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An International Meeting of American Accounting
Association
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Value Based Management – an issue for Small and Medium Enterprises? Evidence from an empirical study on German SMEs |
Klaus Flacke
University of Münster
Andreas Hoffjan
HEC Paris
Jan O. Piontkowski
WHU - Otto Beisheim School Of Management
Abstract: As a management approach for SMEs, Value Based Management (VBM) has barely been researched. This study investigates whether German SMEs have a tendency to be value-oriented and analyzes factors influencing the implementation and application of VBM. In order to analyze VBM, we derive three sub-criteria (VB-Management Accounting, VB-Communication, and VB-Leadership) that constitute our understanding of VBM. Furthermore we adapt a contingency approach using a questionnaire-based data set of 159 samples. Applying cluster analysis as well as ordinal regression, we test external and internal structural variables such as size, entrepreneurial characteristics, or environmental dynamics for their effect on the sub-criteria of VBM. While, in general, the results show limited use of VBM in SMEs, there is evidence that there are structural variables such as the use of external advice by consultants or the employment of non-stakeholding management staff, that enhance the value orientation of SMEs.