Utilization of Value-based Management in the Strategic Management of German Automotive Industry

Razaq Raj, Valentin Beck and Alaa Soliman

Global Business Review, 2019, vol. 20, issue 4, 871-886

Abstract: Abstract The purpose of this research article is to analyse the value-based management commitment of automotive enterprises and to examine the factors that explain the control parameters in automotive industry. There have been a few empirical studies published in the German’s automotive sector, but most of the existing studies failed to provide evidence of utilization of value-based management in the strategic management in the automotive sector. The German automotive industry’s development is closely related to global economic developments. Previous research work has considered control parameters of enterprises, but there is little evidence on the factors that explain which control parameters are used in automotive industry. A survey based on annual reports from 2008 to 2011 is used. In total, 20 annual reports of automotive companies were analysed. The results show that automotive companies, especially original equipment manufacturers and listed suppliers, have committed to value-oriented management and have implemented value-oriented approaches. However, not all of the suppliers are communicating this in their reports. The results also show that economic value added is the leading key indicator in the automotive industry.

Keywords: Shareholder value; value-based management; control parameters; automotive enterprises (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0972150919845236 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:globus:v:20:y:2019:i:4:p:871-886

DOI: 10.1177/0972150919845236

Access Statistics for this article

More articles in Global Business Review from International Management Institute
Bibliographic data for series maintained by SAGE Publications ().