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Option models have provided insight into the value of flexibility to switch from one state to another (such as switching a mine or refinery from operating to closed status). More complex flexible processes offer multiple possibilities for switching states. A fabrication facility, for example, may offer options to shift from the current status to any of several alternatives (reflecting reconfiguration of basic facilities to accommodate different operating processes with different outputs). New algorithms enable practical application of complex option pricing models to flexible facilities, improving analysts’ ability to draw sound conclusions about the effects of flexibility and innovativeness on share value. Such models also apply for options with information items as the underlying assets. Information organizations such as oil exploration and development companies may include options to shift from the current capability to any of several alternatives reflecting added abilities to handle new information sources or apply the organization’s talents in new ways. In the case of either physical or information processing, careful attention to estimating the matrix of correlations among the values of potential alternative states allows explicit integration of financial analysis and strategic analysis – especially the influence of substitutes and the anticipated reactions of competitors, suppliers, and potential new entrants.

Analysis of Information Options offers new tools for evaluating investments in research, mineral exploration, logistics, energy transmission, and other information operations. With Information Options, the underlying assets are information assets and the rules governing exercise are based on the realities of the information realm (infosphere). Information Options can be modeled as options to “purchase” information assets by paying the cost of the information operations involved. Information Options arise at several stages of value creation. The initial stage involves observation of physical phenomena with accompanying data capture. The next refinement is to organize the data into structured databases. Then bits of information are selected from storage and synthesized into an information product (such as a management report). Next, the information product is presented to the user via an efficient interface that does not require the user to be a field expert. Information Options are similar in concept to real options but substantially different in their details, since real options have physical objects as the underlying assets and the rules governing exercise are based on the realities of the physical world. Also, while exercising a financial option typically kills the option, Information Options may include multiple exercises. Information Options may involve high volatility or jump processes as well, further enhancing their value. This chapter extends several important real option applications into the information realm, including jump process models and models for valuing options to synthesize any of n information items into any of m output assets.

How do organizations respond to negative feedback regarding their innovation activities? In this chapter, the authors reconcile contradictory predictions stemming from behavioral learning and from the escalation of commitment (EoC) perspectives regarding persistence under negative performance feedback. The authors core argument suggests that the seemingly contradictory psychological processes indicated by these two perspectives occur simultaneously in decision makers but that the design of organizational roles and reward systems affects their prevalence in decision-making tasks. Specifically, the authors argue that for decision makers responsible for an individual project, responses given to negative performance feedback regarding a project are dominated by self-justification and loss-avoidance mechanisms predicted by the EoC literature, while for decision makers responsible for a portfolio of projects, responses to negative performance regarding a project are dominated by an under-sampling of poorly performing alternatives that behavioral learning theory predicts. In addition to assigning decision-making authority to different organizational roles, organizational designers shape the strength of these mechanisms through the design of reward systems and specifically by setting more or less ambiguous goals, aspiration levels, time horizons of incentives provided, and levels of failure tolerance.

We discuss recent developments in real options theory and its applications to strategic management research, examine the potential difficulties in implementing real options in theory and practice, and propose several areas for future research. Our review shows that real options theory has provided substantial insights into investment and exit decisions as well as into the choice of investment modes. In addition, extant research studies have contributed significantly to our understanding of whether and how organizations can benefit from real options. Future research that addresses difficulties in applications will further advance both real options theory and practice in strategic management. We call for future generations of research to enhance the impact of real options as an emerging dominant conceptual lens in strategic management.

As triumphantly announced in journals and magazines, a la Fukuyama, late capitalism and its contingent logic of neoliberalism (ostensibly) reigns supreme, exploiting each site it encounters with precision. According to this fantasy of capitalism's seamless and ultimate triumph, domination is produced as inevitable, social struggle and revolution, a utopian dream. Yet, what many have seen since the 1990s is that this narrative requires military mobilizations of different kinds (i.e., “the war on terror” has become of late the reason thousands are being killed daily in Afghanistan and Iraq).

