INVESTIGATING THE EFFECT SHARED VALUE HAS ON THE PERFORMANCE OF LISTED ORGANISATIONS

Abstract

The purpose of this none-experimental quantitative research was to determine the effect shared value has on the performance of listed organisations that are of all sizes and those of which reside within a multitude of South African business sectors. As a result, this research reviewed the various levels of shared value and their respective performance indicators as well as the shared value measurement process put forth by Porter, Hills, Pfitzer, Patscheke, and Hawkins (2012) whilst making use of the various levels of shared value. Despite research being done in relation to the topic, there was little to no academia that looks approaches shared value from a South African quantitative perspective, which also focuses on all three elements of the triple bottom line; people, planet and profit (Reizinger-Ducsai, 2018; Kang, 2020). In addition, the effect of shared value on the overall health of an organisation has yet to be explored. As a result, there was a lack of meaningful data, methodology and measurement tools that specifically look at shared value as an investment and as a competitive strategy (Bergquist & Lindmark, 2016; Servera-Francés, 2019). Bolstered by simple random sampling, a cross-sectional close-ended survey was distributed to 30 Chief Information Officers (CIOs) of listed organisations that partook in shared value initiatives relating to their most recent financial year. As a result, it was statistically proven that the incorporation of shared value can create both business and social values over a longer period of time. These values positively influence profitability, competitiveness, innovation, sustainability, brand equity and shareholder value; they ultimately facilitate improvements in the overall performance of an organisation. Lastly, a return on shared value initiatives may be fully realised through an enhanced level of competitiveness, which occurs over a longer period of time. With shared value currently being in its early stages, it was difficult to gather meaningful data to measure performance. However, this particular research connects the notions of shared value put forth by Kramer and Porter (2011) with important financial and branding indicators. This research serves as an empirical and formal conceptualisation of shared value along with other important performance indicators. This research acts as a guide to South African organisations towards a prosperous future, full of performance opportunities. This research has thus enhanced the field of business and brand decision making, which may guide organisations towards a more sustainable economic position whilst simultaneously enhancing their competitive advantage.