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Value Creation in a 'Non-Producing' Enterprise

Author

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  • Omoregie, Uyiosa

    (Avram Turing)

Abstract

A widely-held proposition is that an enterprise does not create value until it commences production of goods or services for external customers for monetary profit. Another related proposition is that employees in a ‘non-producing’ enterprise, if remunerated, are paid 100 percent above the value of their labour – because the enterprise is not creating value. Counter arguments to these two propositions are presented. The purpose of a firm or business enterprise is discussed and the nature of ‘value’ is elaborated with a critique of the dominant marginal productivity theory of value.

Suggested Citation

  • Omoregie, Uyiosa, 2019. "Value Creation in a 'Non-Producing' Enterprise," SocArXiv h2mv3_v1, Center for Open Science.
    • Handle: RePEc:osf:socarx:h2mv3_v1
    DOI: 10.31219/osf.io/h2mv3_v1
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    References listed on IDEAS

    as
    1. Peter R. Hartley, 2015. "The Future of Long-term LNG Contracts," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    2. Sophia Ruester, 2009. "Changing Contract Structures in the International Liquefied Natural Gas Market : A First Empirical Analysis," Revue d'économie industrielle, De Boeck Université, vol. 0(3), pages 89-112.
    3. Paul Wells, 1987. "Keynes’s Employment Function and the Marginal Productivity of Labor," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 9(4), pages 507-515, July.
    4. John Bates Clark, 1901. "Wages and Interest as Determined by Marginal Productivity," Journal of Political Economy, University of Chicago Press, vol. 10(1), pages 105-105.
    Full references (including those not matched with items on IDEAS)

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