Abstract
Contributing to the first research objective, the theoretical background first familiarises the reader with the concepts and key characteristics of LM and VBM. While reviewing these two approaches, it is found that, surprisingly, neither the term “value” nor “value driver” is clearly defined. Therefore, a new definition of both terms is presented that captures and harmonises both areas.
Serving the second objective, a systematic assessment of LM literature against the six-step normative VBM framework of Ittner and Larcker (Journal of Accounting and Economics 32(1/3), 653, 2001) is conducted in order to determine lean’s compatibility with VBM based on existing knowledge.
Finally, this appraisal addresses the study’s third objective, as it is found that although LM is overall highly capable of contributing to the normative VBM demands, it lacks a satisfactory lean value driver model and related indicators to be used within the value creation process in a lean system.
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Notes
- 1.
- 2.
An annual planning table is created for any of the vital objectives. Hence, there will typically be multiple annual planning tables.
- 3.
- 4.
This narrow assumption disregards preferences, e.g., regarding the potential risk related to the investment, as well as social responsibility aspects, such as not to invest in arms industries.
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Kaufmann, G. (2020). Theoretical Background of Lean and Value-Based Management. In: Aligning Lean and Value-based Management. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-030-38467-8_2
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