Non - Additivity in Portfolios of Exploration Activities : A Real Options - Based Analysis of Equity Alliances in Biotechnology  

Oleh:

Vassolo, Roberto S. ; Anand, Jaideep ; Folta, Timothy B.

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: Strategic Management Journal vol. 25 no. 11 (Nov. 2004), page 1045-1062.
Topik: biotechnology; real options; fungibility; exploration; alliances

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: SS30.17 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

Lihat Detail Induk

Isi artikel

Firms invest in exploration - oriented activities to seek competitive advantage and in resource to changing environments. Real options formulations represent and emerging strand of thinking on such investments. In this paper we begin with the observation that firms often simultaneously invest in multiple exploration projects. We identify two sources of potential interactions among these real options investments. First, we investifate the effects of correlations between the outcomes in different options. Second, we analyze the effects of investments that are fungible across project options. We show that under different conditions multiple options can be sub - additive (due to redundancies in outcomes) or super - additive (due to fungible inputs). We test the implications of our model with data from the biotech industry and find supporting evidence. Our model and results have some interesting implications for the exploration literature and real options lens.

Opini Anda

Klik untuk menuliskan opini Anda tentang koleksi ini!

Kembali