Int. J. of Technology Intelligence and Planning   »   2014 Vol.10, No.2



Title: Entrepreneurship and the art of tackling technological crises: a strategic real options framework


Authors: Mikael Collan; Jörg Freiling; Kalevi Kyläheiko; Ellen Roemer


School of Business, Lappeenranta University of Technology, Lappeenranta 53851, Finland
University of Bremen, Wilhelm-Herbst-Str. 5, Bremen D-28359, Germany
School of Business, Lappeenranta University of Technology, Lappeenranta 53851, Finland
Market Research and International Marketing, University of Applied Sciences Ruhr-West, Wiesenstrasse 36, Mülheim an der Ruhr 45473, Germany


Abstract: In this paper, we will answer the question of how companies should change their capabilities and entrepreneurial styles to survive when facing technological uncertainty. While real options analysis has largely been used for valuation purposes, we suggest that thinking in terms of real options is suitable for addressing strategic issues as well. Real options theory helps reveal how entrepreneurs are able to evaluate uncertain and complex future options when coping with drastic technological changes. We propose that our theoretical construction called strategic real options framework is a good supplement to the dynamic capability view, since it involves decision-making patterns such as creating, sensing, scanning, seizing and reconfiguring of real options. The real options connection also opens up new avenues to look at dynamic capability-based view about entrepreneurship and the role of technology intelligence within it. Finally, we provide qualitative empirical support for our framework by means of a case study.


Keywords: strategic real options; dynamic capabilities; organisational capabilities; entrepreneurial styles; technological uncertainty; entrepreneurship; micro-foundations; technological change; technological crises; technology intelligence.


DOI: 10.1504/IJTIP.2014.068021


Int. J. of Technology Intelligence and Planning, 2014 Vol.10, No.2, pp.166 - 185


Available online: 10 Mar 2015



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