Scholars studying postwar settings are often highly critical of the work of NGOs in peacebuilding. In this chapter, I argue that many of the limitations of the NGO model are the result of the structure of funding. Using ethnographic and archival data from donors and NGOs engaging in peacebuilding in Croatia, this chapter examines the incentives build into the dominant donor–NGO model of funding. I find that the incentives for both donors and NGOs built into funding for peacebuilding lead to dysfunctional behavior by both donors and NGOs, and ultimately to ineffective and sometimes counterproductive peacebuilding projects. I find that donors actively shape the agenda of NGOs and push NGOs to see projects as the unit of peacebuilding. Donor funding is novelty seeking, rewarding NGOs for coming up with new project ideas and working in new locations. It also favors quantifiable events and activities for the purposes of reporting. In practice, these systematic preferences lead to the abandonment of successful projects, difficulty in securing long-term funding for work in troubled communities, and the favoring of countable events over development of the interpersonal relationships that are at the heart of successful peacebuilding.

The implementation of value management (VM) by the stakeholders in the South African construction industry is very low due to misperception about the integration of sustainability and VM as two separate studies. The South African construction industry implementation of VM is at a stage where one could infer that it has not been introduced into the construction industry at all. The introduction gives a review of the interest of the client towards getting the desired satisfaction using various VM techniques. The following chapter evaluates the services employed using VM practice to how project management could be enhanced through the services mediated by construction professionals in South Africa's construction industry.

Scholars have begun to recognize the importance of integrating organizational issues into real options theory. In doing so, some argue that options are inappropriate for evaluating critical strategic investments. In a more in-depth analysis, we argue that the organizational form that an option takes has a profound effect on exercise decisions. When options are initially integrated, organizational elements such as routines and culture become increasingly intertwined over time, raising the cost of abandoning the option – in effect, pushing firms to exercise options. In contrast, initially isolated options become idiosyncratic and more costly to integrate over time – pushing firms to kill them. There are also reputational and social capital effects that may bias exercise decisions beyond the mere consideration of costs, leading to escalation or missed opportunities.

Accordingly, firms must first be able to manage the associated organizational costs and minimize systematic bias in exercise decisions. Real options theory is moving away from the limitations of the financial options analogy and is increasingly integrated with strategy and organization theory. This shift requires that researchers consider issues such as intermediate organizational forms, external monitoring of exercise decisions, portfolios of competing options, and group process interventions.

Application of sustainable construction is highly important in achieving construction project goal as well as reducing energy consumption and waste. In view of this, value is a critical aspect of construction project delivery, and in as much as value is more than just money in construction, this chapter addresses value as one of the paramount factors that determine project success in the construction industry. It explained the concept of sustainable construction from value point of view, the meaning and concept of value and its essentiality in the construction industry.

There is more than a bit of ‘ethical neediness’ in society. One good question is what can be done about it. The answer pursued here is that we should promote integrity aggressively and integritively. Directing attention to the arena of higher education and problems associated with academic or educational integrity, the chapter (a) discusses honor codes as a device for promoting academic integrity; (b) identifies and explains a key virtue and a vice of honor codes and, in relation to the values an honor code is meant to safeguard, a significant way in which honor codes are like a professional ethic; and (c) argues that success in this project requires abandonment of an attractive but misleading conception of ethics that suggests, wrongly, that acting rightly is simply a matter of rigid adherence to standards. To be sure, some questions about what one should do are straightforwardly and quite legitimately answered by reference to rules. In this, ethics may seem quite like law (adjudication). But one has to be careful here, lest one be seduced by the siren song of what Roscoe Pound called mechanical jurisprudence, for in law and ethics, as in the Greek myth, this does not have a happy ending. There is more to the story. In ethics (adjudication too) one confronts genuine complexity that cannot be dealt with algorithmically. This is something that we have to face head on, if we are committed to promoting integrity integritively.