PMID- 32403356
OWN - NLM
STAT- MEDLINE
DCOM- 20201111
LR  - 20201111
IS  - 1660-4601 (Electronic)
IS  - 1661-7827 (Print)
IS  - 1660-4601 (Linking)
VI  - 17
IP  - 9
DP  - 2020 May 11
TI  - Evaluating the Investment Projects of Spinal Medical Device Firms Using the Real 
      Option and DANP-mV Based MCDM Methods.
LID - 10.3390/ijerph17093335 [doi]
LID - 3335
AB  - In an era of global aging, spinal and other joint degeneration issues have become 
      a major problem for many elders. Bone-related operations have become the largest 
      percentage of surgeries, accounting for 40% of the top 10 operations in the 
      United States. Further, these spine-related operations are now ranked second 
      among all bone-related operations. Due to this enormous and daily increasing 
      market demand, more and more firms have started to pay closer attention to 
      related medical devices and products. The global venture capitalists (VCs) have 
      also started to follow the mega trend and will continue to invest heavily in this 
      industry. Although most VCs recognize that investing in firms that produce 
      innovative spinal products or devices is a must, very few practical managers or 
      research scholars have defined the appropriate evaluation methods for these firms 
      to use. The traditional net present value (NPV) method, which does not consider 
      operation flexibility and changes in strategy, is far from the reality. The real 
      option method can reveal the vagueness and flexibilities of the values being 
      embedded in the investment projects at spinal medical device firms. However, the 
      real option method is strictly quantitative. Usually, the evaluation aspects 
      contain qualitative factors or local criteria which are hard to quantify in 
      monetary terms. Thus, the adoption of multiple criteria decision making (MCDM) 
      methods that can manipulate both quantitative and qualitative factors will be 
      very helpful in evaluating and selecting investment cases like the spinal medical 
      device firms, where both quantitative and qualitative factors should be 
      considered. An analytical framework that consists of hybrid MCDM methods and the 
      real option method will thus be very useful to evaluate the newly established 
      firms producing spinal medical devices. Therefore, the authors propose a real 
      option valuation as well as the Decision-Making Trial and Evaluation Laboratory 
      (DEMATEL) based analytic network process (DANP) and the modified 
      VIsekriterijumsko KOmpromisno Rangiranje (VIKOR) method (DANP-mV) based MCDM 
      framework for evaluating the investment projects offered by these firms of spinal 
      medical devices. An empirical study based on three newly established spinal 
      medical device companies specializing in vertebral compression fracture (VCF) 
      surgical devices was used to demonstrate the feasibility of the proposed 
      analytical framework. Sensitivity analysis is performed to determine the 
      influence of modeling parameters on ranking results of alternatives. This 
      analytical framework can thus serve as a tool for VCs to use to determine the 
      value of a potential candidate for investment. The proposed method can also serve 
      as an effective and efficient tool for investment projects in other fields.
FAU - Huang, Chi-Yo
AU  - Huang CY
AD  - Department of Industrial Education, National Taiwan Normal University, Taipei 
      106, Taiwan.
FAU - Hsieh, Hong-Ling
AU  - Hsieh HL
AD  - Department of Industrial Education, National Taiwan Normal University, Taipei 
      106, Taiwan.
FAU - Chen, Hueiling
AU  - Chen H
AD  - Graduate Institute of Management, National Taiwan Normal University, Taipei 106, 
      Taiwan.
LA  - eng
PT  - Journal Article
PT  - Research Support, Non-U.S. Gov't
DEP - 20200511
PL  - Switzerland
TA  - Int J Environ Res Public Health
JT  - International journal of environmental research and public health
JID - 101238455
SB  - IM
MH  - Empirical Research
MH  - Equipment and Supplies/*economics
MH  - Fractures, Compression/*surgery
MH  - Humans
MH  - Investments
MH  - Manufacturing Industry/*trends
MH  - Research Design
MH  - Spinal Fractures/*surgery
PMC - PMC7246546
OTO - NOTNLM
OT  - biotechnology
OT  - multiple criteria decision making (MCDM)
OT  - real option analysis
OT  - spinal device
OT  - venture capitalists (VCs)
COIS- The authors declare no conflicts of interests.
EDAT- 2020/05/15 06:00
MHDA- 2020/11/12 06:00
PMCR- 2020/05/01
CRDT- 2020/05/15 06:00
PHST- 2020/04/05 00:00 [received]
PHST- 2020/05/04 00:00 [revised]
PHST- 2020/05/05 00:00 [accepted]
PHST- 2020/05/15 06:00 [entrez]
PHST- 2020/05/15 06:00 [pubmed]
PHST- 2020/11/12 06:00 [medline]
PHST- 2020/05/01 00:00 [pmc-release]
AID - ijerph17093335 [pii]
AID - ijerph-17-03335 [pii]
AID - 10.3390/ijerph17093335 [doi]
PST - epublish
SO  - Int J Environ Res Public Health. 2020 May 11;17(9):3335. doi: 
      10.3390/ijerph17093335.