Entrepreneurial Game Theoretic Approach to Planning Flexibility and Environmental Scanning.
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Date
2013
Authors
Kuye, O.L.
Oghojafor, B.E.A.
Abiola, B.
Journal Title
Journal ISSN
Volume Title
Publisher
Canadian Center of Science and Education
Abstract
This study focuses on planning flexibility and environmental scanning from the standpoint of corporate
entrepreneurship, as represented by Top management. Game theory was applied in this study. In doing this, the
problem was viewed from a “worst case design concept” which can be summarised as follows: The intrapreneur
(the entrepreneur within a firm or corporate entrepreneurs) wishes to minimise the cost of operation while the
environment tries to maximize the cost of operation. Hence, we introduce a cost functional, which is the cost of
risk faced by the intrapreneur. We assume that the entrepreneur can apply flexibility in planning, hence denote this
as control, while the environment that is needed to be scanned is denoted as uncertainty. The model of game is
applied to allow for saddle point (a point where there is no ‘gain’ no ‘loss’) solution. The implication of this is that
for a saddle point to exist in a “worst case” situation, the intrapreneur is likely to breaking-even. Thus, a proper
mathematical treatment is given for such a game problem.
Description
Staff publication
Keywords
Intrapreneur , Game theory , Planning flexibility , Entrepreneurial
Citation
Kuye, O.L., Oghojafor, B.E.A. & Abiola, B. (2013), Entrepreneurial Game Theoretic Approach to Planning Flexibility and Environmental Scanning. International Business Research, vol. 6 (6).