Knowledge of value creation and sustainable performanceNoorliza Karia
Due to the growing demand for value creation efforts in a firm corporate strategy, there is a need to understand what constitutes value creation and its role in adding value and enabling competitive force and sustainability. This article examines the needs by understanding the conceptual of sustainable performance measurement using value and ethics grounded in literature and Islamic views. The knowledge and insightful understanding about sustainability emerge from multiple perspectives, responsibilities of organizations, religious obligations and ethics. The study discloses that values grounded in the Islamic perspective guide the light to sustainability through justice, balance and moderate. According to halal-based theory, the value creation in halal business model determines the new performance index of sustainable performance measurement. The results indicate the significant value proposition on sustainable performance derived from four P values’ creation on Profit, People, Planet and Product/Service. The constructs and measures of sustainable performance measurements are developed and clarified. The results denote that the role of halal value creation in a firm is an innovative and proactive approach which enhances values of competitiveness and sustainability of firms by generating and maximizing profits (economy), excellence products/services (quality), ensuring the well-being of mankind (society) and the planet (universe).