On the value of project safeguards: Embedding real options in complex products and systems

Research Policy

Volumn 36, Issue 7, 2007, Pages 980-999

  Gil, Nuno ^a  

^a UNIVERSITY OF MANCHESTER   (United Kingdom)

Author keywords

Complex products and systems; Modularity; Project safeguards; Real options; Uncertainty

Indexed keywords

COSTS; INVESTMENTS; PROJECT MANAGEMENT; STRATEGIC PLANNING; UNCERTAINTY ANALYSIS;

COMPLEX PRODUCTS AND SYSTEMS (COPS); MODULARITY; PROJECT SAFEGUARDS; REAL OPTIONS;

INDUSTRIAL MANAGEMENT;

EID: 34548450253     PISSN: 00487333     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.respol.2007.03.004     Document Type: Article

References (65)

1. Adner R., and Levinthal D.A. What is not real option: identifying boundaries for the application of real options to business strategy. Academy of Management Review 29 1 (2004) 74-85
2. AIA. Open building: a new paradigm in hospital architecture, The American Institute of Architects. AIA Academy of Health Journal (2004) 27
3. Amram M., and Kulatikala N. Real Options. Managing Strategic Investment in an Uncertain World (1999), Harvard Business School Press
4. Baldwin C.Y., and Clark K.B. Sun wars: competition within a modular cluster, 1985-1990. In: Yoffie D.B. (Ed). Competing in the Age of Digital Convergence (1997), Boston Harvard Business School Press 123-158
5. Baldwin C.Y., and Clark K.B. Design Rules: The Power of Modularity vol. I (2000), MIT Press, Cambridge, MA
6. Bowman E.H., and Moskovitz G.T. Real options analysis and strategic decision-making. Organization Science 12 6 (2001) 772-777
7. Brady T., and Davis A. Building project capabilities: from exploratory to exploitative learning. Organization Studies 25 9 (2004) 1601-1615
8. Brusoni, S., Marengo, L., Prencipe, A., Valente, M., 2004. The Value and Costs of Modularity: A Cognitive Perspective, Paper No. 123, SPRU Electronic Working Paper Series, The Freeman Centre, University of Sussex.
9. Copeland T., and Tufano P. A real-world way to manage real options. Harvard Business Review (2004) 90-99
10. Davis A., and Brady T. Organisational capabilities and learning in complex product systems: towards repeatable solutions. Research Policy 29 (2000) 931-953
11. Dixit A.K., and Pindyck R.S. Investment Under Uncertainty (1994), Princeton University Press, Princeton, NJ
12. Eisenhardt K.M. Building theories from case study research. Academy of Management Review 14 (1989) 488-511
13. Engwall M. No project is an island: linking projects to history and context. Research Policy 32 5 (2003) 789-808
14. Ethiraj S.K., and Levinthal D. Modularity and innovation in complex systems. Management Science 50 2 (2004) 159-173
15. Fichman R.G., Keil M., and Tiwana A. Beyond valuation: options thinking in IT project management. California Management Review 47 2 (2005) 74-96
16. Flyvbjerg B. Making Social Science Matter (2001), Cambridge University Press
17. Flyvbjerg B., Bruzelius N., and Rothengatter W. Megaprojects and Risk: An Anatomy of Ambition (2003), Cambridge University Press
18. Ford D.N., and Sobek II D.K. Adapting real options to new product development by modeling the second toyota paradox. IEEE Transactions on Engineering Management 52 2 (2005) 175-185
19. Foster K.R., Vecchia P., and Repacholi M.H. Science and the precautionary principle. Science 12 (2000) 979-981
20. Geyer A., and Davies A. Managing project-system interfaces: case studies of railway projects in restructured UK and German markets. Research Policy 29 (2000) 991-1013
21. Gil N., Tommelein I., and Schruben L. External change in large engineering design projects: the role of the client. IEEE Transactions on Engineering Management 53 3 (2006) 426-439
22. Gil, N., Beckman, S., 2007. Design reuse and buffers in high-tech infrastructure development projects. A stakeholder perspective. IEEE Transactions on Engineering Management (forthcoming).
23. Glaser B., and Strauss A. The Discovery of Grounded Theory (1967), Aldine, Chicago, IL
24. Glynn S. Constructing a selection environment: competing expectations for CFC alternatives. Research Policy 31 (2002) 935-946
25. Habraken J. In: Jonathan T. (Ed). The Structure of the Ordinary. Form and Control in the Built Environment (1998), The MIT Press
26. Hobday M. Product Complexity, Innovation and Industrial Organization. Research Policy 26 (1998) 689-710
27. Hobday M. Innovation in complex products and system. Research Policy 29 (2000) 793-804
28. Hobday M. The project-based organisation: an ideal form for managing complex products and systems?. Research Policy 29 (2000) 871-893
29. Hughes T.P. The evolution of large technological systems. In: Bijker W., Hughes T.P., and Pinch T. (Eds). The Social Construction of Technological Systems (1987), Cambridge 51-82
30. Jick T.D. Mixing qualitative and quantitative methods: triangulation in action. Administrative Science Quarterly 24 4 (1979) 602-612
31. Kendall S., and Teicher J. Residential Open Building (2000), E&FN Spoon
