Журнал международных бизнес-исследований

1544-0230

Абстрактный

The Role of Real Options Knowledge in MNE Performance

Buhra Jesfu

In recent years, the use of real options theory in international strategy has exploded. However, because it is still a new and ill-defined topic, there are a number of limitations to practical uses of this strong theory. To advance this topic, the study first presents a comprehensive review of real options theory's theoretically and empirically contributions to three fundamental challenges in internationalization process: valuing multinational networks, appraising market entry methodologies, and determining market entry timing. Future research could focus on a more sophisticated analysis of unpredictability and the establishment of a dynamical theory in international strategy, according to the article. In these directions, five verifiable propositions are created. The emphasis is on the real options logic's decision-making and performance features in relation to strategic investments, governance modes, and international operations management. These characteristics are studied from a strategic and operational perspective of organisational decision-making, as well as an overview of empirical research on option pricing decision-making and performance.

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