The Role of Management Theories and Tools in Creating Added Value: Insights from the Prefabricated Residential Building Sector

Abstract

The study investigates how management tools impact value creation across different approaches. It identifies key value-creating trends, analyses relevant tools, and provides a framework to support companies in selecting optimal strategies. A unique concept of value creation was developed, incorporating consumer expectations, corporate innovation, and competitiveness. Furthermore, cross-disciplinary concept of added value was developed. The research examined 27 management theories and tools using narrative literature review and thematic analysis, demonstrating how classical models enhance efficiency, while modern approaches prioritise adaptability and employee motivation. Classical management theories primarily improve value creation by optimising organisational processes and increasing productivity. Meanwhile, contemporary approaches focus on fostering innovation, customer engagement, and corporate social responsibility. Management tools play a crucial role in improving organisational efficiency, competitiveness, and sustainability. Techniques such as CRM systems, SWOT analysis, and Porter’s competitive strategies help companies optimise operations, enhance decision-making, and drive strategic growth. Additionally, process improvement methodologies contribute to increased customer satisfaction, innovation capabilities, and strengthened corporate relationships. The study also explores the prefabricated residential building sector, highlighting the widespread adoption of the Lean Construction approach. This method supports efficiency, waste reduction, and sustainability, making it preferred strategy in the industry. The findings conclude that continuous development and integration of management tools are essential for long-term competitiveness. Companies that strategically apply these tools within their governance structures achieve qualitative growth, market advantage, and sustainable business practices. By aligning management strategies with value creation, organisations can enhance adaptability, optimise performance, and reinforce their commitment to innovation and customer satisfaction.