Paper Info
Title
Real options approach to explore the effect of organizational change on IoT development project.
Abstract
The emerging information technology of internet of things (IoT) has caught much attention from both theoretical research and production practice. The application of IoT in manufacturing industry can dramatically improve business process efficiency and promote organizational performance. However, firms tend to hesitate in the investment decisions, which poses great challenges to the IoT application progress. Besides the investment nature of long cycle and high risk, the “organizational factors” are also non-ignorable. A general organizational change model is first refined according to the organizational change of Jianghuai Auto Company when applying IoT. Based on the binomial lattice tree framework, we propose a two-stage real options model to solve the optimal investment problems in both stages of internal pilot and product life-cycle management (PLM) expansion. Investment costs and future benefits are considered to investigate the promoting effect of organizational factors in project implementation. This paper demonstrates the internal causes and significances of organizational change for IoT development project, which is also theoretically meaningful for explanation of real options approach in organizational area.
Year
DOI
Venue
2017
10.1007/s11590-016-1006-8
Optimization Letters
Keywords
Field
DocType
IoT, Organizational change, Real options, Cost-benefit analysis
Mathematical optimization,Manufacturing,Organizational performance,Business process,Information technology,Internet of Things,Knowledge management,Cost–benefit analysis,Organizational learning,Investment decisions,Mathematics,Process management
Journal
Volume
Issue
ISSN
11
5
1862-4480
Citations 
PageRank 
References 
0
0.34
12
Authors
6
Name
Order
Citations
PageRank
Zhiping Zhou110.69
Xin-Bao Liu225426.14
Jun Pei320226.56
P. M. Pardalos426945.19
Lin Liu581.83
Chao Fu641525.59