors as well as internal and external value generators for the design of Health Services 4.0. Up to now many issues regarding the use of digital technologies are still only partly analysed and not yet proved for a more efficient care on high-quality level. The company's capacity for ambidexterity is becoming an important dynamic capability, with on one hand flexibility for new developments and on the other hand stability for hard factors in physical value chains and soft factors in value-oriented attitudes and behaviour based on empathy. This article was previously published in German in "Monitor Versorgungsforschung" under the original title " Personalisierung von Behandlungspfaden - Das Potenzial digitaler Technologien". This translated version faithfully reflects the authors, data, and interpretations of the original.

Transfer Pricing in the Edtech Industry

The edtech/e-learning sector achieved astronomical growth and witnessed significant funding and expansion in 2020. With the growth in this sector, business models have evolved. In this article, the author analyses the edtech industry, its ecosystem, key value drivers and operating model. This analysis is followed by guidance on a plausible transfer pricing policy that may be considered under different models.

ANALYSING THE LINK BETWEEN CSR REPORTING AND FINANCIAL PERFORMANCE VARIABLES OF BELGRADE STOCK EXCHANGE COMPANIES

Corporate Social Responsibility (CSR) reporting has been subject of various discussions of academicians and accounting practitioners. Although the importance of CRS reporting is not under question, the quality of disclosed non-financial information is still under review. In the light of the new Serbian Law on Accounting (Official Gazette of the Republic of Serbia 73/2019) and EU Directive 2014/95 requirements regarding non-financial information, this article investigates the state of non-financial reporting development in Serbian companies in the pre-EU Directive period in order to give suggestions to policymakers how to establish and structure the implementation of the EU Directive and expected challenges on this path. The current state of development of non-financial activities is measured by using content analysis and by creating a non-financial reporting index, namely the CSR index for the Serbian companies listed at Belgrade Stock Exchange. CSR index has been corelated with accounting variables (size of the company, auditor type (non/Big 4), revenue and financial results) in order to get deeper understanding of its value drivers. Serbian companies, listed as large, audited by Big 4 and with better financial performance variables, are companies with the higher value of the CSR index and have a higher quality of non -financial reporting. Big companies can serve as a benchmark for the rest of the companies in the economy, but also those companies will have fewer challenges in the EU non-financial Directive implementation in the post-Directive period. Therefore, Serbian policymakers should focus their attention and implementation procedures on the rest of the economy struggling with the non-financial reporting.

Digital business models and ridesharing for value co-creation in healthcare: A multi-stakeholder ecosystem analysis

The current advancements in digital technologies offer new opportunities for designing and modelling digital business models. In many industries, particularly in healthcare, coordinating and managing relationships with different stakeholders are well-known problems that organizations regularly face. Despite the increasing theoretical and practical relevance of digital business models in healthcare, to date, there is a lack of specific research focused adequately on how value is created, delivered and captured for the various stakeholders in centrally mediated platforms within the healthcare ecosystem. By conducting an exploratory qualitative analysis, this study explores the case of Saluber, an Italian digital start-up offering ridesharing services for non-emergency medical transportation.The results show a series of various service value drivers, single-level benefits and community-level outcomes by which the central mediator of this sharing economy platform creates, delivers and captures value for its various types of stakeholders. These aspects are made available by the integration of digital business models. A multilevel framework of healthcare ecosystem rearranging was developed, which expands the value co-creation process beyond collaboration among various types of stakeholders and emphasizes the outcome of the digitalized network. Implications for scholars and managers are offered.