Decision support for firm performance by real options analytics
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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.
Power , B & Reid , G C 2018 , ' Decision support for firm performance by real options analytics ' Managerial and Decision Economics , vol. 39 , no. 1 , pp. 56-64 . https://doi.org/10.1002/mde.2867
Managerial and Decision Economics
Copyright © 2017 John Wiley & Sons, Ltd. This work is made available online in accordance with the publisher’s policies. This is the author created, accepted version manuscript following peer review and may differ slightly from the final published version. The final published version of this work is available at https://doi.org/10.1002/mde.2867
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