Value-based management (VBM) is a set of management tools which relies on the value creation concept in maximizing wealth or value for shareholders. In this paper, the use of value-orientation in Electric and Electronic companies in Thailand is studied. In 2011, the Electric and Electronic industry in Thailand included 1,993 companies and brought in about fifteen percent of the country’s export value (Department of International Trade Promotion 2012). Hence, production and sales of electric and electronic products were a crucial part of the Thai economy. Value-orientation of the management in this industry has not been sufficiently researched. This paper summarizes a research which examined the importance of the VBM tools for Electric and Electronic firms and explored the motivation and benefits for managers to implement such tools in conducting their business.
A qualitative (field study) method was used in this research in an attempt to find out why and how VBM was implemented in Thai Electric and Electronic companies to create value. The researchers examined whether the management of these companies focused on creating value and explored their motives for value creation. The research was conducted using in-depth interviews with some managers of Thai electric and electronic firms who participated in the NEPCON Thailand 2011. The NEPCON Thailand 2011 was held in June 2011 and approximately 350 brand-name companies from twenty two countries participated in this event. The researchers interviewed managers of six Thai companies, some top managers of corporations and some owner-entrepreneurs.
The result identified some internal and external factors as value-drivers for the implementation of VBM in Thai Electric and Electronic companies. This research found that managers were aware of the significance of implementing value-oriented strategies and integrated value creation concepts into their strategic planning process. In addition, this research also found three key value drivers in these Thai companies: sales growth, operating effectiveness, and green productivity. In conclusion, researchers suggest more research on key performance indicators (KPIs) for each value-driver and their effects and influence on the use of the VBM.
|Keywords:||Value Creation, Value-based Management, Value Drivers|
Lecturer, Business Administration Division, International College, Mahidol University, Nakorn Pathom, Nakorn Pathom, Thailand
Facuty, School of Business & Public Administration, California State University, San Bernardino, San Bernardino, USA