Strategy research on real options has emphasized the need to understand better the sources of the option value of the firm. We begin to address this issue by assessing the relative importance of firm versus industry influences on the value of firms' growth options. On the one hand, firms have...

Real options theory predicts that international joint ventures (IJVs) confer valuable growth options to firms, yet there has been no direct evidence on whether firms actually capture growth option value from such investments and under what conditions. We bridge the gap between theory and...

In this study, we investigate how foreign direct investment (FDI) and multinationality affect firms' risk levels. Our investigation builds on the idea from real options theory that international operations offer multinational corporations (MNCs) switching options, yet we also emphasize different...

Multinational operations confer firms a portfolio of switching options that offer the potential for operating flexibility in the context of input cost variability, allowing firms to reduce downside risk. In this paper, we argue that two conditions may shape the relationship between...

Existing strategic group studies have rarely examined ownership type as a variable to classify firms in an industry. Using Chinese firms of different ownership types, we suggest that ownership type can be a parsimonious and important variable that managers use to cognitively classify firms into...