scholarly journals Black-Scholes Flexibility of European Companies in the Digital Age

2021 ◽  
Vol 129 ◽  
pp. 03032
Author(s):  
Martin Uzik ◽  
Christopher Runge
Keyword(s):  
Business Models ◽  
Value Added ◽  
Digital Age ◽  
Equity Market ◽  
Corporate Management ◽  
Sales Growth ◽  
Book Value ◽  
Explanatory Variables ◽  
Financial Options ◽  
Black Scholes

Research background: “How much is flexibility worth?” This question is the title of one of almost countless contributions. In these, procedures are discussed with which existing room for manoeuvres in corporate management can be quantitatively mapped. When Myers recognized in 1977 that decision-making situations in companies have the characteristics of financial options, he laid the foundation for the theory of real options. In the following years, further articles appeared dealing with the problem of the value-based recording of flexibility. Purpose of the article: The aim of this paper is to empirically test the explanatory variables of Black-Scholes flexibility. A period from 2000 to 2020 is analyzed, as it is assumed that the digital age had already found its way into companies’ business models at that point in time. Methods: In the following, using the approach described above, the value of flexibility from the Black-Scholes call option is determined for the years 2000 to 2020. The sample comprises the STOXX Europe 600. The aim of the model is to test whether the flexibility determined by Black-Scholes can be explained by selected parameters. These include intangibles, sales growth, debt to equity, market to book value, and earnings in the form of profitability Findings & Value added: The results show which variables explain the Black-Scholes flexibility as well as how the Black-Scholes flexibility has evolved over the period studied.

scholarly journals ECONOMIC VALUE ADDED (EVA) dan MARKET VALUE ADDED (MVA) SEBAGAI ALAT UKUR KINERJA PERUSAHAAN

IQTISHODUNA ◽  
2011 ◽  
Vol 3 (2) ◽  
Author(s):  
Fitriyah Fitriyah
Keyword(s):  
Cost Of Capital ◽  
Economic Value ◽  
Value Added ◽  
Market Value ◽  
Equity Market ◽  
Company Performance ◽  
Book Value ◽  
Market Value Added ◽  
The Cost ◽  
A Company

Company performance is a measure that describes the financial condition of a company. The measurement of financial performance is based on the data gathered from financial reports made by the company. One of the popular measure for financial performance is financial ratios. However, financial ratios are only focused on accounting profit and do not include capital cost, so the resulting information cannot give adequate insight on the expected return from the investments made by the investors. In order to provide a solution for this challenge, a new concept has been proposed, that is economic value added (EVA) and market value added (MVA). EVA is a measure of added value generated by a company by reducing cost of capital that will indicated whether the rate of return is higher than the cost of capital expended for financing the investment. While MVA is a cumulative outcome of company performance which results from various investment which has been committed or is expected to be made. Hence, the success in terms of MVA is the success in maximizing the wealth of shareholders by allocating proper resources.EVA is calculated by subtracting after-tax net operating income from weighted average cost of capital (WACC). A positive EVA means that the company gains a greater return than the cost of capital, so that the investors will gain a return from their investment, and vice versa. MVA is calculated by subtracting equity market value with equity book value. Equity market value is calculated by multiplying the number of outstanding shares with share price, while equity book value is calculated by multiplying the number of outstanding shares with the nominal value per share. A positive MVA ( 1) means that that the management has been able to improve the wealth of the company and, by the same token, the investors' wealth, and vice versa.

scholarly journals Joint Innovation Investment and Pricing Decisions in Retail Supply Chains with Customer Value

2021 ◽  
Vol 13 (3) ◽  
pp. 1309
Author(s):  
Jiali Qu ◽  
Benyong Hu ◽  
Chao Meng
Keyword(s):  
Supply Chain ◽  
Cooperative Game ◽  
Customer Value ◽  
Business Models ◽  
Value Added ◽  
Revenue Sharing ◽  
Nash Bargaining ◽  
Product Price ◽  
Pricing Decisions ◽  
Game Equilibrium

In the retail industry, customer value has become the key to maintaining competitive advantages. In the era of new retail, customer value is not only affected by the product price, but it is also closely related to innovations, such as value-added services and unique business models. In this paper, we study the joint innovation investment and pricing decisions in a retailer–supplier supply chain based on revenue sharing contracts and customer value. We first find that, in the non-cooperative game, equilibrium only exists in the supplier Stackelberg game. However, revenue sharing contracts cannot coordinate the supply chain in the non-cooperative game. By considering supply chain members’ bargaining power, we find that there exists a unique equilibrium for the Nash bargaining product. In addition, revenue sharing contracts can coordinate the supply chain and achieve the optimal consumer surplus. When the supply chain is coordinated, supply chain profit is allocated to the supply chain members based on their bargaining powers.

scholarly journals Determinants of Firm Performance: Evidence from Romanian Listed Companies

