The value creation index:

Abstract

There is increasing recognition of the importance of intangible assets. There is also a pressing need for a set of widely accepted metrics by which corporate leaders and the investment community can account for the non‐financial factors that affect value creation in the modern enterprise. Intangibles have always been a driver of corporate performance, and institutional investors take intangibles into account in their analysis and earnings estimates. Managers, by the same token, are increasingly adopting non‐traditional methodologies of measurement. The authors report on the work of Cap Gemini Ernst & Young researchers who have developed a rigorous, comprehensive model, the value creation index. The index combines the impact of key value drivers (e.g. innovation, quality, customer relations, management capabilities, alliances, technology, brand value, employee relations, and environmental and community issues) to form a single measure of non‐financial performance.

Analysing the relevance of value creation in the interconnection amongst entrepreneurship, marketing and innovation: a systematic literature review

“…Second, we define the research trends and recurrent thematic areas using a cooccurrence analysis of the keywords. Finally, we identify the correlation amongst entrepreneurship, innovation, marketing and value creation through the value creation index (Low, 2000;Kalafut and Low, 2001).…”

“…The model starts from the innovation that can be itself a source of ideas for the construction of an enterprise on the part of an entrepreneur (Brem, 2011;Aksoy, 2017;Schmitz et al, 2017), but at the same time, it is the entrepreneur that can create innovation with its competencies (Sarasvathy, 2001;Stokes, 2000b;Hansen and Eggers, 2010) and exploit (Matsuno et al, 2002;Nasution et al, 2011;Riswanto et al, 2020) through marketing capabilities. Hence, the concept of entrepreneurial marketing (Morris et al, 2002;Stokes, 2000a;Yadav and Bansal, 2020) links the two capabilities, leading to the creation of value when fully exploited (Low, 2000;Kalafut and Low, 2001;Matsuno et al, 2002). Innovation can stimulate the creation of entrepreneurship through the skills of an entrepreneur who adopts marketing strategies to seize market opportunities and create a competitive advantage for businesses that adopt such a setup.…”

Appraising Intangible Assets from the Viewpoint of Value Drivers

“…Drivers must be attributes that would be responsible by the definition of the intangible assets' values. An example of a possible list of non-financial drivers of value is presented by Kalafut and Low (2001). These authors suggest a list containing nine drivers, which are the most critical ones in their researches.…”

“…The validity is concerned with both nomological validity and content validity. Since this research integrates theories from other researchers (mainly Kalafut and Low, 2001), while developing the questionnaire on different levels, the contents of the questionnaire should be reasonable in terms of the nomological validity. Furthermore, under the review of several experts and scholars, the constructs and criterion are affirmed to have a clear expression and to effectively measure the objectives.…”

“…Taking into consideration categories defined by Kalafut and Low (2001) and other authors as noted before, the evaluation model of this research can be divided into five appraising dimensions and 22 appraising criteria for probing into the issue regarding the value weights of intangible assets in technology business. We also invite experts and other scholars in the relating fields to confirm the fit and the reasonableness of the model construct.…”