Applying options to evaluate service innovations in the automotive industry Online publication date: Wed, 06-Jul-2005
by Iuan-Yuan Lu, Liang-Hung Lin, Guo-Chiang Wu
International Journal of Technology Management (IJTM), Vol. 32, No. 3/4, 2005
Abstract: The service sector is important in the economy of most advanced countries. Focusing on service innovation, this study examines customer service activities in the automobile industry from 2001 to 2003, and identifies the most representative and innovative services of motor firms. These service innovations are not recommended under traditional discounted cash flow (DCF) assessment. However, a positive options-based net present value (NPV) motivates companies to innovate their service activities and thereby increase the number of products they sell. Evidence shows that an options-based evaluation is more suitable than traditional approaches. The results of this study should help managers to address and evaluate service innovations.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Technology Management (IJTM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com