An Analytical Theory of Project Investment: A Comparison with Real Option Theory

2002 ◽  
Author(s):  
Jing Chen
Keyword(s):  
Real Option ◽  
Analytical Theory ◽  
Project Investment ◽  
Real Option Theory ◽  
Option Theory

Media multiplicity and collaborative innovation with suppliers: evidence from China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ruihong Liu ◽  
Yuanqiong He ◽  
Xiu-Hao Ding ◽  
Jianhong Li
Keyword(s):  
Real Option ◽  
Communication Media ◽  
National Bureau ◽  
Content Type ◽  
Real Option Theory ◽  
Collaborative Innovation ◽  
Using Data ◽  
Option Theory ◽  
Enterprise Survey

PurposeBased on media choice theories and real option theory, this study aims to explore the role of communication media portfolio in achieving collaborative innovation with suppliers.Design/methodology/approachUsing data of the Study of Competitiveness, Technology and Firm Linkages 2002 collected by the World Bank and the Enterprise Survey Organization of the Chinese National Bureau of Statistics, this study employed logit model to test the hypotheses. Moreover, some robustness analyses were conducted.FindingsThis study suggests that media multiplicity increases the probability for a firm to achieve collaborative innovation with suppliers on the basis of real option theory. Furthermore, distance from the suppliers and relationship formality make media multiplicity further important in collaborative innovation with suppliers.Originality/valueThrough investing how communication media portfolio affecting collaborative innovation with suppliers and the contingency factors, this study complements existing studies just concentrating on supplier capabilities, relationships with suppliers and characteristics of supplier network. Moreover, this study contributes in the information system field by exploring the role of media portfolio rather than individual media.

Real Option Approach for the Management of a New Product Development in the Pharmaceutical Sector

2013 ◽  
Vol 746 ◽  
pp. 551-556
Author(s):  
Federica Cucchiella ◽  
Massimo Gastaldi
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Real Option ◽  
New Product ◽  
Pharmaceutical Sector ◽  
The Real ◽  
Investment Projects ◽  
Real Option Theory ◽  
Real Option Approach ◽  
Option Theory

The main scope of this paper is to perform a real options analysis that is often recommended as an emerging valuation technique for high-risk investment projects. The pharmaceutical sector is a sector where the real option can be positively applied to incorporate the flexibility and the risks of the new product development. In this paper the real option theory is applied to a pharmaceutical company that is developing a particular new product. Due to the uncertain nature of the new product development, it can be strategic to evaluate the real option benefits for the investment under analysis.

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