A decision analytic approach for technology portfolio prioritization: aviation safety applications

Sharma, Varun; Coit, David W.; Öztekin, Ahmet; Luxhøj, James T.

doi:10.1080/13669870902970236

Cited by 3 publications

(1 citation statement)

References 3 publications

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“…Because the patent literature has treated patent stocks as largely homogenous, characterizing them using structural features like size/novelty or market reach, it has ignored risk assessments that are an important topic in technology management literature (Crawford 1987, Urban/Hauser 1993. Following insights from portfolio theory, the main proposition is that firms should not regard their technologies in isolation, but as a portfolio (Kfir 2000, Lin and Chen 2005, Sharma et al 2009, Wooje et al 2013. The decisive aspect of the portfolio idea is that it may act as a "hedge" against risks, because even if one technology fails, another in the portfolio might succeed (Abernathy/Rosenbloom, 1968, Klingebiel andRammer, 2014).…”

Section: Risk Of the Technology Basementioning

confidence: 99%

Managing portfolio risk in strategic technology management: evidence from a panel data-set of the world's largest R&D performers

Neuhäusler

Schubert

Frietsch

et al. 2015

Economics of Innovation and New Technology

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In this article we analyze the impact of firms' technology bases on their financial performance. By taking a strategic perspective of technology, we argue that it is not sufficient to analyze only the size or novelty/quality of the technology base as technology bases can best be understood as portfolios of individual technologies. In such a framework, risk consideration should be taken into account. More specifically, we argue that increasing technological breadth can serve as a hedge against the inherent uncertainties of developing and commercializing technology, in particular when the technology base is very large or novel.We also propose that technology has higher impacts on financial performance for firms with broader technology portfolios. A similar argument proposes that technological breadth can offset the increased risks of addressing foreign markets. We test our hypotheses using an international panel dataset of large R&D-performing firms. Our results suggest that broad technology portfolios can indeed serve as a hedge against technological and commercialization risks. JEL codes: O32, O34Abstract: In this article we analyze the impact of firms' technology bases on their financial performance. By taking a strategic perspective of technology, we argue that it is not sufficient to analyze only the size or novelty/quality of the technology base as technology bases can best be understood as portfolios of individual technologies. In such a framework, risk consideration should be taken into account. More specifically, we argue that increasing technological breadth can serve as a hedge against the inherent uncertainties of developing and commercializing technology, in particular when the technology base is very large or novel. We also propose that technology has higher impacts on financial performance for firms with broader technology portfolios. A similar argument proposes that technological breadth can offset the increased risks of addressing foreign markets. We test our hypotheses using an international panel dataset of large R&D-performing firms. Our results suggest that broad technology portfolios can indeed serve as a hedge against technological and commercialization risks.

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Section: Risk Of the Technology Basementioning

confidence: 99%

Managing portfolio risk in strategic technology management: evidence from a panel data-set of the world's largest R&D performers

Neuhäusler

Schubert

Frietsch

et al. 2015

Economics of Innovation and New Technology

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The effect of probability on risk perception and risk preference in decision making

Guopan

2010

2010 International Conference on Education and Management Technology

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Assessing productivity to address safety concerns for information technology and promoting global standardization within aviation practices

Brown

Gilchrist

2016

gjit

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Comparing these concepts with the usage of productivity assessment current design standards in implementing technological systems create concerns in safety performances [5]. The technology developmental risk was a concern in the Wright Brother era and the approach in implementing best solution practices based on simulating and testing standards to meet the goals in today’s operation is still an issue [4]. Effective modeling in promoting environmental changes for operational practices can present a risk concern in the developmental approach if productivity is not assessed [1]. Steps are needed to be taken to improve the environmental factors in the business efforts of promoting alternative energy; nonetheless, the long-term effects of not prioritizing the development standards on the global level may cause risk concerns in assessing aviation practice [1]. Realizing the sensitivity of the system development and the tradeoffs in implementing effective practices can also create awareness in the long-term efforts of environmental factors and its impact on operational cost improvements [10]. The ethical standards for human factors to improve the quality of people lives in addressing the challenges faced may be a concern going into the 21st century [7]. The tradeoffs of prioritizing can present both pros and cons; however, developmental practices are risky without modeling long-term impact and exploring different applications in adopting business practices [6]. Flexibility is an importance aspect in evaluating the productivity of long-term practices while using modern technology [6]. The productivity assessment impact in future implications and it influences to integrate traditional technology within the modern environment. Keywords: IT, aviation practices, promoting

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A decision analytic approach for technology portfolio prioritization: aviation safety applications

Cited by 3 publications

References 3 publications

Managing portfolio risk in strategic technology management: evidence from a panel data-set of the world's largest R&D performers

Managing portfolio risk in strategic technology management: evidence from a panel data-set of the world's largest R&D performers

The effect of probability on risk perception and risk preference in decision making

Assessing productivity to address safety concerns for information technology and promoting global standardization within aviation practices

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