32. Kogut B., and Kulatilaka N. Capabilities as real options. Organization Science 12 6 (2001) 744-758
33. Kogut B., and Kulatilaka N. Real options pricing and organizations: the contingent risks of extended theoretical domains. Academy of Management Review 29 1 (2004) 102-110
34. Kulatilaka. Operating flexibilities in capital budgeting: substitutability and complementarity in real options. In: Lenos T. (Ed). Real Options in Capital Investment. Models, Strategies, and Applications (1995), Praeger Pub. 121-132
35. Kulatilaka. A general model of real options. In: Lenos T. (Ed). Real Options in Capital Investment. Models, Strategies, and Applications (1995), Praeger Pub. 89-107
36. Langley A. Strategies for theorizing from process data. Academy of Management Review 24 4 (1999) 691-710
37. Markard J., and Truffer B. Innovation processes in large technical systems: market liberalization as a driver for radical change?. Research Policy 35 (2006) 609-625
38. McGrath R.G., and MacMillan. Assessing technology projects using real options reasoning. Research Technology Management 43 (2000) 35-49
39. McGrath R.G., Ferrier W.J., and Mendelow A.L. Real options as engines of choice and heterogeneity. Academy of Management Review 29 1 (2004) 86-101
40. Mikkola J.H., and Gassman O. Managing modularity of product architectures: toward an integrated theory. IEEE Transactions on Engineering Management 50 2 (2003) 204-218
41. Miles M.B., and Huberman A.M. Qualitative Data Analysis. An Expanded Sourcebook. 2nd ed. (1994), Sage Publications
42. Miller R., Hobday M., Lewroux-Demer T., and Olleros X. Innovation in complex systems industries. The case of flight simulation. Industrial and Corporate Change 4 2 (1995) 363-400
43. Miller R., and Lessard D.R. The Strategic Management of Large Engineering Projects (2000), The MIT Press, Cambridge, MA
44. Morris P.W.G. The Management of Projects (1994), Thomas Telford, London
45. Pich M.T., Loch C.H., and De Meyer A. On uncertainty, ambiguity, and complexity in project management. Management Science 48 8 (2002) 1008-1023
46. Pindyck R.S. Investment of uncertain cost: an application to the construction of nuclear power plants. In: Schwartz E.S., and Trigeorgis L. (Eds). Real Options and Investment under Uncertainty. Classical Readings and Recent Contributions (2001), The MIT Press
47. Prencipe A., and Tell F. Inter-project learning: processes and outcomes of knowledge codification in project-based firms. Research Policy 30 (2001) 1373-1394
48. Sheffi Y. The Resilient Firm. Overcoming Vulnerability for Competitive Advantage (2005), The MIT Press
49. Schilling M.A. Toward a general modular systems theory and its application to interfirm product modularity. Academy of Management Review 25 2 (2000) 312-334
50. Simon H.A. The architecture of complexity. Proceedings of the American Philosophical Society 106 6 (1962) 467-482
51. Smit H.T.J., and Trigeorgis L. Flexibility and commitment in strategic investments. In: Schwartz E.S., and Trigeorgis L. (Eds). Real Options and Investment under Uncertainty: Classical Readings and Recent Contributions (2001), MIT Press, Cambridge, MA 451-498
52. Smit H.T.J., and Trigeorgis L. Strategic Investment. Real Options and Games (2004), Princeton University Press
53. Strauss A., and Corbin J. Basics of Qualitative Research: Grounded Theory Procedures and Techniques (1990), Sage, Newbury Park, CA
54. Taudes A. Software growth options. Journal of Management Information Systems 15 1 (1998) 165-185
55. Terwiesch C., Loch C.h., and De Meyer A. Exchanging preliminary information in concurrent engineering: alternative coordination strategies. Organization Science 13 4 (2002) 402-419
56. Thomke S.H. The role of flexibility in the development of new products: an empirical study. Research Policy 26 (1997) 105-119
57. Trigeorgis L. Real options: an overview. In: Trigeorgis L. (Ed). Real Options in Capital Investment. Models, Strategies, and Applications (1995)
58. Trigeorgis L. Real Options: Managerial Flexibility and Strategy in Resource Allocation (1996), MIT Press, Cambridge, MA
59. Ulrich K.T. The role of product architecture in the manufacturing firm. Research Policy 24 (1995) 419-440
60. Ulrich K.T., and Eppinger S.D. Product Design and Development (1995), McGraw-Hill
61. Van den Ende J., and Kemp R. Technological transformations in history: how the computer regime grew out of existing computing regimes. Research Policy 28 8 (1999) 833-851
62. Vogt W.P. Dictionary of Statistics and Methodology: A Nontechnical Guide for the Social Sciences (1999), Sage, London
63. Walker W. Entrapment in large technological systems: institutional commitment and power relations. Research Policy 29 (2000) 833-846
64. Yin, R.K., 2003. Case study research. Design and methods (3rd ed.), 1984, 1st ed., Applied Social Research Methods Series, vol. 5. Sage Publications Inc.
65. Zardkoohi A. Do real options lead to escalation of commitment?. Academy of Management Review 29 1 (2004) 111-119