Managing human assets in an uncertain world: applying real options theory to HRM

Bhattacharya, Mousumi; Wright, Patrick M.

doi:10.1080/09585190500120574

Cited by 96 publications

(93 citation statements)

References 37 publications

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“…For the period between 1999 and 2015, we found that this method has been applied to many cases and in many different fields, from the evaluation of construction projects (Barton & Lawryshyn, 2011;Ford et al, 2002;Garg & Kumar, 2014;Jiao et al, 2007;Oppenheimer, 2002;Parthasarathy & Madhumathi, 2010;Sewalk & Dai, 2014); investments in R&D (Kumaraswamy, 1996;Ming-Cheng & Yen, 2007), in particular those by pharmaceutical companies (Gunther McGrath and Nerkar, 2004;Hartmann & Assan, 2006); the evaluation of IT (information technology) projects (Benaroch, 2002;Fichman, 2004); insurance portfolio strategies; customer relationship management (Maklan et al, 2005); the management and evaluation of intagible assets (Bhattacharya & Wright, 2005, Faiferlick et al 2004, Park et al, 2013; and the assessment of bonds and derivatives (Driffill et al, 2013;Ericsson & Reneby, 2005;Fabozzi et al, 2012, Pyo, 2008Ren-Raw et al, 2002;Singh, 2014, Tompkins, 2001). …”

Section: Resultsmentioning

confidence: 99%

Defining the Black and Scholes approach: a first systematic literature review

2015

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Purpose: The aim of the paper is to investigate the Black and Scholes model by providing an updated framework of the international literature on the topic, within the field of real option. The purpose of the research is to identify the relevant literature between 1999 and 2015, together with the most important perspectives on the Black and Scholes model as analysed by scholars, in order to provide a useful support to the academic community in their studies. The investigation was carried out only for its economic and corporate insights, with the objective of establishing the strong and weak points highlighted in the defined framework. Methodology: The method used for the research was based on qualitative approach. International literature on the topic was examined through a research protocol. The research was developed by the identification of four keywords (Real Options Valuation, Real Options Assessment, Black and Scholes, Real Options Pricing) and searching them in two databases, with the purpose of obtaining a wide range of scientific contribution for the analysis. Originality/value: The paper presents an accurate review of the scientific contribution on the topic of the Black and Scholes model; it defines the fields of application, opportunities offered and issues relating to its application, in order to clarify the strong and weak points of the model. Practical implications: The Black and Scholes model of the 1970s is acknowledged to be the most widely used model for evaluating options. Our study shows that this method has been adopted by decision-makers not only for evaluating options but also in other fields.

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Section: Resultsmentioning

confidence: 99%

Defining the Black and Scholes approach: a first systematic literature review

2015

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“…In fact, some of them literally say that it is a 'differential factor' for corporations, this is, a competitive advantage factor (Den Hartog and Verburg, 2004;Bhattacharya and Wright, 2005;Hiltrop, 2006;Clardy, 2008). Thus, 22 companies state the guidelines in the human resources policy explicitly and it must additionally be remembered that 8 firms identify human resources development as one of the key corporate strategies.…”

Section: Human Resources Management Principlesmentioning

confidence: 99%

Web pages as a tool for a strategic description of the Spanish largest firms

Llopis

González

Gascó

2010

Information Processing & Management

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Abstract:The need for this study lies in the assumption that an in-depth examination of the map site of a firm that has a well-developed website can provide patterns about its corporate strategy through all the elements surrounding the organisation, and even a primary source for benchmarking. This technique has made it possible to identify the key issues in the strategic management of the most excellent large Spanish firms and also to describe trends in this sense.The methodology used consisted in a content analysis of the web pages of the Ibex35 companies of the Spanish Stock Market. Rather than focusing on the breakdown of businesses developed by each corporation, it was thought more appropriate to assess their respective corporate principles, as this would allow a better identification of the underlying managerial, organisational and strategic realities of these organisations. As a conclusion we can say that thanks to this technique, it has been possible to identify the key issues in the strategic management of the most excellent large Spanish firms. Additionally, it is shown how this way of working can be generalised to any group of enterprises.Keywords: Web Pages, Internet, Strategic Management, Large Firms, Spain. 2 Justification of the studyIt cannot be denied that the website of a firm is an essential tool both for the people who develop their professional activity there and for the third parties that have relationships with it.Thus, Matherly and Burton (2005) point out that every company seems to have a website which contains at least a brief description of its operations and a list of its products. Some websites provide additional information, such as the company's market share, its mission statement and financial reports, while others go even further.The advantages offered by the use of this technology are evident for the firms, and also for the researchers who want to approach their reality since, according to Weischedel and Huizingh (2006), catalogues can be changed once a year but websites can be updated on a daily basis. Products can be added, texts changed, photos included, and links and pages inserted or All these studies illustrate how firm websites can represent a direct source for the development of interesting research works in the management area. From this point of view, an in-depth examination of the map site of a firm that has a well-developed website can provide patterns about its corporate strategy through all the elements surrounding the organisation.Under this argument, if we understand benchmarking as comparing the current performances and practices with others in the same area of interest or business (Bramham, 3 1997), we could identify the best practices of other organisations so that it can be implemented in one's own strategic operations. In parallel with this, we must remember with Mintzberg (1978), Ansoff (1987) and Segars and Grover (1999) that strategic planning has long been recognised as one of the most important activities of top management.In this way, the literature p...

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“…The option to defer or abandon when new information becomes available is attractive, hence the use of temporary employees. Bhattacharya and Wright (2005) suggest that much uncertainty relates to hiring because of the largely irreversible costs associated with recruitment, training and benefits, as well as maintenance of employees, costs regarded by Jacobs (2007) as sunk. …”

Section: Real Optionsmentioning

confidence: 99%