Journal Article10.5465/AMR.1997.9711022113
A Real Options Logic for Initiating Technology Positioning Investments
TL;DR: In this paper, the authors extend real options theory to technology positioning projects and specify how the relationship between boundary conditions and uncertainty influences the value of a technology option, as well as the appropriate timing of its exercise, concluding that option value can be amplified by investments to shift boundaries, ideally in ways that are idiosyncratic to the firm.
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Abstract: In this article I extend real options theory to technology positioning projects and specify how the relationship between boundary conditions and uncertainty influences the value of a technology option, as well as the appropriate timing of its exercise. I also take a strategic perspective on uncertainty itself, concluding that option value can be amplified by investments to shift boundaries, ideally in ways that are idiosyncratic to the firm.
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Citations
Emerging Firms And The Allocation Of Control Rights: A Bayesian Approach
Sharon Alvarez,Simon C. Parker +1 more
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Making or breaking the business case of digital transformation initiatives: the key role of learnings
TL;DR: The findings show that the use of the framework can shift managers’ perception regarding the business value of an I4.0 technology implementation, and provides practitioners with an extended view concerning the potential value of digital transformation projects and serves as a conversational tool.
An ANN-based approach of interpreting user-generated comments from social media
T. C. Wong,Hing Kai Chan,Ewelina Lacka +2 more
- 01 Mar 2017
TL;DR: An ANN-based approach to analyse user-generated comments from social media, which employs Artificial Neural Networks to formulate such a relationship, and determine the constitution of rich comments is proposed.
What Is Not A Real Option: Considering Boundaries for the Application of Real Options to Business Strategy
Ron Adner,Daniel A. Levinthal +1 more
TL;DR: In this paper, the authors argue that the greater the extent to which choice sets evolve as a consequence of firms' exploration activities, the less structured the firms' abandonment decisions become and the less distinguishable a real option is from more generic notions of path dependence.
Strategic actions in information technology investment based on real option theory
Yong Jin Kim,G. Lawrence Sanders +1 more
- 01 May 2002
TL;DR: The paper identifies the basic components of IT values and strategic actions and provides the basis for valuing IT investment in terms of economic and real option value and provides IT managers with an easy-to-understand framework to assist in evaluating and justifying IT investments.
References
Firm Resources and Sustained Competitive Advantage
TL;DR: In this article, the authors examined the link between firm resources and sustained competitive advantage and analyzed the potential of several firm resources for generating sustained competitive advantages, including value, rareness, imitability, and substitutability.
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Absorptive capacity: a new perspective on learning and innovation
TL;DR: In this paper, the authors argue that the ability of a firm to recognize the value of new, external information, assimilate it, and apply it to commercial ends is critical to its innovative capabilities.
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Firm Resources and Sustained Competitive Advantage
TL;DR: In this article, a firm is considered to have a sustained competitive advantage when it is implementing a value creating strategy that no competitor is implementing and when these competitors are unable to duplicate the benefits of this strategy.
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