Abstract
The value based management approaches aim primarily at listed major corporations. Through the equity cost rate they are linked to the capital market theory (CAPM) and portfolio theory. Medium-sized enterprises in the sense of the present research are never listed on stock markets, but are owned by an entrepreneur, a few companies or, as the case may be, further family members as well. Considering the very low application rate of value based concepts in SMEs, despite their large macro economical importance and the significant untapped potential, there is a clear demand in theory and praxis for a holistic integrated framework that better considers the constitutive SME characteristics and identified requirements regarding the implementation in medium-sized enterprises (SMEs). The research method applied to develop such a framework is on one side exploratory, i.e. logic-deductive. The theoretical basis constitutes the shareholder value approach, the stakeholder theory, the intellectual capital management theory, as well as the business economics of SMEs. On the other side, to fulfill the practical objective the research project is based on a second pillar. Within the scope of the dissertation, an empirical case study of a typical medium-sized enterprise is conducted. The case study findings affirm the practical relevance and value adding, the applicability and reliability of the implemented framework. Furthermore, concrete practical recommendations are given for the implementation of the developed risk and value based management framework in SMEs. The risk and value based management framework, considering the normative, methodological and instrumental perspectives, brings together elements of shareholder theory, stakeholder theory and intellectual capital concepts applied to the actual findings in SME research. This has significant practical implications for managers and entrepreneurs. Management and entrepreneurs can break down the overall target of value creation to single intellectual capital (IC) or stakeholder related events. Such a value-oriented management concept provides a basis for top management and entrepreneurs, and serves as starting point for a differentiated operational control and early warning system that identifies and quantifies value and risk drivers for managing employee, customer and supplier capital, or from an IC perspective, structural, relational and human capital, all in a value-oriented and quantitative way. Additionally, as the premises, i.e. the conceptual underpinnings of valuation, have radically changed, the impact on valuation practice is consequently significant, as it opens the possibility for valuation practitioners to develop corresponding specialised valuation approaches, e.g. focusing on IC or stakeholder valuation, not only for (unlisted) SMEs.