Appropriate timing for SMEs to introduce an Internet-based online channel under uncertain operating costs: a real options analysis

Shi, Ping; Yan, Bo; Zhao, Jun

doi:10.1007/s10660-018-9311-1

Cited by 5 publications

(3 citation statements)

References 41 publications

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“…Although many contributions have been made in the assessment of investment projects through real options [2,7,12], the investment in digital technologies coming from Industry 4.0 pose new challenges, with a need to reevaluate the suitability of this approach and their strategic implications. The present research is in line with the reports assuring that changes in the aerospace and automotive industry must be done cautiously as the implications can be very significant [23,24].…”

Section: Discussionmentioning

confidence: 99%

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Assessing Blockchain Investments through the Learning Option: An Application to the Automotive and Aerospace Industry

2020

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Blockchain technology has demonstrated huge potential in providing simplicity and efficiency for different industries. However, its implementation in the automotive and aerospace industry is quite slow because of its difficulty to show value creation. Real option methodology, specifically the learning option, is an assessment tool which fits the conditions under which investment in blockchain technology is carried out. Thus, its application can help managers to wisely invest in this technology despite the complexity of this industry. This study offers a suitable tool to assess the strategic value of an investment in blockchain technology from a conservative position by using the real option approach, particularly the learning option. Specifically, this paper provides the mathematical expression to obtain the value of a project which includes the learning option for n periods. Likewise, it tries to raise awareness among managers of the importance to gather relevant information before making irreversible decisions. The results show that, despite the high profitability of the analyzed sector and the strategic value added by the learning option to the investment, the value of this option remains constant over the project lifespan. This indicates that the blockchain investment has to be implemented as soon as possible given that it is a highly profitable project whose value increases very slowly by waiting to get more new information. In this way, the immediate investment in blockchain technology in the automotive and aerospace industry is recommended to reap the competitive advantages offered by digital technologies.

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Section: Discussionmentioning

confidence: 99%

“…This instrument allows managers to add strategic value to firms and helps them to make more informed decisions in the future. Therefore, an option-based approach is a representation of the decision process as managers can decide to invest in digital technologies or just to wait until a more favorable scenario [10][11][12].…”

Section: Introductionmentioning

confidence: 99%

Assessing Blockchain Investments through the Learning Option: An Application to the Automotive and Aerospace Industry

2020

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“…Accordingly, this paper outlines the issues that need to address before moving from one stage to the next. For their part, Shi et al [ 32 ] discussed models that provide practical guidance to SMEs on when to adopt e-business while facing uncertain operating costs. However, this work does not emphasize SME strategies to address barriers to e-business adoption.…”

Section: Literature Reviewmentioning

confidence: 99%

Mobile application e-grocery retail adoption challenges and coping strategies: a South African small and medium enterprises’ perspective

Mkansi

Nsakanda

2023

Electron Commer Res

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This paper explores how small and medium-sized e-grocery mobile application retailers evolving within the geographical context of South Africa and operating in the urban, township, and rural areas respond to theoretically and emerging field-based e-business and e-grocery adoption challenges, respectively. The study used semi-structured qualitative interviews to explore the coping strategies of e-grocery mobile application retailers to mitigate technological, organizational, and environmental (TOE) adoption challenges. The significance of small grocery adoption strategies related to context informs e-grocery adoption from the evidence generated in other small e-grocers and for the superior grade of TOE (or theoretical) knowledge sought from the inevitable evolving mobile application and digital grocery markets. The findings reveal that specialist skills and unified team production are crucial conduits for lowering the TOE barriers to e-business and e-grocery adoption. They also reveal the interconnected resource orchestration, shared value, and social inclusion strategies used to mitigate various e-business and e-grocery challenges.

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Reselling or drop shipping: Strategic analysis of E-commerce dual-channel structures

Zheng

Liu

2019

Electron Commer Res

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Appropriate timing for SMEs to introduce an Internet-based online channel under uncertain operating costs: a real options analysis

Cited by 5 publications

References 41 publications

Assessing Blockchain Investments through the Learning Option: An Application to the Automotive and Aerospace Industry

Assessing Blockchain Investments through the Learning Option: An Application to the Automotive and Aerospace Industry

Mobile application e-grocery retail adoption challenges and coping strategies: a South African small and medium enterprises’ perspective

Reselling or drop shipping: Strategic analysis of E-commerce dual-channel structures

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