Valuing technology, setting up strategy: real option and SMEs
Many businesses are actively managing their strategy to improve corporate activities and portfolios performance but the practice is sadly uncommon in the case of small- and medium-sized enterprises (SMEs). The need of strategic practices is very crucial to survive; yet with limited resources and exp...
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| Format: | Conference or Workshop Item |
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2015
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| _version_ | 1796861191303200768 |
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| author | Muharam, Farrah Merlinda Tarrazon, Maria Antonia Mohamad Salleh, Zulkifli |
| author_facet | Muharam, Farrah Merlinda Tarrazon, Maria Antonia Mohamad Salleh, Zulkifli |
| author_sort | Muharam, Farrah Merlinda |
| collection | ePrints |
| description | Many businesses are actively managing their strategy to improve corporate activities and portfolios performance but the practice is sadly uncommon in the case of small- and medium-sized enterprises (SMEs). The need of strategic practices is very crucial to survive; yet with limited resources and expertise, SMEs are at loose end. The condition is worsened by current strategic practice that fails to incorporate uncertainty and flexibility. With the application of Real Option Valuation (ROV) among large firms, this paper suggests an enhancement to SME’s current strategic planning. ROV applied with Option Metrics Space (OMS), allows managers to obtain quantitative and qualitative information on two main investment dilemmas, to invest or not to invest, and when, and at the same time match the decision to their limited resources and capacity. Seen as a better approach, incorporation of ROV into strategic planning values proposed project as a multi-stage operation, dynamically assessed over time rather than broken into several pieces. As a result, SMEs are able to decide on investments that are worth undertaken through an improved strategic planning practice. |
| first_indexed | 2024-03-05T19:52:37Z |
| format | Conference or Workshop Item |
| id | utm.eprints-62015 |
| institution | Universiti Teknologi Malaysia - ePrints |
| last_indexed | 2024-03-05T19:52:37Z |
| publishDate | 2015 |
| record_format | dspace |
| spelling | utm.eprints-620152017-08-14T03:41:14Z http://eprints.utm.my/62015/ Valuing technology, setting up strategy: real option and SMEs Muharam, Farrah Merlinda Tarrazon, Maria Antonia Mohamad Salleh, Zulkifli T55-55.3 Industrial Safety. Industrial Accident Prevention Many businesses are actively managing their strategy to improve corporate activities and portfolios performance but the practice is sadly uncommon in the case of small- and medium-sized enterprises (SMEs). The need of strategic practices is very crucial to survive; yet with limited resources and expertise, SMEs are at loose end. The condition is worsened by current strategic practice that fails to incorporate uncertainty and flexibility. With the application of Real Option Valuation (ROV) among large firms, this paper suggests an enhancement to SME’s current strategic planning. ROV applied with Option Metrics Space (OMS), allows managers to obtain quantitative and qualitative information on two main investment dilemmas, to invest or not to invest, and when, and at the same time match the decision to their limited resources and capacity. Seen as a better approach, incorporation of ROV into strategic planning values proposed project as a multi-stage operation, dynamically assessed over time rather than broken into several pieces. As a result, SMEs are able to decide on investments that are worth undertaken through an improved strategic planning practice. 2015 Conference or Workshop Item PeerReviewed Muharam, Farrah Merlinda and Tarrazon, Maria Antonia and Mohamad Salleh, Zulkifli (2015) Valuing technology, setting up strategy: real option and SMEs. In: Malaysian Technical Universities Conference on Engineering and Technology 2015 (MUCET), 11-13 Oct, 2015, Johor Bahru, Johor. http://www.mucet.net/2015/?q=node/17 |
| spellingShingle | T55-55.3 Industrial Safety. Industrial Accident Prevention Muharam, Farrah Merlinda Tarrazon, Maria Antonia Mohamad Salleh, Zulkifli Valuing technology, setting up strategy: real option and SMEs |
| title | Valuing technology, setting up strategy: real option and SMEs |
| title_full | Valuing technology, setting up strategy: real option and SMEs |
| title_fullStr | Valuing technology, setting up strategy: real option and SMEs |
| title_full_unstemmed | Valuing technology, setting up strategy: real option and SMEs |
| title_short | Valuing technology, setting up strategy: real option and SMEs |
| title_sort | valuing technology setting up strategy real option and smes |
| topic | T55-55.3 Industrial Safety. Industrial Accident Prevention |
| work_keys_str_mv | AT muharamfarrahmerlinda valuingtechnologysettingupstrategyrealoptionandsmes AT tarrazonmariaantonia valuingtechnologysettingupstrategyrealoptionandsmes AT mohamadsallehzulkifli valuingtechnologysettingupstrategyrealoptionandsmes |