Relational Capital and Company Value Essay

This topic is of particular Interest for those who are Interested In the modern concepts of successful firm performance. I’ll start with the motivation for current research. Second, I’ll be looking at the Issues connected with some basic definitions. After that, I’ll move on to the research framework. Next, I’ll present you the description of the sample for my paper. I’ll end with some predicted outcomes and Limitations of research. It will take about 7 minutes to cover these Issues. There will be a time for questions after my presentation.

Now let’s move on to the first issue of y presentation -? It’s the motivation for research. According to a huge number of papers, strategic intangible resources today are considered as a key to success in the value creation process. Particularly, some authors Introduce the Importance of investments to intangibles for company performance during the global crisis. One of such strategic resources Is relational capital which Is connected with all business processes, particularly with the value creation.

Despite of the importance of collaboration for firm competitiveness, we could not see enough empirical papers hat confirm a positive impact of cooperation on firm outcomes like a company value, especially during crisis period. The paper Is focused on the advantages of Interfere relationships for company value creation. Specifically, the key research question is following: Does relational capital become more relevant for value creation process during the crawls period? Now I think that we need to Identify some basic concepts. The empirical and theoretical studies give different meanings of relational capital.

On this slide you can see only two definitions of this term. In common, In economic iterate the term “capital” refers to a commodity itself used in the production of other goods and services. The adjective “relational” claims that a particular capital consists of some kind of relationships in the production process. It means that we need to find out what is the competitive advantage for firm to participate In different networks. This brings us to the next point of my presentation. The proposed framework of our analysis Is based on the “Inputs-transformation-outputs” chain.

The quantity and quality of relationships are considered as relational capital inputs. The transformation process is Introduced as benefits obtaining from investing in relational capital. Finally, the main output in this research is created value that depends on efficient investment decisions. We define market value added as an indicator for value creation. We believe that this process can be influenced by some direct and proxy indicators of relational capital. Let’s now take a look on my hypotheses. So, the key one Is that Relational Capital becomes more relevant during crisis periods.

It also suggests investigating following points connected with the pacific Influence of RCA proxy-indicators. For hypotheses testifying we used panel data linear analysis for 1693 companies from five European countries covering 71% of GAP in ELL Time period for analysis allows us to analyze three different panels: the prosperity period, the crisis and the recovery. After examining these points, let’s turn to some preliminary results. Our findings suggest that the statistical significant and 1 OFF companies. As it was expected, some differences in significance of the inputs during the crisis period were revealed.

Particularly, cooperation shows the best results during the crisis and the recovery period. Surprisingly, international penetration and location in agglomeration appear to be statistically insignificant for all time periods. Nevertheless, the presence of a nearby top-university is positively correlated with the outcomes. Although the research has reached its aims, there were some unavoidable limitations. First of all, the results should be interpreted with the certain amount of caution mainly because of the general lack of the objects involved in the analysis.

Secondly, there are many gaps in our theoretical understanding of the processes described in this paper due to the lack of prior research studies on the topic. This means that we need to conduct future researches to prove gained results. One more significant limitation of the research is the difficulty with generalizing the results. That is why it would be interesting to conduct the same analysis for other economies trying to find out the features of an environment that can influence on the results. But we should end on optimistic note.

The statistical outcomes of our search can be of value for conducting comparative analysis with the relationships presented in this paper. We consider also that our findings could be taking into account in the process of investment-making decisions as we highlight the importance of investments in relational capital inputs for driving company value. We also believe that one of the most fruitful directions for the further research could be an investigation of particular relations between companies and their stakeholders with the help of the case study based on interviews with top-management of those companies.