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Creating Shareholder Value Through Supply Chain Management Issue number 16 vol.9 n°1 - 2008 Creating and Sharing Value through SCM Purchase this article : 5 € Abstract: It is critical for managers to identify the supply chain initiatives that create the most shareholder value. This paper presents a practical, five-step, framework to help managers address this need, as well as link supply chain strategies and investments to shareholder value by utilizing the Economic Value Added (EVA) con-cept. EVA can be affected by four major value drivers: revenue growth, cost efficiency, fixed asset utiliza-tion, and cash-to-cash cycle time. We conducted a large-scale empirical study in Europe that used the cash-to-cash cycle time as the key metric. The results indicate that although certain companies and industries were able to reduce their cash-to-cash cycle times, the overall improvements were only marginal. Our results show this may be because the most influential party in the supply chain optimizes its cash-to-cash cycle time performance at the expense of other supply chain partners, not fulfilling the full financial potential of supply chain management. Authors: Heimo Losbichler, Markus Rothboeck, University of Applied Science Steyr, Austria Farzad Mahmoodi, Ph.D. School of Business, Clarkson University Keywords: Supply Chain Management shareholder Value Financial Performance Cash-to-cash cycle time