2016 ◽  
Vol 9 (1) ◽  
pp. 53-69 ◽  
Author(s):  
Sebastian Lazăr
Keyword(s):  
Firm Performance ◽  
Fixed Effects ◽  
Value Added ◽  
Listed Companies ◽  
Sales Growth ◽  
Fixed Effects Model ◽  
Resource Based View ◽  
Firm Profitability ◽  
Negative Effect ◽  
Positive Effect

AbstractThe paper investigates firm-specific determinants of firm profitability for Romanian listed companies over the 2000-2011 period within the framework of resource based view of the firm. The results show that tangibles, leverage, size and labour intensity have negative effect on firm performance, while sales growth and value added have a positive effect. The results prove robust when introducing two-way fixed effects model and industry year effects model (in order to simultaneously account for specific industry characteristics and time effects).

scholarly journals DigiPrime: Digital Platform for Circular Economy in Cross-Sectorial Sustainable Value Networks

Proceedings ◽  
2020 ◽  
Vol 65 (1) ◽  
pp. 1
Author(s):  
Elena Mossali ◽  
Marco Diani ◽  
Marcello Colledani
Keyword(s):  
Circular Economy ◽  
Business Models ◽  
Value Added ◽  
Environmental Crisis ◽  
Value Chains ◽  
Economic Opportunity ◽  
Construction Sector ◽  
Digital Platform ◽  
Sustainable Value ◽  
Value Added Products

Circular Economy is the solution for the current environmental crisis, representing a huge economic opportunity to build new sustainable businesses. However, many barriers need to be faced for its implementation at industrial scale—firstly, the lack of data sharing between the different stakeholders of product value-chains. The DigiPrime project is an EU-funded Innovation Action aimed at developing and demonstrating a digital platform with services able to unlock innovative cross-sectorial business models for the remanufacturing and recycling of target value-added products. In this paper, the concept behind the DigiPrime project is reported, with a particular focus on the construction sector.

Why management models are crucial to the success of business models

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Stephen Denning
Keyword(s):  
20Th Century ◽  
21St Century ◽  
Design Methodology ◽  
Business Models ◽  
Digital Age ◽  
Management Model ◽  
Digital Innovation ◽  
Content Type ◽  
Management Models ◽  
Practical Implications

Purpose The author posits that the management model of an organization determines what kind of business models can be pursued within that organization and that successful 21st century management models are very different from those that succeeded in the 20th century. Design/methodology/approach The author compares and contrasts successful 21st century management models with models that succeeded in the 20th century. Findings Success in the digital age requires a 21st century management model and mindset based on an obsession with delivering value to customers. Practical implications The management model incorporates the key ‘written and unwritten rules’ of the firm. The success of digital innovation can be threatened by 20th Century management assumptions that thwart Agile initiatives. Originality/value Article explains how Agile mindsets and practices are essential to the 21st century management model, and how they potentiate the firm’s focus on creating customers.

From managing customers to joint venturing with customers: co-creating service value in the digital age

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Christine Falkenreck ◽  
Ralf Wagner
Keyword(s):  
Perceived Risk ◽  
Structural Equation ◽  
Business Models ◽  
Joint Venture ◽  
Digital Age ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Data Set ◽  
Content Type

Purpose Until today, scholars claim that the phenomenon of “co-creation” of value in an “interacted” economy and in the context of positive actor-to-actor relationships has not been adequately explored. This study aims to first to identify and separate the accessible values of internet of things (IoT)-based business models for business-to-business (B2B) and business-to-government (B2G) customer groups. It quantifies the drivers to successfully implement disruptive business models. Design/methodology/approach Data were gathered from 292 customers in Western Europe. The conceptual framework was tested using partial least square structural equation modeling. Findings Managing disruptions in the digital age is closely related to the fact that the existing trust in buyer-seller relationships is not enough to accept IoT projects. A company’s digitalization capabilities, satisfaction with the existing relationship and trust in the IoT credibility of the manufacturer drives the perceived value of IoT-based business models in B2B settings. Contrastingly, in B2G settings, money is less important. Research limitations/implications Research refers to one business field, the data set is of European origin only. Findings indicate that the drivers to engage in IoT-related projects differ significantly between the customer groups and therefore require different marketing management strategies. Saving time today is more important to B2G buyers than saving money. Practical implications The disparate nature of B2B and B2G buyers indicates that market segmentation and targeted marketing must be considered before joint-venturing in IoT business models. To joint venture supply chain partners co-creating value in the context of IoT-related business models, relationship management should be focused with buyers on the same footing, as active players and co-developers of a personalized experience in digital service projects. Originality/value Diverging from established studies focusing on the relationship within a network of actors, this study defines disruptive business models and identifies its drivers in B2B and B2G relationships. This study proposes joint venturing with B2B and B2G customers to overcome the perceived risk of these IoT-related business models. Including customers in platforms and networks may lead to the co-creation of value in joint IoT projects.

