Decision support for firm performance by real options analytics

Bernadette Power, Gavin C. Reid

    Research output: Contribution to journalArticlepeer-review

    3 Citations (Scopus)
    1 Downloads (Pure)

    Abstract

    This paper develops a real options decision support tool for raising the performance of the firm. It shows how entrepreneurs can use our intuitive tool quickly to assess the nature and type of action required for improved performance. This exploits our estimated econometric relationship between precipitators of entrepreneurial opportunities, time until exercise, and firm performance. Our 3D chromaticity plots show how staging investments, investment time, and firm performance support entrepreneurial decisions to embed, or to expedite, investments. Speedy entrepreneurial action is securely supported with this tool, without expertise in econometric estimation or in formulae for real options valuation.
    Original languageEnglish
    Pages (from-to)56-64
    Number of pages9
    JournalManagerial and Decision Economics
    Volume39
    Issue number1
    Early online date23 Jul 2017
    DOIs
    Publication statusPublished - Jan 2018

    Keywords

    • Real options
    • Decision support
    • Strategic flexibility
    • Performance

    Fingerprint

    Dive into the research topics of 'Decision support for firm performance by real options analytics'. Together they form a unique fingerprint.

    Cite this