Terminal investment timing decisions in a competitive setting with uncertainty using a real option approach

Zheng, Shiyuan; Negenborn, Rudy R.

doi:10.1080/03088839.2016.1274832

Cited by 26 publications

(11 citation statements)

References 36 publications

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“…Dehghan-Eshratabad and Albadvi (2018) used the numerical method of Monte Carlo least squares simulation to determine the percentage of the start-up's ownership of the entrepreneur and venture capitalist based on the results of the simulation. What is more, Zheng and Negenborn (2017) applied the simulation for a Chinese steel cargo terminal investment decision in a competitive setting with uncertainty. Zheng and Negenborn (2017) proposed a least squares Monte Carlo simulation algorithm to find the investing probabilities in the maritime terminal for future years.…”

Section: Towards a Real Option Approach To Estimate An Manda Deal's Synergiesmentioning

confidence: 99%

“…What is more, Zheng and Negenborn (2017) applied the simulation for a Chinese steel cargo terminal investment decision in a competitive setting with uncertainty. Zheng and Negenborn (2017) proposed a least squares Monte Carlo simulation algorithm to find the investing probabilities in the maritime terminal for future years.…”

Section: Towards a Real Option Approach To Estimate An Manda Deal's Synergiesmentioning

confidence: 99%

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Exploring the Link of Real Options Theory with Dynamic Capabilities Framework in Open Innovation-Type Merger and Acquisition Deals

Čirjevskis

2021

JRFM

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Although it is well established that acquisition-based dynamic capabilities have important consequences for merger and acquisition (M&A) processes, direct evidence on how real option applications can measure a dynamic capability-based synergy in open innovation-type M&A deals has been scarce. This study draws from seminal research on real options theory to explore some of these benefits and limits to value a synergy in one recent highly strategic acquisition. To strengthen the identification of causal effects, the paper develops the proposition that justifies the role of dynamic capabilities as antecedents of the success of open innovation-type M&A deals in the ICT industry and demonstrates real options’ application to measure M&A synergies. To test the internal and external validity of the proposition, the explorative case study on Samsung’s acquisition of Harman International Industries was analyzed and interpreted. This study contributes important empirical evidence to bear on the literature on open innovation theory, dynamic capabilities framework, and real options theory.

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Section: Towards a Real Option Approach To Estimate An Manda Deal's Synergiesmentioning

confidence: 99%

Section: Towards a Real Option Approach To Estimate An Manda Deal's Synergiesmentioning

confidence: 99%

Exploring the Link of Real Options Theory with Dynamic Capabilities Framework in Open Innovation-Type Merger and Acquisition Deals

Čirjevskis

2021

JRFM

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“…This simulation method has been recently applied by Dehghan-Eshratabad and Albadvi (2018) to value start-ups by venture capitalists in the first round of financing. Zheng and Negenborn (2017) applied the simulation for a Chinese steel cargo terminal investment decision in a competitive setting with uncertainty. Thus, least squares Monte Carlo simulation-based real options (Longstaff and Schwartz 2001) can overcome some limitations of traditional ROV approaches.…”

Section: Conclusion Limitations and Future Workmentioning

confidence: 99%

Value Maximizing Decisions in the Real Estate Market: Real Options Valuation Approach

Čirjevskis

2021

JRFM

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The real estate market of EU countries has undergone a severe global financial crisis 2008–2009, recovered successfully later, and now experiencing significant uncertainty due to the COVID-19 pandemic event. Significant volatility of the real estate business is once again evident, just as it was following the global financial crisis. The paper aims to provide a case study of a real estate project by giving insight into the Latvian real estate project that had been experiencing similar economic uncertainty, to demonstrate hybrid real options valuation (ROV) method to adapt real estate investments to changing circumstances and to develop the decision-making solution to similar EU real estate problems during the pandemic. The paper provides the “step-by-step” ROV application’s methodology in real estate development projects. The presented methodology is a powerful managerial risk management tool for the executives of similar real estate development projects in the EU countries struggling to make investment decisions in the pandemic and post-pandemic period. Since any estimation includes assumptions, ROV results should be interpreted and perceived as approximations only. The future works can provide robust ROV analyses and interpretations regarding the demand for real estate, showing quantitatively how competition can impact strategic investment decisions.

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“…Concerning this issue, it is important to underline that while in other sectors, social innovation (Volberda, 2014) represents the majority of successful innovationsuch as in most manufacturing sectors -, barriers to collaboration in the port industry make technology-related innovation a predominant element. Thus, current literature often focuses more on the assessment of investments (Zheng and Negenborn, 2017) linked to upgraded facilities capable of improving environmental performance (Cui, 2017) or port congestion (Jian et al, 2017) rather than on the evaluation of innovative processes.…”

Section: Innovation Within the Port Sectormentioning

confidence: 99%

Are the innovation processes in seaport terminal operations successful?

Acciaro

Ferrari

Lam

et al. 2018

Maritime Policy & Management

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The maritime and port sector is widely considered conservative concerning the ability to introduce innovation in respect to other industries. This may be due to the lack of cooperative interactions among the several players involved. It does not mean that innovation does not occur in this industry. Along with some technical also managerial, organizational and cultural innovations take place in the sector. The literature has considered the assessment and effects of the adoption of particular innovation, but still few studies underline the innovation path in a broad sense with a specific focus on terminal operators. The present paper aims at filling this gap through a field analysis grouping together case studies developed in different world regions and examining the adoption path of innovation through a mix of three different techniques (i.e. the H-and I-indexes; a System Innovation Analysis; and a Qualitative Comparative Analysis). Research outcomes underline how, even if no unique recipe for success can be found, specific factors (e.g. a ranking of innovation objectives, coordination among actors and institutions) can influence the achievement of success. The analyses allow suggesting strategic and policy advice that may help link in a better way the innovation drivers with their actual effects.

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Terminal investment timing decisions in a competitive setting with uncertainty using a real option approach

Cited by 26 publications

References 36 publications

Exploring the Link of Real Options Theory with Dynamic Capabilities Framework in Open Innovation-Type Merger and Acquisition Deals

Exploring the Link of Real Options Theory with Dynamic Capabilities Framework in Open Innovation-Type Merger and Acquisition Deals

Value Maximizing Decisions in the Real Estate Market: Real Options Valuation Approach

Are the innovation processes in seaport terminal operations successful?

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