Value-Based Management in Mittelstand: The Relevance to Strategic Decision-Making, Objectives, and Attitudes (Familienunternehmen und KMU)

In this book Carola Normann-Tschampel develops an enhanced understanding of the relevance of Value-Based Management (VBM) to management practice in Mittelstand. A theory-practice gap is identified based on a unique overview of the field of research. The empirical investigation focuses on three specifically identified areas of management (strategic decision-making, objectives, attitudes) and uses a specific research approach. The insights gained from taking an interpretive stance towards owner-managers' practical experience provide a valuable basis to further address the overall research gap. Contents Identification of three key topics and research gaps in the literature on VBM in Mittelstand Framework for the evaluation of the role of VBM in Mittelstand Use of management tools in strategic decision-making Specific objectives and nuances in the overall target course Understanding of and attitudes towards VBM Target Groups Scholars and students of business administration, strategic management, and managerial accounting, who are interested in Mittelstand Specialists and executive staff in the field of management control, strategy, and managerial accounting, especially from Mittelstand About the Author Dr. Carola Normann-Tschampel has academic and practical experience with a focus on managerial accounting and Mittelstand. She currently holds a position as managerial accountant in an internationally active Mittelstand company and works as a visiting lecturer Acknowledgements Table of contents Detailed table of contents List of figures Abbreviations Abstract 1 Introduction 1.1 Background of the research 1.2 Research gap, objective and questions 1.3 Structure of the thesis 2 Literature review 2.1 Mittelstand 2.1.1 Aim and approach of the section 2.1.2 Delineation of Mittelstand towards related phenomena 2.1.2.1 Difficulties and criteria used in defining Mittelstand and related phenomena 2.1.2.2 Small- and medium-sized entities 2.1.2.3 Mittelstand 2.1.2.4 Family businesses 2.1.3 Characteristics of Mittelstand 2.1.4 Role of Mittelstand in Germany 2.1.5 Summary of the section 2.2 Introduction to value-based management 2.2.1 Aim and approach of the section 2.2.2 Introduction to value-based management and its origin 2.2.3 Significance to management practice in Germany 2.2.4 Summary of the section 2.3 Value-based management in Mittelstand 2.3.1 Aim and approach of the section 2.3.2 Delineation of the understanding of value-based management 2.3.2.1 Understanding of value-based management 2.3.2.2 Demarcation towards other understandings of value and related debates 2.3.3 Drivers, hurdles and applicability of value-based management in Mittelstand 2.3.3.1 Key drivers 2.3.3.2 Main hurdles 2.3.3.3 Stance towards applicability of VBM in Mittelstand 2.3.4 Adaptation of value-based management to mittelständische characteristics 2.3.5 Empirical analysis of value-based management in Mittelstand 2.3.5.1 Overview of empirical studies focusing on VBM in Mittelstand 2.3.5.2 Application of VBM in Mittelstand 2.3.5.3 Influencing and success factors 2.3.5.4 Economic benefit 2.3.6 Summary of the section: Key topics and gaps in the field of research 2.4 Framework for the evaluation of the role of VBM in Mittelstand 2.4.1 Aim and approach of the subsections 2.4.2 Value-based management in strategic decision-making in Mittelstand 2.4.2.1 Background for researching VBM in strategic decision-making in Mittelstand 2.4.2.2 Review of empirical studies in the context of VBM in strategic decision-making in Mittelstand 2.4.2.3 Summary of the subsection 2.4.3 Value-based management in objectives in Mittelstand 2.4.3.1 Background for researching VBM in the context of objectives in Mittelstand 2.4.3.2 Review of recent empirical studies in the context of VBM in objectives in Mittelstand 2.4.3.2.1 Level of analysis 2.4.3.2.2 