Contribution of the Management System and the Institutional Framework to the Efficiency of Values-Based Management

The present research is an attempt to determine the contribution of the management system and the institutional framework to the efficiency of values-based management (VBM). The interest in the question of efficiency stems from the fact that to grasp this founding principle of management is essential for any effort of evaluation and valuation accompanying the adoption of any type of management. Our choice of an organizational variable as well as an environmental one to explain the phenomenon of efficiency, intends to cover sources of influence, both internal and external to the organization. As such, this study addresses the following question: What is the effect of the management system and the institutional framework on the efficiency of values-based management? The main theoretical and empirical results reveal that these two variables contribute jointly to the efficiency of VBM. More precisely, the empirical results obtained, in particular through the canonical correlation analysis, specify that both variables influence the efficiency of VBM in different degrees, with the effect of the management system being superior. The latter explains the efficiency of the management by the values at a rate of 52.59 %, whereas the institutional framework explains it only up to 25.15 %.