Drivers of value creation—The role of value-based management and underlying institutions

Firk, Sebastian; Schrapp, Sebastian; Wolff, Michael

doi:10.1016/j.mar.2016.04.002

Cited by 45 publications

(74 citation statements)

References 90 publications

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“…These systems are used as a fundamental tool for assessing managerial performance and as central measures for the management control systems (Malmi, Ikäheimo, 2003). The fundamental formulation of these systems derives from the theory of agents; VBM is systems for aligning property and management interests, in order to reduce the cost that can be derive from the conflicts of interest (Lovata, Costigan, 2002;Ryan, Trahan, 2007;Firk, et al, 2016;Knauer, et al, 2018;Shultze, et al, 2018). Among these, we can include an important theoretical framework about VBM systems based on a normative approach.…”

Section: Identification and Analysis Of The Dominant Theme Definitionmentioning

confidence: 99%

“…At the beginning of the '00s, it was possible to count more or less 160 different adjustments of the main components of the EVA model, the operating income and the cost of invested capital (Lovata, Costigan, 2002). One of the primary object of a VBM systems regard the alignment of the managements and shareholders' interests for decreasing the cost of interest's conflicts (Lovata, Costigan, 2002;Ryan and Trahan, 2007;Firk, et al, 2016;Knauer, et al, 2018;Shultze, et al, 2018). Therefore, a series of measures, technicalities and models were developed for the management remuneration systems, an important mechanism of Corporate Governance (Garvey, Milbourn, 2000).…”

Section: Tools Models and Technicalitiesmentioning

confidence: 99%

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Value Based Management Systems and Firm Performance: An Analysis of the Literature

Corazza¹

2019

Managing Geostrategic Issues

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The main purpose of this paper is to analyse the international VBM systems debate, understanding the state of the art in the Accounting literature. According to the systematic literature review process described by Massaro, Dumay and Guthrie (2016), with the use of NVivo software as a fundamental tool for developing the qualitative research, this study tries to identify the main streams of the VBM systems literature. The debate about VBM systems is still open and is focused on three main streams of research: studies focused on the tools, model and technicalities for the VBM systems implementation; studies related on the VBM systems characteristics and its relations with the Firm's characteristics and studies focused on the VBM systems relation with the firm' performance. Literature point out the necessary interrelation between the firm's characteristics and the characteristics of this system. VBM adopters achieve a positive performance effects, in terms of shareholder value creation. Literature' analysis show an important gap, it regards the absence of a theoretical framework for defining and analysing this type of systems and the firm's characteristics. This study tries to fill this gap by analysing the state of the art in the accounting literature, with the scope to understand deeply the origins of the VBM performance effects.Keywords: value based management systems, value based metrics, value based management systems adopters, corporate performance, shareholder value

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Section: Identification and Analysis Of The Dominant Theme Definitionmentioning

confidence: 99%

Section: Tools Models and Technicalitiesmentioning

confidence: 99%

Value Based Management Systems and Firm Performance: An Analysis of the Literature

Corazza¹

2019

Managing Geostrategic Issues

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“…Institutions subsume regulative, normative, and cultural‐cognitive conditions that determine organizations' behavior (Scott, , ), whereas regulative conditions are considered as formal institutions, and normative and cultural‐cognitive conditions as informal institutions (Bell, Moore, & Filatotchev, ; Peng, Wang, & Jiang, ). Recent research indicates that institutions affect firms in terms of, for instance, their research and development (R&D) expenses (Hillier, Pindado, de Queiroz, & de la Torre, ), compensation contracts of their executives (Hüttenbrink, Oehmichen, Rapp, & Wolff, ; van Essen, Heugens, Otten, & van Oosterhout, 2012), the effectiveness of value‐based management (Firk, Schrapp, & Wolff, ), and the strategic influence of their board of directors (Heyden, Oehmichen, Nichting, & Volberda, ; Oehmichen, Schrapp, & Wolff, ). Institutions are especially relevant to decision making in MNEs that must deal with the differing institutions of host countries (Hoskisson, Eden, Lau, & Wright, ; Meyer & Peng, ).…”

Section: Employees' Evaluations Of Esop Participationmentioning

confidence: 99%

Employee participation in employee stock ownership plans: Cross‐level interaction effects of institutions and workgroup behavior

Oehmichen

Wolff

Zschoche

2017

Human Resource Management

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In this multilevel study, the authors investigate the influence of country‐level formal institutions and workgroup behavior on foreign subsidiary employees' participation in employee stock ownership plans (ESOPs). Based on the perspectives of bounded rationality, transaction cost theory, and psychological ownership, the authors argue that weak formal institutions restrain multinational enterprises from effectively implementing ESOPs due to reduced employee participation. However, the authors expect that workgroup behavior—more specifically, the participation of the workgroup's members and superiors in ESOPs—has a positive influence on employees' ESOP participation. Furthermore, the authors analyze whether cross‐level effects of institutions and workgroup behavior function as substitutes or complements. They empirically examine the ESOP participation of 185,291 foreign subsidiary employees in 28 countries. The results confirm the hypotheses about direct effects of weak institutions and workgroup behavior and additionally provide support for a complementary relationship between institutions and workgroup behavior.

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“…In some organizations, the application of VBM is restricted only to the highest levels of hierarchy, whereas it covers the whole organization in others (Malmi and Ikäheimo, 2003). Institutions (particularly, the intra-organizational process by which the institutionalization of management accounting systems shapes organizational change) play a significant role as contingency factors for VBM's impact on a firm's performance (Firk et al, 2016). External institutions constituting part of the business environment affect VBM adoption and its effects (Lueg and Schäffer, 2010).…”

Section: Eva = (Roic -Wacc) · Icmentioning

confidence: 99%

Multi-criteria decision methods for CSR management – literature review

Doś

2017

manage

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Drivers of value creation—The role of value-based management and underlying institutions

Cited by 45 publications

References 90 publications

Value Based Management Systems and Firm Performance: An Analysis of the Literature

Value Based Management Systems and Firm Performance: An Analysis of the Literature

Employee participation in employee stock ownership plans: Cross‐level interaction effects of institutions and workgroup behavior

Multi-criteria decision methods for CSR management – literature review

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