INTERDEPENDENCE OF BUSINESS VALUE COMPONENTS IN VALUE CREATION AND VALUE CAPTURE CONCEPTS1

Sonja Brlecic Valcic () and Jana Katunar ()
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Sonja Brlecic Valcic: Saipem SpA Croatian Branch, Rijeka, Croatia
Jana Katunar: University of Rijeka, Faculty of Economics, Rijeka, Croatia

Interdisciplinary Management Research, 2015, vol. 11, 84-95

Abstract: Modern economic concepts are focused on sustainable business models where key processes and resources contribute to a company’s value creation and capture. It is important to notice the existence and the interdependence of the three value categories in this process: value in use, shareholder value and shared value. This process is manifested with the ability to create future cash flows based on strategy and business excellence, capital structure, optimal shareholder value, as well as competitiveness of a company in advancing the economic and social conditions in the communities in which it operates. Such a sustainable system of value creation and capture is based on trust, cooperation and responsibility. The value in use category is presented in this paper through combination of the return on existing assets and new investments evaluation. Shareholder value category implies the increase of equity market value, dividends paid during the year, other payments to shareholders and outlays for capital increases. Connection of social needs, business opportunities together with corporate assets and expertise form the basis for the shared value component. Based on the essential parts of the aforementioned value categories, the authors propose a conceptual model for value creation and value capture. This approach emphasizes the connectivity of company success with social progress.

Keywords: value creation; value capture; value in use; shareholder value; shared value (search for similar items in EconPapers)
JEL-codes: G32 L21 M10 (search for similar items in EconPapers)
Date: 2015
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