Value Creation: an Integrative Approach to Improving Organizational and Economic Performance

Abstract

The established principles for effectively managing economic resources can be described as an integration of concepts connected with: management theory, organizational theory, social psychology, ethics, social theory, economics, social economics, and political economy. In this respect the fundamental concepts of management, organizational behavior, and the basis of the principles of wealth generation clearly involve theorizing the interface between individuals, organizations, and economies. This article argues that the founding principles for managing wealth developed to become the basis of 21^st century perspectives on market transactions and recently evolved into a viable strategy for improving both organizational and economic performance. In fact, as this article argues, as an outcome of the endeavor to keep up with the innovative demands of the technological age organizational specialists developed a strategy for integrating the material aspect of human interests with higher order human values which is resulting in more profitable organizations, more satisfied customers, and better performing economies.  Yet, in spite of the obvious increase in both shareholder and stakeholder benefits there is inadequate explanation of the theoretical framework of the value creation theory.  This article fills that void by explicating the theoretical aspect of the co-creation of value strategy.