People.Processes.Networks

Here is something I really look forward to. After a very long time of intense intellectual challenge the paper by my colleague Aleš Berk and I  is finally in press at the Organization Science. It is an interdisciplinary paper that applies real options methodology to valuing flexibility created by training. Here is the abstract:

This paper refers to the conceptualizations of strategic flexibility, real options, and human resource (HR) options to
build a model for valuing future-oriented and organizational flexibility-enhancing aspects of training. By adopting an
indirect approach to measuring HR options by valuing particular investment projects in which human capital is involved,
we satisfy the conditions for applying the Black-Scholes option valuation model and avoid the problematic measurement
of the stand-alone value of human capital. The proposed valuation model is elucidated by a case study from the mobile
telecommunications industry. The results indicate that in rapidly growing markets based on emerging technology, the
generation of HR options based on training should be encouraged. Broader applicability and limitations of the valuation
model are discussed and directions for further development of the valuation model are given.

I will let you know when it comes out.