Research
 
Applying an Economic Calculus to Knowledge

ADDING VALUE TO THE PROBLEM-SOLVING PERSPECTIVE

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Publication:

van den Berg H. 2013. Adding Value to the Problem-Solving Perspective. Strategic Management Review: January 2013, Vol. 7, No. 1, pp. 17-27.

Abstract:

This paper expands the problem-solving perspective (PSP) in strategic management by focusing on the assessment of value. By examining the assessment of value permeating the problem-solving perspective (PSP), this paper fills a critical gap in the PSP approach. It begins by describing the allusion to value and recognition of its importance in the PSP literature. Subsequently, a valuable opportunity is defined as one that generates appropriable net value. This is followed by a description of a stylized Value-Price-Cost model to demonstrate the apportionment of an opportunity's value. The paper concludes with the suggestion that the problem-solving perspective in strategic management could be enhanced by extending research into the actual value estimation processes practiced by entrepreneurs, managers, and leaders in the face of great uncertainty.