Value-Creation Models for Value-Based Management: Review, Analysis, and Research Directions

Journal Article (Review)

Models of value creation that have been proposed for supporting value-based management are described and analyzed, including the Balanced Scorecard, the Baldrige Quality Award Criteria, the Deming Management Method, the Service-Profit Chain, and the Skandia Intellectual Capital Model. These models are compared, their potential for guiding the identification of value drivers and performance measures for value-based management is assessed, and management issues that must be addressed if such models are to contribute to long-run value creation are explored. These issues include causally linking value drivers to each other and to financial outcomes, the extent to which the models take a dynamic, or whole-system, view of value creation, and whether multiple value drivers should be explicitly weighted and combined to form a "value index." Finally, the substantial body of research evidence linking intangible value drivers to financial outcomes is reviewed, and some directions for further research are offered. © 2007 Elsevier Ltd. All rights reserved.

Full Text

Duke Authors

Cited Authors

  • Ashton, RH

Published Date

  • April 4, 2007

Published In

Volume / Issue

  • 16 /

Start / End Page

  • 1 - 62

International Standard Serial Number (ISSN)

  • 1474-7871

Digital Object Identifier (DOI)

  • 10.1016/S1474-7871(07)16001-9

Citation Source

  • Scopus