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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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Main Authors: Muharam, Farrah Merlinda, Tarragon, Maria Antonia, Salleh, Zulkifli Mohamad
Format: Conference or Workshop Item
Published: 2015
Subjects:
T Technology (General)
Online Access:http://eprints.utm.my/id/eprint/62016/
http://www.mucet.net/2015/?q=node/17
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spelling my.utm.620162017-05-06T04:33:31Z http://eprints.utm.my/id/eprint/62016/ Valuing technology, setting up strategy: real option and SMEs Muharam, Farrah Merlinda Tarragon, Maria Antonia Salleh, Zulkifli Mohamad T Technology (General) 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 Tarragon, Maria Antonia and Salleh, Zulkifli Mohamad (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, Melaka, Malaysia. http://www.mucet.net/2015/?q=node/17
institution Universiti Teknologi Malaysia
building UTM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Malaysia
content_source UTM Institutional Repository
url_provider http://eprints.utm.my/
topic T Technology (General)
spellingShingle T Technology (General)
Muharam, Farrah Merlinda
Tarragon, Maria Antonia
Salleh, Zulkifli Mohamad
Valuing technology, setting up strategy: real option and SMEs
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.
format Conference or Workshop Item
author Muharam, Farrah Merlinda
Tarragon, Maria Antonia
Salleh, Zulkifli Mohamad
author_facet Muharam, Farrah Merlinda
Tarragon, Maria Antonia
Salleh, Zulkifli Mohamad
author_sort Muharam, Farrah Merlinda
title Valuing technology, setting up strategy: real option and SMEs
title_short 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_sort valuing technology, setting up strategy: real option and smes
publishDate 2015
url http://eprints.utm.my/id/eprint/62016/
http://www.mucet.net/2015/?q=node/17
_version_ 1643655304606384128
score 13.211869

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