A Study on the Effect of CSV on the Performance of Partner Companies: An Analysis of Artificial Neural Networks

Abstract

This study investigates the effectiveness of creating shared value (CSV), which is attracting attention as a new value creation and an element that enables continuous management of a company or an organization. The purpose of this study is to identify the effects of economic and social values, which are sub-factors of shared value creation (CSV), on the performance of partner companies. To this end, a total of 246 cases collected after surveys were conducted for 50 small and medium-sized companies’ employees and practical personnel in the aviation complex. Based on the validity and reliability of all questionnaires applied to the variables in this study, the artificial neural networks (ANN) was used to test the hypotheses. The ANN, a new analysis method, shows the nonlinear relationship between variables rather than linear regression analysis model or a structural equation model that represents simple linear results. The results showed that economic value, one of the sub-factors of the creation of shared values, has a positive effect on the performance of partner companies. In addition, social value, the other sub-factor of the creation of shared values, was found to have a positive effect on the performance of partner companies. The results of this study demonstrated a non-linear relationship between two related variables. Therefore, the academic practical implications are very meaningful.