search query: @freeterm exploration / total: 8
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| Author: | Vassolo, R.S. Anand, J. Folta, T.B. |
| Title: | Non-additivity in portfolios of exploration activities: a real options-based analysis of equity alliances in biotechnology |
| Journal: | Strategic Management Journal
2004 : NOV, VOL. 25:11, p. 1045-1061 |
| Index terms: | bio-technology equity capital |
| Freeterms: | exploration real options |
| Language: | eng |
| Abstract: | Companies invest in exploration-oriented activities to seek competitive advantage and in response to changing environments. Real options formulations represent an emerging strand of thinking on such investments. This article observes that companies often simultaneously invest in multiple exploration projects. Two sources of potential interactions among these real options investments are identified. First, the effects of correlations between outcomes of different options are investigated. Then, the effects of investments that are fungible across project options are analyzed. |
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