International Journal of Nonlinear Analysis and Applications

Identifying the components of the real options to choose in knowledge enterprises

Document Type : Review articles

Authors

1 Department of Management, Economics and Accounting, Tabriz Branch, Islamic Azad University, Tabriz, Iran

2 Department of Management and Accounting, Qazvin Branch, Islamic Azad university, Qazvin, Iran

3 Department of Management, Hadishahr Branch, Islamic Azad university, Hadishahr, Iran

4 Department of Accounting, Marand Branch, Islamic Azad university, Marand, Iran

Abstract

In today's complex and developing world, making accurate and timely decisions is very important for both managers and investors. The progress in the financial field, the invention of new financial methods and tools and the introduction of various software packages indicate the fact that in developed and developing economies, relying on traditional decision-making methods doesn't meet the needs of investors due to market requirements and competition to catch the opportunities among investors, especially institutional investors active in the real sector of the economy. The real option is a systematic approach in which economic modelling can be done using financial theory, economic analysis, operations research, decision theory, and statistical science. The present study was conducted to identify the components of the real option to choose in knowledge enterprises. The research was done with a qualitative approach. In the qualitative section, the components of real options to choose from in knowledge enterprises were identified through interviews and qualitative content analysis methods. The statistical population in this section included university specialists and experts, managers of knowledge enterprises and competent individuals with executive positions in those companies who have executive experience at decision-making levels. The sample size was obtained by purposive sampling equal to 12 people. Based on the results of the qualitative section, 10 main components and 63 sub-components were recognized to identify real options. After identifying the components, the axial category, including two real options: the abandonment option and expansion option, was identified by experts. These two options were valued for 15 knowledge enterprises by the Black-Scholes model. The results showed that the exercise of real options in knowledge enterprises optimizes the value of the company.

Keywords

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International Journal of Nonlinear Analysis and Applications
Volume 15, Issue 8
August 2024
Pages 65-78
  • Receive Date: 03 November 2022
  • Revise Date: 03 December 2022
  • Accept Date: 29 January 2023