Real options and real value: The role of employee incentives to make specific knowledge investments
Strategic Management Journal, ISSN: 0143-2095, Vol: 29, Issue: 7, Page: 701-721
2008
- 39Citations
- 21Usage
- 154Captures
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Example: if you select the 1-year option for an article published in 2019 and a metric category shows 90%, that means that the article or review is performing better than 90% of the other articles/reviews published in that journal in 2019. If you select the 3-year option for the same article published in 2019 and the metric category shows 90%, that means that the article or review is performing better than 90% of the other articles/reviews published in that journal in 2019, 2018 and 2017.
Citation Benchmarking is provided by Scopus and SciVal and is different from the metrics context provided by PlumX Metrics.
Metrics Details
- Citations39
- Citation Indexes39
- 39
- CrossRef37
- Usage21
- Abstract Views21
- Captures154
- Readers154
- 154
Article Description
Real options reasoning emphasizes the strategic value of making flexible investments in a turbulent environment. Employees' investments in specific human capital are often critical to the success of a real option project, but the very flexibility that allows a firm to change course in response to new information also affects employees ' incentives to make such specific human capital investments. We develop a model of real option investment that explicitly incorporates the role of employee incentives. The model suggests that the effect of investing in a real option project on employee incentives may be positive, further increasing the value of the project, or negative, sometimes more than offsetting the benefit of flexibility and resulting in reduced project value. Therefore, firms and managers should take into consideration the role of employee incentives when applying real options logic to investment decision making. Copyright © 2008 John Wiley & Sons, Ltd.
Bibliographic Details
http://www.scopus.com/inward/record.url?partnerID=HzOxMe3b&scp=45849108374&origin=inward; http://dx.doi.org/10.1002/smj.681; https://onlinelibrary.wiley.com/doi/10.1002/smj.681; https://ink.library.smu.edu.sg/lkcsb_research/3451; https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=4450&context=lkcsb_research; https://dx.doi.org/10.1002/smj.681
Wiley
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