[go: up one dir, main page]
More Web Proxy on the site http://driver.im/
IDEAS home Printed from https://ideas.repec.org/p/wpa/wuwpfi/0409054.html
   My bibliography  Save this paper

How do real options come into existence? A step toward an option- based theory of the firm

Author

Listed:
  • Thierry BURGER-HELMCHEN

    (BETA)

Abstract
To be relevant to a firm a real option needs to fit into a theory of the firm explaining its existence, exercise conditions and value. We make a step toward an option based-theory of the firm by describing the emergence of a firm’s options and the strategic building of new competences for exercising these options. We explain the creation of a real option as an entrepreneurial process which transform inventive ideas into profitable innovation. The subsequent development of competence necessary to exercise the option gives boundaries, based on theories of the firm, for the often overoptimistic real option evaluation.

Suggested Citation

  • Thierry BURGER-HELMCHEN, 2004. "How do real options come into existence? A step toward an option- based theory of the firm," Finance 0409054, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpfi:0409054
    Note: Type of Document - pdf; pages: 30
    as

    Download full text from publisher

    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/fin/papers/0409/0409054.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bruce Kogut & Udo Zander, 1992. "Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology," Organization Science, INFORMS, vol. 3(3), pages 383-397, August.
    2. Bruce Kogut & Nalin Kulatilaka, 2001. "Capabilities as Real Options," Organization Science, INFORMS, vol. 12(6), pages 744-758, December.
    3. Claude Henry, 1974. "Option Values in the Economics of Irreplaceable Assets," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(5), pages 89-104.
    4. Foss, Nicolai J. (ed.), 1997. "Resources, Firms, and Strategies: A Reader in the Resource-Based Perspective," OUP Catalogue, Oxford University Press, number 9780198781790.
    5. Ash Amin & Patrick Cohendet, 2004. "Architectures of knowledge : Firms, capabilities, and communities," Post-Print hal-00279605, HAL.
    6. Alfred D. Chandler, 1969. "Strategy and Structure: Chapters in the History of the American Industrial Enterprise," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262530090, April.
    7. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    8. Nicolai J. Foss, 1999. "The Use of Knowledge in Firms," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 155(3), pages 458-458, September.
    9. Patrick Cohendet & Patrick Llerena, 2003. "Routines and incentives: the role of communities in the firm," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 12(2), pages 271-297, April.
    10. John Seely Brown & Paul Duguid, 1991. "Organizational Learning and Communities-of-Practice: Toward a Unified View of Working, Learning, and Innovation," Organization Science, INFORMS, vol. 2(1), pages 40-57, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thierry Burger-Helmchen, 2007. "Justifying the Origin of Real Options and their Difficult Evaluation in Strategic Management," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 59(4), pages 387-405, October.
    2. Heimeriks, K. & Duysters, G.M. & Vanhaverbeke, W.P.M., 2004. "The evolution of alliance capabilities," Working Papers 04.20, Eindhoven Center for Innovation Studies.
    3. Biggiero, Lucio, 2007. "Organizations as congitive systems :what do they process and deliver?," MPRA Paper 3089, University Library of Munich, Germany.
    4. Krug, B. & Reinmoeller, P., 2003. "The Hidden Cost of Ubiquity: Globalisation and Terrorism," ERIM Report Series Research in Management ERS-2003-062-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    5. Caccamo, Marta & Pittino, Daniel & Tell, Fredrik, 2023. "Boundary objects, knowledge integration, and innovation management: A systematic review of the literature," Technovation, Elsevier, vol. 122(C).
    6. Pettus, Michael L. & Kor, Yasemin Y. & Mahoney, Joseph T., 2007. "A Theory of Change in Turbulent Environments: The Sequencing of Dynamic Capabilities Following Industry Deregulation," Working Papers 07-0100, University of Illinois at Urbana-Champaign, College of Business.
    7. Iman Seoudi & Matthias Huehn & Bo Carlsson, 2008. "Penrose Revisited: A Re-Appraisal of the Resource Perspective," Working Papers 14, The German University in Cairo, Faculty of Management Technology.
    8. Mehmet Ali Köseoglu & John A. Parnell & Melissa Yan Yee Yick, 2021. "Identifying influential studies and maturity level in intellectual structure of fields: evidence from strategic management," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(2), pages 1271-1309, February.
    9. Renzl, Birgit, 2008. "Trust in management and knowledge sharing: The mediating effects of fear and knowledge documentation," Omega, Elsevier, vol. 36(2), pages 206-220, April.
    10. Camisón, César & Forés, Beatriz, 2011. "Knowledge creation and absorptive capacity: The effect of intra-district shared competences," Scandinavian Journal of Management, Elsevier, vol. 27(1), pages 66-86, March.
    11. Jan-Erik Vahlne & Jan Johanson, 2017. "From internationalization to evolution: The Uppsala model at 40 years," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(9), pages 1087-1102, December.
    12. Lam, Alice, 2004. "Organizational Innovation," MPRA Paper 11539, University Library of Munich, Germany.
    13. Maurizio Zollo, 2009. "Superstitious Learning with Rare Strategic Decisions: Theory and Evidence from Corporate Acquisitions," Organization Science, INFORMS, vol. 20(5), pages 894-908, October.
    14. Strambach Simone & Klement Benjamin, 2013. "Exploring plasticity in the development path of the automotive industry in Baden-Württemberg: the role of combinatorial knowledge dynamics," ZFW – Advances in Economic Geography, De Gruyter, vol. 57(1-2), pages 67-82, October.
    15. Filipe M. Santos & Kathleen M. Eisenhardt, 2005. "Organizational Boundaries and Theories of Organization," Organization Science, INFORMS, vol. 16(5), pages 491-508, October.
    16. Sachs Sybille, 2001. "Edith T. Penrose und ihr Einfluss auf die moderne „theory of the firm“," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 221(1), pages 115-120, February.
    17. Foroudi, Pantea & Gupta, Suraksha & Patel, Parth & Batsakis, Georgios & Vaatanen, Juha & Czinkota, Michael, 2023. "The effect of home country characteristics on the internationalization of EMNEs: The moderating role of knowledge stock," International Business Review, Elsevier, vol. 32(2).
    18. Yoruk, Deniz E., 2019. "Dynamics of firm-level upgrading and the role of learning in networks in emerging markets," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 341-369.
    19. Haradhan Kumar Mohajan, 2016. "Knowledge is an Essential Element at Present World," International Journal of Publication and Social Studies, Asian Economic and Social Society, vol. 1(1), pages 31-53.
    20. Harbir Singh & Maurizio Zollo, 1998. "The Impact of Knowledge Codification, Experience Trajectories and Integration Strategies on the Performance of Corporate Acquisitions," Center for Financial Institutions Working Papers 98-24, Wharton School Center for Financial Institutions, University of Pennsylvania.

    More about this item

    Keywords

    Real Option; Theory of the Firm; Capabilities;
    All these keywords.

    JEL classification:

    • G - Financial Economics

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpfi:0409054. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: EconWPA (email available below). General contact details of provider: https://econwpa.ub.uni-muenchen.de .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.