OPPORTUNITY COSTS OF RISKS IN EVALUATION OF ADVANCED TECHNOLOGIES
Sharon M. Ordoobadi ()
Additional contact information
Sharon M. Ordoobadi: Department of Decision and Information Sciences, College of Business, University of Massachusetts-Dartmouth, 285 Old Westport Road, Dartmouth, Massachusetts, 02747, USA
International Journal of Innovation and Technology Management (IJITM), 2007, vol. 04, issue 03, 305-321
Abstract:
For most companies a key to survival in today's competitive market is to invest in new technologies. However, for many reasons such investments are difficult to justify by traditional economic analysis alone. One reason is the challenge of including the intangible and often hard to quantify costs and benefits associated with these investments. This is particularly true for new technologies due to the fact that there exits a lower level of corporate experience regarding the potential risks associated with a new technology compared to technologies that the company is familiar with. This situation points towards the need for an evaluation tool that complements classical economic analysis techniques with additional processes that consider these risks as well. The attempt here is to develop a process to help practitioners to consider the costs due to these risks through a systematic procedure based on their risk aversion traits.
Keywords: Technology adoption; justification technique; risk of adoption of a new technology; opportunity costs (search for similar items in EconPapers)
Date: 2007
References: View complete reference list from CitEc
Citations:
Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0219877007001090
Access to full text is restricted to subscribers
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:wsi:ijitmx:v:04:y:2007:i:03:n:s0219877007001090
Ordering information: This journal article can be ordered from
DOI: 10.1142/S0219877007001090
Access Statistics for this article
International Journal of Innovation and Technology Management (IJITM) is currently edited by H K Tang
More articles in International Journal of Innovation and Technology Management (IJITM) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().