This paper examines the implications of real options theory for both the decision to divest a business unit and the mode of divestment. It is shown that the decision to divest a business unit and the decision to engage in staged modes of divestment are both sensitive to uncertainty, consistent...

Develops a framework for identifying competitiveimperfections in strategic factor markets (i.e., those markets for theresources needed to implement a strategy). The goal of this framework is to aidfirms in implementing high return product market strategies. In a perfectmarket setting, a firm...

Explores the link between a firm's resources and its sustained competitive advantage. For purposes of this analysis, a firm is considered to have a sustained competitive advantage when it is implementing a value creating strategy that no competitor is implementing and when these competitors are...

Investigates the differences in decision-making processes used by managers in large organizations and entrepreneurs. These differences are examined with respect to two biases and heuristics: overconfidence and representativeness. Overconfidence is defined as overestimating the probability of...

This study examines the coevolution of inter-firm networks and the choices that firms make about governance. Prior studies on inter-firm networks and alliances have provided insights into how networks shape firms' decisions about organizational governance. This stream of research has focused on...

Macroeconomic theory assumes that factors of production in the economy are homogeneous and fungible. As a result, it is poorly suited for analyzing and developing policy responses to the recent financial crisis. Theories of strategic management and organization, with their emphasis on...