Reconceptualizing Value-Based Management: An Integrated Conceptual Framework
DOI:
https://doi.org/10.26565/2786-4995-2026-3-18Keywords:
value-based management, shareholder value, enterprise value, corporate finance, strategic management, corporate governance, performance measurement, organizational alignment, value drivers, sustainable value creationAbstract
The article explores the conceptual foundations and evolution of Value-Based Management (VBM) as an integrated enterprise-wide philosophy aimed at sustainable long-term value creation. The study systematizes fragmented perspectives from corporate finance, strategic management, corporate governance, performance measurement, stakeholder theory, organizational behavior, and sustainability research, showing that contemporary VBM extends beyond financial techniques or value-based metrics.
Introduction. VBM has become a major paradigm of modern management because it links financial objectives with strategy, governance, organizational capabilities, and stakeholder relationships. However, its interdisciplinary expansion has produced diverse interpretations and blurred conceptual boundaries, necessitating a coherent explanation of its essence and organizational logic.
Problem statement. Despite more than four decades of development, VBM is still defined in different ways as a financial methodology, governance framework, performance measurement system, strategic approach, or management philosophy. This fragmentation complicates theoretical development and limits consistent application in research and practice.
Unresolved aspects of the problem. Although literature examines separate dimensions of VBM in detail, insufficient attention has been paid to integrating its theoretical foundations, definitions, historical evolution, and organizational architecture into a unified conceptual framework.
Purpose of the article. The purpose of this study is to develop an integrated conceptual understanding of VBM by synthesizing multidisciplinary perspectives and reconceptualizing it as an enterprise-wide philosophy for sustainable long-term value creation.
Presentation of the main material. The study applies a structured literature review, thematic analysis, comparative conceptual analysis, and narrative synthesis. The analysis integrates contributions from corporate finance, agency theory, governance, strategic management, performance management, organizational behavior, stakeholder theory, and sustainability research. Based on this synthesis, the paper proposes an integrated VBM definition, identifies its principal organizational components, traces its evolution toward increasing organizational integration, and develops a conceptual framework that links governance, strategy, value drivers, managerial processes, performance management, and organizational alignment.
Conclusions. The study demonstrates that contemporary VBM should be understood as an integrated management philosophy rather than a narrow financial methodology. Its effectiveness depends on coordinating financial and non-financial value drivers, aligning organizational functions, and using performance feedback to learn and adapt. The proposed framework clarifies relationships among VBM’s key components, contributes to the conceptual development of literature, and provides a basis for future empirical research and managerial application.
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