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      • THE ROLE THAT INNOVATION AND STRATEGY PLAYS IN VALUE DRIVER THEORY TO CREATE ENTERPRISE VALUE

        Paul Wendee,Fiona Sussan 글로벌지식마케팅경영학회 2018 Global Marketing Conference Vol.2018 No.07

        The Theory of Value Drivers, or Value Driver Theory (Wendee, 2011), is useful in understanding the value creation process in any enterprise. Innovation and strategy are important components in the value creation process. This research, which is based on Value Driver Theory, explored the role that innovation and strategy have in the value creation process and how they are employed in creating enterprise value. Value Driver Theory was discovered using two different, but compatible, research methodologies. The qualitative study used to discover Value Driver Theory explored the effect of business value drivers on the valuation of businesses in the United States and proposed a theory of value drivers. The Value Driver Theory study used two research methods – grounded theory and the Delphi method - to explore the effect of business value drivers on the valuation of businesses in the U.S. and to propose a theory of value drivers. In addition to a list of 72 individual value drivers, which includes innovation and strategy, the theory of value drivers presents a comprehensive value driver possibilities frontier and value driver chain, both of which are part of and are used to explain the theory of value drivers. The theory of value drivers is comprised of 28 propositions that work in concert with the possibilities frontier, the value driver chain, and other elements that are described in the paper. The Value Driver Theory paper differs from other studies as follows: First, the paper significantly extends the notions, ideas, and concepts from previous studies on value drivers. Second, the paper creates a comprehensive classification scheme for value drivers and has identified many more characteristics and properties of value drivers than previous studies. Third, the study identified 72 specific value drivers through the literature review and the Delphi study. Fourth, the paper consolidates the material from the literature review and the result of the research conducted through the Delphi and grounded theory studies and codifies it into the theory of value drivers. Subsequent to the publication of the paper on Value Driver Theory, new conceptual frameworks and tools have been developed to enhance the usefulness of Value Driver Theory in evaluating the enterprise value creation process. These conceptual frameworks and research tools were explored in the current study in general terms; and particularly as to how they relate to and enhance the use of innovation and strategy in the value creation process.

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