Existing findings 2.4.3.3 Summary of the subsection 2.4.4 Attitudes towards value-based management in Mittelstand 2.4.4.1 Background for researching the attitudes towards VBM 2.4.4.2 Review of empirical studies touching upon attitudes towards VBM 2.4.4.3 Summary of the subsection 3 Research approach 3.1 Aim and approach of the chapter 3.2 Key characteristics of the field of research 3.3 Reasoning and logic of enquiry 3.4 Methodology 3.5 Theoretical perspective 3.6 Methods 3.6.1 Interviews as a method of data collection 3.6.2 Sampling technique 3.6.3 Approach to getting access 3.6.4 Conducting semi-structured, in-depth interviews 3.6.5 Conducting the fieldwork 3.6.5.1 Pilot study 3.6.5.2 Main study 3.6.6 Data analysis 3.7 Ethical considerations, transparency and reflexivity 3.8 Summary of the chapter 4 Findings and discussion 4.1 Description of sample 4.1.1 Company characteristics 4.1.2 Background information on the interviewees 4.2 Strategic decision-making 4.2.1 Aim and approach of the section 4.2.2 How strategic decisions are addressed in the interviews as context 4.2.2.1 Aim and approach of the subsection 4.2.2.2 Different kinds of decision 4.2.2.3 Different levels of talking about strategic decision-making 4.2.3 Use of (VBM) management tools and Key Performance Indicators 4.2.3.1 Aim and approach of the subsection 4.2.3.2 Business plan and/or planning profit and loss statement 4.2.3.3 Cost accounting 4.2.3.4 Methods of investment appraisal 4.2.3.5 Cash flow 4.2.3.6 Balanced Scorecard 4.2.3.7 VBM management tools and Key Performance Indicators 4.2.3.8 Other management tools 4.2.4 Views on the net present value method 4.2.4.1 Aim and approach of the subsection 4.2.4.2 Application of the net present value method 4.2.4.3 Awareness of the net present value method 4.2.4.4 Views relating to the application of the net present value method and management tools 4.2.5 Summary of the section and discussion 4.3 Objectives 4.3.1 Aim and approach of the section 4.3.2 Specific objectives of Mittelstand 4.3.2.1 Aim and approach of the subsection 4.3.2.2 Securing existence 4.3.2.3 Market-oriented objectives 4.3.2.4 Employee-oriented objectives 4.3.2.5 Independence 4.3.2.6 Objectives related to internal improvements 4.3.2.7 Objectives relating to the size of the company 4.3.2.8 Increase of company value 4.3.2.9 Realisation of profit 4.3.3 Nuances in the overall target course 4.3.3.1 Aim and approach of the subsection 4.3.3.2 Group OBJ-A: Only other, non-economic objectives 4.3.3.3 Group OBJ-B: Primarily non-economic objectives, in addition profit and/or earning money as objectives 4.3.3.4 Group OBJ-D: Profit and/or rate of return as key objectives 4.3.3.5 Group OBJ-C: Coexistence of non-economic objectives and profit and/or rate of return as objectives 4.3.3.6 Group OBJ-E: Increase of the company value 4.3.4 Summary of the section and discussion 4.4 Understanding of and attitudes towards value-based management 4.4.1 Aim and approach of the section 4.4.2 Understanding and attitudes referred to after open question 4.4.3 Understanding and attitudes referred to after the introduction of the understanding derived from the literature review 4.4.3.1 Overall view 4.4.3.2 Increase of the company value not relevant (Group VBM2-V-A) 4.4.3.3 Increase of the company value has a certain relevance (Groups VBM2-V-B and VBM2-V-C) 4.4.3.4 Different attitudes towards the shareholder value approach (Groups VBM2-V-D and VBM2-V-E) 4.4.3.5 Discussion in light of the understanding of VBM derived from literature 4.4.4 Summary of the section and discussion 5 Conclusion 5.1 Research gaps and research questions 5.2 Findings and contributions in relation to the research questions 5.2.1 Strategic decision-making in Mittelstand 5.2.2 Objectives in Mittelstand 5.2.3 Understanding of and attitudes towards value-based management 5.3 Contribution to knowledge 5.4 Limitations and avenues for further research Appendices – List of figures Appendices References