Decision support for firm performance by real options analytics

Bernadette Power, Gavin C. Reid

Research output: Contribution to journalArticle

1 Citation (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

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Real options
Firm performance
Decision support
Entrepreneurial opportunity
Econometric estimation
Entrepreneurs
Option valuation
Exercise
Econometric relationships
Expertise

Cite this

Power, Bernadette ; Reid, Gavin C. / Decision support for firm performance by real options analytics. In: Managerial and Decision Economics. 2018 ; Vol. 39, No. 1. pp. 56-64.
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Decision support for firm performance by real options analytics. / Power, Bernadette; Reid, Gavin C.

In: Managerial and Decision Economics, Vol. 39, No. 1, 01.2018, p. 56-64.

Research output: Contribution to journalArticle

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