Capabilities as Real Options

By Bruce Kogut, Nalin Kulatilaka. 2001

633 citations recorded by the source corpus.

Subfields: Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/def56f3f0a34b301bafad140753d5bdd7eeb0ec5

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Citations in the corpus

Real Options in Management and Organizational Strategy: A Review of Decision‐making and Performance Implications (2012, neutral): “The evolution of learning and dynamic managerial competences is the major factor leading towards the reversal of organisational inertia (Kogut and Kulatilaka 2001).”
Choice and Change of Measures in Performance Measurement Models (2004, background): “Barney (1991) argues that successful firms achieve competitive advantage by acquiring and using unique resources to build inimitable capabilities that create strategic advantages (see also Amit & Schoemaker, 1993; Kogut & Kulatilaka, 2001).”
Flexibility in internationalization: is it valuable during an economic crisis? (2009, background): “…724 Fisher Hall, 2100 Neil Avenue, Columbus, OH 43210, U.S.A. E-mail: makhija.2@osu.edu requires resources, capabilities, and strategies that are fundamentally different from those that are likely to lead to success in more stable markets (Bowman and Hurry, 1993; Kogut and Kulatilaka, 2001).”
Stakeholder Influence Capacity and the Variability of Financial Returns to Corporate Social Responsibility (2005, methodology): “Another tool is real option analysis (Barnett, 2003, 2005; Bowman & Hurry, 1993; McGrath, 1997; Kogut & Kulatilaka, 2001).”
What Do Resource- and Capability-Based Theories Propose? (2011, background): “This view defines the characteristics that signify the value of a resource as “a scarce factor . . . that embeds complex options on future opportunities” and permits “a firm to achieve a competitive position in the marketplace” (Kogut & Kulatilaka, 2001: 747).”
Real options theory in strategic management (2017, background): “Option extensions Complications Portfolios of options and interactions Option substitutability or complementarity Multiple sources of uncertainty Different uncertainties favor different investments and might change market timing and entry modes Competition and preemption versus cooperation Competiti”
Prediction and control under uncertainty: Outcomes in angel investing (2009, background): “Knight (1921) conceptualized the emergence of new event spaces as a fundamental ingredient in decision-making under uncertainty.”
How dynamic can organizational capabilities be? Towards a dual-process model of capability dynamization (2007, background): “These exploitation processes not only lead to a fixation to existing capabilities but also prevent the developing of new capabilities or, put differently, 'the pitfall is that this learning increases the rigidity of the firm' (Kogut and Kulatilaka, 2001: 755).”
Beyond hubris: How highly confident entrepreneurs rebound to venture again☆ (2010, background): “In the process of failing, more confident entrepreneurs develop individual and team specific capabilities that may be more difficult to transfer; and which continue to bind teammates who share the experiences that have built such capabilities ( Kogut and Kulatilaka, 2001 ).”
Real Options Pricing and Organizations: The Contingent Risks of Extended Theoretical Domains (2004, background): “Are not options dependent on the decision heuristics and capabilities of an organization (Kogut & Kulatilaka, 1994, 2001; Loch & Huchzermeier, 2001)?”
International Joint Ventures and the Value of Growth Options (2008, background): “Myers’s (1977) idea also provides a guide for managers making decisions under uncertainty (Bowman & Hurry, 1993; Kogut & Kulatilaka, 2001; McGrath, 1997), such as those regarding investments in R&D (Mitchell & Hamilton, 1988), JVs (Kogut, 1991), emerging markets (Kogut & Kulatilaka, 1994), and…”
Entry in the Presence of Dueling Options (2004, background): “…options have been used by management scholars to justify investment in a number of contexts, such as the acquisition of new firm capabilities (Kogut and Kulatilaka, 2001), and patterns of sequential investment in new ventures (Hurry, Miller, and Bowman, 1992), industry segments (Kim and…”