Analysis on Option Value of Supplier Involvement in Collaborative Development
The purpose of this study was to recognize and analysis the option value of supplier’s involvement in the collabotative project. Using real option theory, this paper began by distinguishing two forms of exit mechnisms for a collaborative project between enterprises in supply chain, and then analysised the anticipated project value of every participation by different exit mechanism. Research conclusion shown, the option behaviour of common termination is endogenetic in project, and every participant will get benifit through making the parterners’ agreement consistency, which emphasis the collaboration nature of partnership. Unilateral termination of collaborative project is an non-cooperative behaviour which will incur loss of parterner’s benefit and reduce the project’s overall value.
Liangchi Zhang, Chunliang Zhang and Zichen Chen
Z. J. Zhang and H. Pan, "Analysis on Option Value of Supplier Involvement in Collaborative Development", Advanced Materials Research, Vols. 328-330, pp. 814-819, 2011