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Products, services, and other value creation outcomes must create added value (benefit) for their target groups. Target groups are the key addressees of organizational value creation. They include certain customer groups (for companies), citizens (for public administration), students and research [24] partners (for universities), parties to a conflict (in courts of law), or patients (in hospitals). Thus, an outcome-centered understanding of value creation focuses primarily on how organizational value creation impacts target groups. Examples include material products (vehicles, computers, household items, textiles, semiconductor components, agricultural products, books, etc.) or immaterial services (financial services, overnight accommodation, educational services, etc.). We call target group-oriented value creation primary value creation.

This refers to those impacts of an organization’s activities that are related to its basic purpose, i.e., its core function. For example, an economic organization (enterprise) aims to satisfy customer needs, a political organization (e.g., party) seeks to form majorities, in order to meet public concerns, and a scientific organization (e.g., university) strives to generate new knowledge.

At the same time, organizations achieve much that extends beyond primary value creation and represents additional value creation: They create jobs, pay taxes, form a place of belonging, help establish meaningful employee identity, contribute substantially to occupational pension funds, and serve the common good. Thus, today’s organizations, as stabilizing institutions, are important pillars of modern society.