scholarly journals Management of ICT Implementations in Enterprises in Poland

2019 ◽  
Vol 8 ◽  
pp. 61-75
Author(s):  
Bogusława Ziółkowska
Keyword(s):  
Information Technologies ◽  
Business Models ◽  
Business Processes ◽  
Value Added ◽  
Digital Transformation ◽  
Social Consequences ◽  
Resource Configuration ◽  
Strategic Approach ◽  
The Face ◽  
Distance Communication

In order to develop and be competitive, modern enterprises, which function in an environment that is globalised, dynamic and subject to strong digitalisation pressure, need to implement information technologies in a way that will allow them, as they achieve further levels of virtualisation, to maintain, and even enhance, their ability to create value added. As business activity is moved to a space shaped by computers and IT networks and distance communication tools and forms are developed, the importance of establishing contacts and relations in the organisation and execution of value-creation business processes increases. Digitalisation of the economy and society is one of the most dynamic changes of our times, opening up new opportunities to create business models, while bringing uncertainty and various threats connected, among other things, with social consequences of the automation of production processes and security in a broad sense. The aim of the presentation is to indicate areas of activity in which information technologies are most often implemented in enterprises in Poland as well as managers' strategic approach to this problem in the face of digital transformation. The paper presents the level of Polish enterprises’ engagement in the process of digital transformation and shows how the progress in terms of implementation of modern ICT in the aspect of customer contacts, managing and executing contacts with suppliers and recipients and resource configuration, impacts the effectiveness of the enterprises surveyed.

Quality of Cloud Services

2012 ◽  
pp. 1609-1620
Author(s):  
Anette Weisbecker
Keyword(s):  
Information Technology ◽  
Cloud Computing ◽  
Business Models ◽  
Value Added ◽  
Cloud Services ◽  
The Internet ◽  
Success Factor ◽  
Distributed Resources ◽  
Critical Success

Cloud Computing has become the predominant paradigm in information technology for the use of distributed resources. It enables the Internet of Services where different provider offer services and compose services to new value added services. For the emerging service value chains the quality the services plays an important role. Therefore, beside software engineering methods aspects like quality of services, business models, and the interaction with the customer have to be considered during the development of cloud services. This chapter describes how these aspects can be integrated in the development process by combining software and service engineering methods and considering quality as a critical success factor in the design time.

Collaborative Networks

2013 ◽  
pp. 1638-1653
Author(s):  
Kathryn Cormican
Keyword(s):  
Knowledge Sharing ◽  
Open Innovation ◽  
Small Firms ◽  
Success Factors ◽  
Business Models ◽  
Value Added ◽  
Collaborative Networks ◽  
End User ◽  
Critical Success ◽  
Innovative Solutions

The business landscape has changed dramatically in recent years. Innovative organisations are restructuring their business models. They are moving away from discrete linear value chains towards open innovation models such as networks. Small to Medium Sized Enterprises (SMEs) recognise that in order to survive they must be equipped with the relevant competencies required to design, develop and deploy innovative solutions that meet the needs of the end user. More and more small firms are collaborating with each other in order to create value added products and access new markets. However, the task of working in a collaborative network is not easy. SMEs find it particularly difficult to engage in these activities and experience many challenges in this regard. Moreover, there are very few support structures and systems available to guide successful knowledge sharing and collaboration. This chapter explores the fundamental concepts of collaborative networks and knowledge sharing, synthesises and presents some of the challenges faced by SMEs and identifies some critical success factors that should be considered to help overcome the barriers identified.

Collaborative Networks

2011 ◽  
pp. 169-184
Author(s):  
Kathryn Cormican
Keyword(s):  
Knowledge Sharing ◽  
Open Innovation ◽  
Small Firms ◽  
Success Factors ◽  
Business Models ◽  
Value Added ◽  
Collaborative Networks ◽  
End User ◽  
Critical Success ◽  
Innovative Solutions

The business landscape has changed dramatically in recent years. Innovative organisations are restructuring their business models. They are moving away from discrete linear value chains towards open innovation models such as networks. Small to Medium Sized Enterprises (SMEs) recognise that in order to survive they must be equipped with the relevant competencies required to design, develop and deploy innovative solutions that meet the needs of the end user. More and more small firms are collaborating with each other in order to create value added products and access new markets. However, the task of working in a collaborative network is not easy. SMEs find it particularly difficult to engage in these activities and experience many challenges in this regard. Moreover, there are very few support structures and systems available to guide successful knowledge sharing and collaboration. This chapter explores the fundamental concepts of collaborative networks and knowledge sharing, synthesises and presents some of the challenges faced by SMEs and identifies some critical success factors that should be considered to help overcome the barriers identified.

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