The influence of global uncertainty on the cross-border performance appraisal

2014 ◽  
Vol 43 (1) ◽  
pp. 19-40 ◽  
Author(s):  
Jane Maley ◽  
Robin Kramer
Keyword(s):  
Real Options ◽  
Performance Management ◽  
Performance Appraisal ◽  
Multinational Corporations ◽  
Content Type ◽  
Real Options Theory ◽  
Cross Border ◽  
Global Uncertainty ◽  
Profit Maximisation ◽  
Options Theory

Purpose – The aim of this paper is to examine the practice of performance management in a cross-border context in times of global uncertainty. Design/methodology/approach – This is a conceptual paper. Findings – The findings expose global uncertainty to be wielding a significant influence on performance management. Practical implications – A practical framework is developed using real options theory. This approach offers suggestions for multinational corporations to increase the effectiveness of their performance management while at the same time focusing on profit-maximisation. Originality/value – This paper enhances international management research by recognizing that real options theory can effectively be applied to improve the effectiveness of performance management in global uncertainty.

Competitiveness and cost behaviour: evidence from the retail industry

2019 ◽  
Vol 21 (1) ◽  
pp. 125-141
Author(s):  
Komang Ayu Krisnadewi ◽  
Noorlailie Soewarno
Keyword(s):  
Real Options ◽  
Corporate Strategy ◽  
Retail Industry ◽  
Stock Exchanges ◽  
Competitive Pressure ◽  
Content Type ◽  
Real Options Theory ◽  
Corporate Strategies ◽  
Cost Behaviour ◽  
Options Theory

Purpose With a particular emphasis on corporate strategies for innovation, the purpose of this paper is to examine how cost behaviour operates under conditions of strong competition in the retail industry. Design/methodology/approach Retail companies listed on the Indonesian, Singaporean and Malaysian capital markets are studied using the regression analysis method. Findings The findings of this study show the sticky behaviour of changes in the selling, general and administrative (SGA) costs when companies are under competitive pressure. When sales increase, SGA costs will increase; however, when sales decline, SGA costs evidently increase. This is especially true for retail companies which have suffered a decrease in their sales of less than 7 per cent, but experienced positive sales growth in the previous period. The suggestion would seem to be that competition leads to greater aggression and the contemporary real options theory bears this out. Research limitations/implications This study only uses data from retail companies listed on stock exchanges in Singapore, Indonesia and Malaysia. Practical implications The type of industry, the extent of the competition and the corporate strategy employed might influence the extent of cost stickiness. Therefore, the users of financial statements need to understand these factors. Originality/value While previous studies incorporated a variety of industries, this paper focuses on examining cost behaviour amid the competitive pressure from recent phenomena in the retail industry. The study provides empirical evidence for supporting the contemporary real options theory. When an industry experiences competition, investing in an uncertain situation will add value to a company, even if it causes sticky cost behaviour. This result contributes to the literature on cost behaviour and strategy management.

Development of a conceptual framework on real options theory for strategic human resource management

2018 ◽  
Vol 50 (5) ◽  
pp. 272-284 ◽  
Author(s):  
Som Sekhar Bhattacharyya
Keyword(s):  
Resource Management ◽  
Human Resource Management ◽  
Real Options ◽  
Human Resource ◽  
Strategic Human Resource Management ◽  
Market Demand ◽  
Content Type ◽  
Real Options Theory ◽  
Strategic Hrm ◽  
Options Theory

Purpose The purpose of this paper is to propose a conceptual real options theory framework for the firms to use options to mitigate both investment risks and retention of the trained human resources. Design/methodology/approach This conceptual paper is built with logical argumentation. Findings The growth of IT firms has created a demand for quality IT industry employees in substantive quantity in India. IT firms provide training and development (T&D) inputs for developing better skills of employees for better employee and superior firm performance. T&D input requires firm investment. It also creates enhanced market demand for the trained employee. High growth area like IT firms not only competes for market but also for employees. A trained employee might leave the firm that provided the training to join a rival firm which offers relatively better salary, a catch -22 situation. This paper develops a real options-based framework for strategic human resource management (HRM). Research limitations/implications This work integrates the theory of real options and strategic HRM. Originality/value This conceptual work is one of the first attempts to use real options theory on strategic HRM.

Option valuation of Philippine forest plantation leases

2004 ◽  
Vol 9 (3) ◽  
pp. 315-333 ◽  
Author(s):  
ROBERTO C. YAP
Keyword(s):  
Real Options ◽  
Sunk Costs ◽  
Forest Plantation ◽  
Market Uncertainty ◽  
Real Options Theory ◽  
Highly Sensitive ◽  
Future Value ◽  
Plantation Development ◽  
Philippine Government ◽  
Options Theory

The Philippine forest plantation lease is modelled as an option whose value arises from market uncertainty and the irreversibility inherent in sunk costs required to establish plantations. The value of this option could be a significant factor in the planting decisions of leaseholders. Real options theory could help explain why in spite of the prospects of adequate financial returns, Filipino leaseholders are slow to establish plantations. The opportunity cost of investing is demonstrated to be highly sensitive to uncertainty of the future value of the plantation. Real options analysis is also utilized to evaluate policies intended by the Philippine government to promote plantation development.

HR analytics and performance appraisal system

2017 ◽  
Vol 40 (6) ◽  
pp. 684-697 ◽  
Author(s):  
Anshu Sharma ◽  
Tanuja Sharma
Keyword(s):  
Conceptual Framework ◽  
Performance Management ◽  
Performance Appraisal ◽  
Appraisal System ◽  
Improve Performance ◽  
Content Type ◽  
Organizational Settings ◽  
Employees Satisfaction ◽  
Management Area ◽  
And Performance

PurposeThis paper aims to explore the role of human resource (HR) analytics on employees’ willingness to improve performance. In doing so, the paper examines issues related to the performance appraisal (PA) system which affect employees’ willingness to improve performance and how HR analytics can be a potential solution to deal with such issues. Design/methodology/approachThe paper develops a conceptual framework along with propositions by integrating both academic and practitioner literatures, in the field of HR analytics and performance management. FindingsThe paper proposes that the use of HR analytics will be negatively related to subjectivity bias in the PA system, thereby positively affecting employees’ perceived accuracy and fairness. This further positively affects employees’ satisfaction with the PA system, which subsequently increases employees’ willingness to improve performance. Research limitations/implicationsThe paper provides implications for both researchers and practitioners in the performance management area for improving employees’ performance by applying HR analytics as a strategic tool in the PA system. It also provides implications for future researchers to empirically test the conceptual framework in different organizational settings. Originality/valueThe paper offers insights into how the use of HR analytics can deal with issues of subjectivity bias in the PA system and positively affects employees’ willingness to improve performance.

Enterprise Resource Planning Under Open Source Software

2010 ◽  
pp. 1571-1589
Author(s):  
Ashley Davis
Keyword(s):  
Real Options ◽  
Open Source ◽  
Open Source Software ◽  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Future Trends ◽  
Critical Factors ◽  
Real Options Theory ◽  
The Right ◽  
Options Theory

Open source software is becoming more prevalent in businesses today, and while still a relatively immature offering, open source enterprise resource planning (OS-ERP) systems are becoming more common. However, whether or not an OS-ERP package is the right software for a given organization is a little researched question. Building on the current real options thinking about platform acquisitions, this chapter proposes the five most critical factors to consider when evaluating an OS-ERP package. To adequately do this, a great deal of detail about the current offerings in OS-ERP software is presented, followed by a review of the real options theory and thinking behind using these factors to evaluate OS-ERP options. The international implications of OS-ERP are presented in the “Future Trends” section.

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