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

Abstract

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